Brussels, 09/06/2006 (Agence Europe) - On 7 June, the Commission took two decisions concerning two savings products existing in France: - “A” passbooks and “blue” passbooks. It opens infringement procedure against France because it considers that the special rights granted to three French banks restrict competition on the market. It also extends its inquiry, which aims to enact on the existence of financial over-compensation by the French state to the benefit of Crédit Mutuel, which manages and collects deposits on blue passbook accounts. France has two months in which to respond.
The Commission has decided to send a letter of formal notice against France which grants special rights to the post office, Caisses d'Epargne (savings banks) and Crédit Mutuel for their distribution of A and blue passbooks. It considers these special rights make it less attractive for foreign operators to gain a foothold on the market. Although it recognises that motives of general interest may warrant restrictions to the principles of freedom of establishment and free provision of services, the Commission considers that these special rights are not necessary for attaining the objectives set.
The Commission also extends the scope of review procedure launched against Crédit Mutuel for its savings deposit activities on blue passbooks, intended for social housing. It considers that the compensation granted to Crédit Mutuel by the French State between 1991 and 2005 could constitute State aid running counter to the rules set out in the Treaty. Early 2005, the EU's Court of First Instance had cancelled a 2002 Commission decision in which it called on Crédit Mutuel to reimburse €300 million to the French State (see EUROPE 8869 and 8129).
Distributed by only three French banks, the A and blue passbooks are tax-free financial products intended to develop savings and finance social housing. These banks transfer the sums collected at the Caisse des Dépôts et Consignations, in exchange for an intermediation commission.