| Author (Person) | McLauchlin, Anna |
|---|---|
| Series Title | European Voice |
| Series Details | Vol.11, No.40, 10.11.05 |
| Publication Date | 10/11/2005 |
| Content Type | News |
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By Anna McLauchlin Date: 10/11/05 Banks are only one part of the chain in developing a competitive payments market, says the chairman of the European Payments Council (EPC), Gerard Hartsink. Governments and the private sector must also play their part in promoting the new framework. The EPC, which was formed in 2002, has 64 banking members from the EU as well as Norway and Switzerland. In September this year, the council launched a framework for payment cards that would make them inter-operable throughout the eurozone by 2008. At the same time, it adopted two 'rulebooks' on direct debits and credit transfers in euros, on which banks will be encouraged to base their debit and credit systems, by the same deadline. After 2008, it is hoped, banks from both inside and outside the eurozone will migrate to use the new pan-EU system for payments. But, Hartsink warned, this dream would only become a reality if public authorities and corporate treasurers commit themselves to using the system. "Public authorities must put their money where their mouths are," he said. "If banks are to invest in these new payment services, it is absolutely critical that their customers, such as corporates and government agencies are ambitious and will buy them." Such commitment, he added, had "not yet been made clear" by public authorities. The banking industry was committed to reaching its 2008 deadline, he explained, but warned that delays to the European Commission's new legal framework (NLF) could hold up proceedings. The NLF will provide the legal basis for a harmonised EU payments system in the areas of liability and consumer protection. "The final wording of the NLF is relevant for some aspects of our two rulebooks on direct debit and credit transfer," he said. "If there is a hiccup in the European Parliament, which can often be the case, this will have an impact on how quickly we can achieve our goal." Hartsink said that recent pressure from Internal Market Commissioner Charlie McCreevy had "undoubtedly had an influence" on the EPC's progress. In the summer, McCreevy threatened the industry with obligatory targets for opening up their payments systems. "There is always tension between the wish list of public authorities and the supply side of financial institutions," he said. "But at the same time, the rulebooks published in September were announced in our March declaration, so the intention was already there." Comments by Gerard Hartsink, Chairman of the European Payments Council (EPC), who said that banks were only one part of the chain in developing a competitive payments market, and that governments and the private sector also had to play their part in promoting the new framework. Article is part of a European Voice Special Report, 'A Single European Payments Area'. |
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| Source Link | Link to Main Source http://www.european-voice.com/ |
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| Subject Categories | Business and Industry, Internal Markets |
| Countries / Regions | Europe |
