Strasbourg, 24/04/2007 (Agence Europe) - As expected, on Tuesday 24 April, the European Parliament adopted the text on the draft directive on payment services on which the Ecofin Council had reached preliminary agreement at the end of March (see EUROPE 9395). A single amendment, brought forward by the EPP-ED, PES and ALDE political groups, sealed the inter-institutional agreement and opened the way for the definitive adoption of the draft directive in first reading. “The compromise text is not perfect but it lets us lay the foundations for an internal payments market,” rapporteur Jean-Paul Gauzès (EPP-ED, France) said during the plenary session debate on Monday. He welcomed the EP's influence on Council discussions, following the compromise reached among the political groups in the economic and monetary affairs committee last September (see EUROPE 9265). Gianni Pittella (PES, Italy) said the EP's “decisive role” showed the institution's greater vitality. In a joint statement, the Commission and the European Central Bank (ECB) welcomed the EP vote. The new rules will apply form 1 November 2009.
Mr Gauzès listed the points on which “the Council came closer to the European Parliament”: the reduction of the scope of payment in euro or in other currencies carried out inside the EU, restriction of the activity of payment institutions to legal entities, the implementation of strict authorisation procedures, the introduction of initial and outgoing capital, restriction of funds for hybrid establishments, limiting the granting of credit to 12 months and banning “revolving” credit and the introduction of a measure indicating that granting credit must not infringe national rules, particularly with regard to consumer credit. Other important points related to the possibility for “micro businesses enjoy the same level of protection as consumers in terms of information” and a “clear division of responsibilities between the various payment services suppliers in the event a transaction being wrongly carried out”.
Mr Gauzès did not take on board the GUE/NGL amendment aimed at increasing personal data protection and inherent in payment services. He sought to gain assurances on this point from the Commission and the Council. French Socialist MEP Pervenche Berès also called for guarantees so as “not” to be “in the same situation as with the SWIFT system” when the single euro payment area was set up. Internal Market Commissioner Charlie McCreevy spoke of the Commission's response to the EP resolution on the SWIFT affair (see EUROPE 9368). Although calling for vigilance in this area, he, nonetheless, felt that “limiting data exchange would contradict the directive on data protection”. When questioned, the Council declined to respond.
“It is good to have managed to ensure a very high level of protection for consumers” when it comes to banks' information and accountability in the event of fraudulent transactions and falsified payment cards, said Mia De Vits (PES, Belgium). “Am I pleased with the package? Not really. Am I in favour? Yes”, said British Liberal Sharon Bowles. She would have liked more competition in order to bring prices of payment services down. She went on to say she felt that the capital requirements are “a repeat of the mistake already made with the directive on electronic trade”. John Whittacker (ID, British) expressed his “fear” that the directive - like the MiFID (markets in financial instruments) directive - would result in costs that are greater than the advantages for banking establishments. (mb)