SINGLE CURRENCY: COMMISSION HUNTS EXCESSIVE BANK CHARGES FOR EURO EXCHANGES.

Summary:The European Commission announced on February 5 that it was putting new pressure on banks to ease the retail use of the Euro and to reduce excessive bank charges. It has set a deadline of March 31, 1999 for banks to publish additional information giving a complete picture of bank charges before and after the introduction of the single currency for exchange of Euro-zone banknotes, cross border cheques, transfers and card payments. It has also set up a hotline for the public to report non-compliance with the rules on exchange (such as failure to use the official conversion rate or to provide the required information). The Commission intends to present a Communication on the future of payment systems in the Single Market in the Spring.

The moves are backed by Commissioners Mario Monti (Single Market and Financial Services), Yves-Thibault de Silguy (Economic, Monetary and Financial Affairs) and Emma Bonino (consumer policy). Following widespread media reports and individual complaints about charges for exchanging Euro-zone banknotes, Commissioner Monti has already written to the Presidents of the European Banking Federation, the European Savings Banks Group and the European Group of Co-operative Banks to ask for clarification. Despite some evidence of progress, criticisms remain in many Member States on banking charges for cross-border...