-'An integrated financial market - a building-block for growth and stability'
Mid-Term Review of Progress towards European Financial Integration.
In his speech on the occasion of the FSAP Mid-Term review Mr Prodi urged to speed up the implementation of the Action Plan.
'In some market segments,' he said 'financial instruments have been standardised across the Union. But there is still major work to be done in other areas:
In the mortgage and corporate loans markets, there is a substantial lack of convergence in the prices of services.
The integration process is also far from complete in the retail credit market.
For securities, rules on market abuse, prospectuses and collateral need to be adopted quickly.
The Investment Services Directive needs to be reshaped for a new era of trading and cross-border investment services.'
'But in some areas', he continued 'we have not seen any progress at all:
The Take Over Bids Directive was rejected after 12 years of negotiation. We will table a revised proposal around May. Here we must find an equitable deal so that there is a real 'level playing field' in the Union.
The Pension Funds Directive is stalled. Yet it is vital for providing funds for an ageing population - and for agreeing prudential-risk spreading rules.
Most worrying is the overall pace of delivery of the Action Plan's many proposals. This year the Council and the European Parliament will have to adopt ten or so legislative acts if we are to meet our targets. Will they manage?'
The Mid-Term Review is one of a series of steps in the approach to the March 2002 Barcelona Summit. Its conclusions will feed into the 14th meeting of the Financial Services Policy Group on 26 February. The main conclusions and targets of the mid-term review were:
Directives on Financial Conglomerates, Prospectuses and Pension Funds should be finally adopted by December 2002.
the International Accounting Standards Regulation and the proposed Directives on Collateral, Market Abuse, Insurance Intermediaries and Distance Marketing should be adopted by June 2002.
in order to meet these deadlines the institutions should try to agree on a single reading or accelerated second readings.
Mr Bolkestein promised that the Commission would present as soon as possible its remaining proposals under the Action Plan, including the Directive on Takeover Bids, a revision of the Investment Services Directive, and a number of company law related Directives.
The Commission would also bring forward proposals on capital requirements for banks. A consultative document would be issued as soon as work on a new Capital Accord in the Basel committee on banking supervision was sufficiently advanced.
See full speech and also
the Commission press release on the mid-term review.
© European Commission
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