Brussels, 18/07/2011 (Agence Europe) - Thirty million adults in the European Union do not have a current account and this number includes 6 to 7 million who would like a bank account but have been rejected by banks. On Monday 18 July, EU Internal Market Commissioner Michel Barnier unveiled a non-binding recommendation from the European Commission on the provision of basic bank accounts. He said this was a social insertion issue for vulnerable individuals and also a matter of facilitating the mobility of students and workers.
Although Barnier himself believes that legislation is required, the Commission prefers the route of a simple recommendation at this stage. He said that the encouragement method had been decided upon, but if this did not work, then he would be able to introduce binding measures in a year's time.
Under the recommendation, any consumers living in the EU would be able to open and use a basic bank account irrespective of their financial situation and even if they live in a different member state from the one the bank is located in. This would enable account holders to receive, deposit and transfer cash but they would not be granted an overdraft facility. Such basic bank accounts would have to be provided at a reasonable cost, with each member state deciding for itself on the amount that can be charged. Member states will have six months to provide the Commission with information about the measures introduced in their country.
“The Commission missed a golden opportunity to do something tangible for European citizens. Withdrawing this planned piece of legislation is bad news for millions of Europeans,” said the secretary general of the European Consumers' Bureau (BEUC), Monique Goyens, in a press release, adding: “The snail's pace of approach to giving people access to a bank account contradicts the EU's efforts to expand e-commerce.”
Bank charges. Barnier gave banks until 15 September this year to draw up satisfactory suggestions about how to increase openness on bank charges, saying that the Commission wanted all consumers to have easily understood and comparable information about bank charges, suggesting the drawing up of a code of conduct and threatening to introduce legislation if the banks continue to drag their feet over the issue. (M.B./transl.fl)