Minister Zypries

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European Economic and Social Committee /
9thEUROPEAN CONSUMER DAY
Financial services in the EU
STATEMENT
by
MrDimitris DIMITRIADIS
President of the European Economic and Social Committee
Berlin, 16thMarch 2007

Minister Zypries,

Commissioner Kuneva,

President Momper,

Secretary General Müller

Colleagues,

Ladies and Gentlemen,

It is a pleasure for me to open this conference together with Minister Zypries.

In fact, I have here, today, the confirmation that the idea of establishing a European Consumer Day was one of the most successful initiatives the European Economic and Social Committee has taken in the recent past.

Since the beginning the ECD has had the full support of the European Commission, and the presence of Ms Kuneva, at the very beginning of her mandate, confirms us that she intends to maintain the tradition of having the Commissioner in charge of consumer questions attending whenever possible this event. Thank you very much for your presence here today, Ms Kuneva.

Berlinis also following the tradition of organising the ECD in the country holding the EU Presidency, after Brussels, Madrid, Thessaloniki, Dublin and Vienna.

I would also like to thank the President of the Berlin House of Representatives, Mr Momper, who honours us with his presence here today.

I will leave the detailed analysis of the distance selling of financial services to the eminent experts present.

Consumer of services or goods, an other dimension of our well known European and so discussed European citizen……

The main vehicle for growth and sustainable development.

The thinking citizen who is able and who has the duty to put the rules in the European economy thus gifting it with a responsible, secure, social, environmental, competitive and human face.

The European Economic and Social Committee has produced many Opinions on the different aspects of Financial Services and Distance Contracts.

You will find some of them at your disposal in this room, and of course you will be able to find them also on our website.

Already in 1999, the Committee was asking for improvements in the legislation proposed by the Commission.

Apart from the clarification of many legal expressions, the Committee stressed the need for the rapid development of cross-border consumer redress mechanisms such as those which could be provided by a network of national consumer protection agencies or ombudsmen who would act as conduits and arbitrators in the event of dispute.

The Committee supports the Commission's aim to increase consumer confidence, legal certainty and market efficiency for payment in the Internal Market.

It further welcomes the fact that self-regulation and co-regulation are considered a possible way forward in several areas. Our Committee stresses also the need to provide transparency to consumers.

Taking into consideration that the external dimension of the EU financial services policy is also of paramount importance for its long-term global competitiveness, the Committee vigorously backs efforts to strengthen and deepen regulatory dialogue with the EU's global competitors, such as the United States, Japan, China and India.

Concerning mortgage credit in the EU, the Committee has expressed its views on a series of questions on consumer protection, on legal issues, on mortgage collateral and on the financing of mortgage credit.

And it came to the conclusion that full integration will be difficult in the short term.

In its Opinion on the White Paper on Financial Services Policy 2005-2010, the Committee supported the Commission proposal to devote the next years to the dynamic consideration of the financial services industry by implementing and strengthening current legislation and by simultaneously avoiding excessive regulatory additions, so-called "gold-plating".

The Committee believes that, at this point, it is not possible to establish a single EU supervisory authority that could, in future, promote market integration, but considers it would be useful to recommend that European authorities identify a main supervisory authority, the one situated in the (home) country of the parent company, which would also be entrusted with the task of supervising the activities of subsidiaries and controlled companies situated in other EU Member States.

Furthermore, the Committee endorses the objectives of simplification, codification and a commitment towards clarification with a view to achieving "better regulation" and to this end warmly welcomes the Commission's continued commitment to frequent and open consultation with all stakeholders, and to carrying out impact assessments prior to every new proposal, including the social and environmental dimensions.

The Committee has shown the usefulness of action in the area of U.C.I.T.S. [Undertaking for Collective Investment in Transferable Securities] which aims to bring the regulatory standards of unit-linked policies into line with the other financial productand the importance of ensuring access to a bank account and the need to remove obstacles to the mobility of cross-border bank accounts.

The draft Directive on payment services in the internal market has been commented upon by the Committee. Since a properly functioning single market in payment services is a key element in establishing a single market with no internal borders, the Committee supports the establishment of a Single Euro Payments Area (SEPA).

Nevertheless, the Committee is concerned that the target of establishing the SEPA in 2008 could be missed because of an overly cumbersome legal framework.

The EESC feels that the principle of better regulation is only served by focusing on those areas that really do require regulatory action.

Of course, one could not forget other issues which remain unresolved: the security of electronic payments and related factors and the question of access to a current account.

The Committee has the great advantage of putting together all the interests affected by the legislation proposed by the European Commission.

Our opinions reflect therefore what civil society at large broadly thinks about the proposals.

In our Committee the knowledge and expertise that make our opinions valuable contributions to those who will have to take decisions.

I hope this knowledge and expertise will contribute today, once again, to a meaningful and fruitful debate, where not only consumers, but also the other stakeholders of this vast market will have the opportunity to contribute to the improvement of the Single Market, establishing a well-functioning distance selling of financial services.

Ladies and gentlemen, the European Consumer Day was inspired by John Kennedy's declaration, on 15 March 1962, of the four fundamental rights of the consumer:

-The right to safety,

-The right to choose;

-The right to information;

-and the right to be heard.

Last but not at all least, talking about the rights of the citizens, I wish to state this:

If we have a treasure in our house but we are not aware of its existence, its value remains zero.

By that, I wish to say that Communication and information are once more the most important steps towards a successful consumer's policy.

Our citizens must be aware of their rights. They must be aware of the 'potential force' they represent.

Our citizens must know about what they are fighting for. If not they cannot fight or rather consume appropriately.

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