Brussels, 10/05/2007 (Agence Europe) - On Thursday 10 May, the European Commission asked France to amend its legislation within nine months in order to eliminate the obstacles to the internal market rules represented by the special rights to distribute savings books ("livret A" and "livret bleu") granted to Banque Postale, Caisses d'Epargne and Crédit Mutuel. This request, based on Article 86(3) of the Treaty, follows its examination of the replies by France and all the interested parties to the letter of formal notice sent by the Commission in June 2006 (see EUROPE 9208). The "livret A" and the "livret bleu" are savings products to which the state has granted tax-exemption.
The Commission considers that the special distribution rights in question constitute a restriction which is incompatible with Community law, and are not essential to ensure the satisfactory provision of the two services of general economic interest cited by the French authorities, namely the financing of social housing and the accessibility of basic banking services. The requested change to the method of distributing the savings books does not jeopardise the tasks of general interest with which they are associated, and does not entail any deterioration in the way in which these savings books operate for individuals.
On the contrary, according to a Commission press release, opening up the method of distribution of the "livret A" and "livret bleu" will make it possible, at no extra cost to the public purse, to put an end to the infringements observed while at the same time preserving the services of general economic interest concerned. Speaking to press, the spokesman for Competition Commissioner Neelie Kroes explained the nature of the competition distortion: the savings books do not necessarily constitute, of themselves, a lucrative market, but the opportunity of offering additional services allows the banks concerned to attract more customers. This opportunity should be open to the other banks which are just as able to offer the relevant services.
He also stressed that the timing of the investigation was entirely down to the internal operation of the Commission; it was, he said, purely coincidental that it came at the same time as the French president was leaving office. France will now have nine months to bring its legislation into line with this decision, a timescale deemed “necessary to put the amendments in place” but one which did “not leave too much time” for the contentious system to continue. Even if France chooses to appeal to the European Court, it will still have to bring its legislation into line, because such an appeal would have no suspensive effect on the decision. (cd)