03 June 2002

FSAP: Sixth Progress Report

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The sixth progress report on the Financial Services Action Plan (FSAP) reflects a significant change in the political climate and concludes that there has been 'real and tangible progress', the Commission states in their press release.. The longstanding political commitment to implement the FSAP on time is now being translated into firm agreements, with more and more measures being adopted or making encouraging progress.

Commission President Romano Prodi said: 'The Financial Services Action Plan is about delivering an integrated financial market. That will build confidence and greatly strengthen the European Union. Today I call on political leaders, on the European Parliament, on the Council, on market leaders, investors, consumers and regulators to keep working with us to complete the process.'

Commissioner Frits Bolkestein added: 'I am delighted that the latest progress report on the Action Plan concludes that there has been 'real and tangible progress'. But, as it also says, 'significant challenges' remain. This is a marathon, not a sprint. There is a new sense of urgency on the Financial Services Action Plan. You might say we are in the quarterfinals.'

Referring to his last visit to the US he added: “The US supports our efforts and there is a good deal of common ground. I met Deputy Treasury Secretary Kenneth Dam, SEC Chairman Harvey Pitt and Vice-Chairman and Governor of the Federal Reserve Board, Roger Ferguson. We agreed that we should pursue our discussions on financial services regulatory issues so that the EU and the US can indeed seize the prize of a transatlantic securities market.”

The Council is expected in the next few days to adopt the International Accounting Standards Regulation at first reading and reach a first agreement on the Pension Funds Directive on 4 June. It has reached a Common Position on the Life Assurance Directives and is in the process of doing so on the financial conglomerates and market abuse proposals.

At its May plenary, the Parliament adopted the Collateral Directive and approved at second reading the proposal for a Directive on Distance Marketing of Financial Services.

“Member States must continue to demonstrate the necessary political will to compromise during the discussions themselves”, the report says. “The closest possible co-operation between the EU Institutions is also essential in order to obtain as many single reading agreements or accelerated second readings as possible.”

Commission Press Release
Sixth Progress Report
Prodi speech
Bolkestein speech

© European Commission