| New EU Legislation to allow banking and finance in all member countries |
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A new legislation could make it easier for you to withdraw cash from anywhere in the EU. The European commission is mulling over plans to enable customers to open bank accounts in other EU countries. This legislation will entitle you to open savings plans, mortgages, insurance and pension accounts in the EU country of your choice.
Charlie McCreevy, the internal market commissioner has said that new laws could be drawn up so as to allow companies to provide cross-border services. He added that the commission would only intervene if genuine economic benefits to industry, markets and consumers.
But it is a well-known fact that opening a second bank account in a different country is easier said than done, it takes weeks and weeks of dilly-dallying until you are finally allotted an account. Officials say that these concerns are particularly prevalent in students who often need money at hand for academic purposes.
Jim Murray, director of BEUC, a pan-European consumer body, feels that this move is going to be a long, long process, not just a question of a few directives. "It's difficult enough because of money-laundering rules but current accounts and savings accounts should be feasible. When it comes to mortgages it may be more difficult because of varying tax relief," he warned.
Mr. McCreevy though feels otherwise, "It's in everybody's interest that a consumer in Brussels or Paris can open a bank account in Copenhagen if that's where the best deal is." he says. Stephen Sklaroff, deputy director general of the ABI, seconded these views by saying, "The European consumer has a lot to gain from open competition within the EU between financial services companies. Consumers have little to gain from more regulation."
But then it is felt that such legislation will not only open up the common market but also introduce nefarious equations into the business. These are genuine concerns for the policymakers to keep in mind before formulating any concrete plans in this direction.
Posted
on : Sat, 07 May 2005 20:00 GMT | Banking News
By : Pippa Fielding
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