| Author (Person) | McLauchlin, Anna |
|---|---|
| Series Title | European Voice |
| Series Details | Vol.12, No.1, 12.1.06 |
| Publication Date | 12/01/2006 |
| Content Type | News |
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By Anna McLauchlin Date: 12/01/06 German Christian Democrat MEP Kurt Lechner has been appointed Parliament's draftsman for revised EU rules on granting financial credit to consumers, which is expected to move to a second reading in 2006. Lechner replaces Joachim Wuermeling, who left the European Parliament at the end of 2005 to join the new German government. The team working on the issue remains largely unchanged and the credit industry is hoping that it will be able to strike up a similarly constructive relationship with Lechner. "Wuermeling was a good listener, very communicative and unbiased about the issues, so we hope Lechner will take the same approach," said one banking representative. But others have expr-essed reservations, notably because Lechner, unlike Wuermeling, is not a fluent English speaker. The directive, which has now been revised twice by the European Commission, is currently under the wing of the Austrian presidency, which is expected to make reaching political agreement a priority of the coming six months. Lechner replaces Joachim Wuermeling, who left the European Parliament at the end of 2005 to join the new German government. The team working on the issue remains largely unchanged and the credit industry is hoping that it will be able to strike up a similarly constructive relationship with Lechner. "Wuermeling was a good listener, very communicative and unbiased about the issues, so we hope Lechner will take the same approach," said one banking representative. But others have expr-essed reservations, notably because Lechner, unlike Wuermeling, is not a fluent English speaker. The directive, which has now been revised twice by the European Commission, is currently under the wing of the Austrian presidency, which is expected to make reaching political agreement a priority of the coming six months. Some MEPs demanded that, because of revisions and because the first reading was passed in a Parliament drawn from 15 rather than 25 member states, the proposal should be returned for another 'first' reading. But Parliament officials say that this demand has now been dropped. Many of the changes demanded by MEPs at first reading have been taken on board in the new draft. Key ones include focusing on credit of up to _50,000, the total exclusion of mortgages, a 14-day right of withdrawal and the right to repay credit early. The draft would also allow member states more flexibility in adapting some of the rules to their own situation rather than total harmonisation as demanded in the original proposal. European capitals may not be able to reach a decision by June, however, as insiders say that national positions are still very far apart. "The directive tries to group those countries with very highly developed credit markets and those where it is not developed at all under the same hat and this is very difficult," said a spokesman for the European Banking Federation. "I'm not surprised that some banks are still lobbying for the withdrawal of the entire proposal." Article reports on th appointment of German Christian Democrat MEP Kurt Lechner as the European Parliament's draftsman for revised EU rules on granting financial credit to consumers, which was expected to move to a second reading in 2006. |
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| Subject Categories | Business and Industry |
| Countries / Regions | Europe |
