14 March 2005

ECON: Villiers report on Clearing and Settlement

Theresa Villiers presented her own initiative report on Clearing and Settlement in ECON Committee on Monday clearly opposing to new legislation and a possible new directive as envisaged by the European Commission. “There is no evidence that provision of clearing and settlement services is inadequately regulated” she says in her report. “Our focus should therefore be on bringing down the cost of cross border clearing and settlement, which is usually higher than for domestic transactions. A directive is not the best way to do this.”

Already on 10 March ECB President Trichet backed the plans for a future directive “in order to ensure the smooth operation of the markets and guarantee financial stability”. The idea of a future directive is also backed by the chair of the ECON Committee, Ms Beres.

On Wednesday, the Commission plans to publish the results of its Consultation which should state that the majority of respondents favour a Commission proposal.

Before any final decision the Commission plans to start a second round of Consultation in spring this year. If the process will continue, an impact assessment would take place in 2005, a draft proposal for a directive could then be expected for 2006.

Furthermore, a fiscal expert group should be established by the end of this year to examine the differences of the national fiscal systems with regard to cross border clearing and settlement as recommended by the Giovannini group.

The deadline for amendments on the Villiers report is the 18 March 2005, followed by a debate on 30 March. Vote in EMAC will take place on 19 April, vote in EP during the May pleanary.

Villiers report
Commission comunication

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