Rome risks formal warning over restrictions on debt agencies

Date: 24/01/02

By Peter Chapman

ITALY could face EU action over the bureaucratic burden it puts on debt-collectors who want to do business in the country.

Financial services chief Frits Bolkestein said there were 'doubts' over the legality of an Italian regime that forces collection agencies to register with authorities close to their head offices, and restricts their activities to the same area.

Bolkestein said the rules - which apply to Italian firms as well as others from across the Union - appeared to breach the EU's treaty, which gives citizens the right to establish themselves and provide services in any of the 15 member states.

Bolkestein said Rome had failed to respond to a letter demanding information on the issue and the Commission would decide soon whether to send a formal warning - the first step on the way to the European Court of Justice.

Italy could face EU action over the bureaucratic burden it puts on debt-collectors who want to do business in the country.