Proposal for a Regulation of the European Parliament and of the Council on cross-border payments in euro
/* COM/2001/0439 final - COD 2001/0174 */
OJ C 270E , 25.9.2001, p. 270–272 (ES, DA, DE, EL, EN, FR, IT, NL, PT, FI, SV)
|Bilingual display: DA DE EL EN ES FI FR IT NL PT SV|
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on cross-border payments in euro
(presented by the Commission)
1. general remarks
On 1 January 2002, much of Europe will undergo the greatest currency changeover in its history. It is a massive logistical challenge too. Around 15 billion notes and 50 billion coins in euro must be introduced in the space of a few weeks replacing a broadly equivalent quantity of national coins and notes in 12 different countries, for the benefit of around 300 million European citizens .
This introduction of coins and notes is the last stage of a process initiated on 1 January 1999 with the creation of the euro. But while the citizen will become aware that the single currency exists as euro coins and notes start to appear, other means of payment will appear unchanged: sending euro payments cross-border will cost much more than transferring euro within national boundaries. The creation of the single currency has not been accompanied by the establishment of a single-payment area.
The purpose of this Regulation is to reduce bank charges for cross-border payments in euro to a level in line with those applying at national level. This delivers on a longstanding policy of the European Commission. Most importantly, it will at last enable individual European consumers to become active participants in the Internal Market, ensuring that individual consumers are able to benefit from increased price transparency and choice.
In 1990, the Commission published its first general document on the operation of payment systems within the framework of the Internal Market . This document reported that while payment systems function relatively well inside each country, they function badly on a cross-border basis. This "border effect" in payment systems prevents the consumer from benefiting from the opportunities of the single Internal Market. At that date, the euro was still at the project stage. In 2002, the situation will be transformed.
 "The payment in the European Internal Market", COM(90) 447 final of 26 September 1990.
In 1994, the Commission published a Communication on the cross-border transfer of funds which contained two important texts: a preliminary draft proposal for a Directive which subsequently became Directive 97/5/EC and a draft Communication on the application of competition rules to this type of transfers .
 COM(94) 436 final of 18 September 1994.
In January 2000, the Commission published a new Communication entitled "Retail payments in the Internal Market", the conclusion of which was:
"This Communication has indicated the actions to be undertaken, within the area of retail payments, in order to meet the needs - and expectations - of citizens and SMEs for a "single-payment area": i.e. so they can make small-value payments across borders nearly as easily and cheaply as they can within their own countries. Both the private and public sector have their respective roles to play. The Commission will keep the Parliament and the Council regularly informed of progress on the issues discussed in this Communication."
The Commission adopted on 3 April 2001 a Communication  on the introduction of euro coins and notes. This document raised as a major concern the fact that cross-border payments in euro will remain more expensive than national payments. The Communication indicates: "The Commission will consider using all the instruments at its disposal and will take all the steps necessary to ensure that the costs of cross-border transactions are brought more closely into line with the costs of domestic transactions on 1 January 2002".
 COM(2001) 190 final of 3 April 2001.
3. Euro-payment area: the concept
Each country has built its own system of retail payments. These various national systems function rather well. But as soon as a small-value payment is made cross-border, the costs for the customer become disproportionate. Various studies show that in 2001, the average price of a cross-border transfer of EUR 100 in the Union remains higher than EUR 20 .
In 2002, the consumer will also discover that the use of an ATM ("Automated Teller Machine") in his country costs almost nothing, but is very expensive as soon as he crosses a border. However, in both cases, this involves the same notes in euro. This situation holds regardless of the means of payment. In each of the 12 existing national payment areas, the cost of the operation is the same if the payment crosses a street in the capital or goes between cities or towns. This principle of a single-payment area must be established for the euro area: the euro must drive the transition from 12 national areas to a single "domestic European area".
4. Proposal in the Regulation
The Regulation proposes that the price of a cross-border payment operation in euro within the European Union should not be different from that of national operations (the removal of the border effect). The objective is to improve the functioning of the Internal Market by encouraging the technical operators of the market to establish the infrastructure, the standards and the commercial agreements essential for the smooth operation of a single-payment area. This alignment of charges for cross-border payments with those for payments at national level should not lead to a higher level of charges for payments at national level.
The Regulation contains a number of measures intended to facilitate these operations, such as the obligatory use of certain standards or the prohibition of declaratory obligations.
Description of the Articles
Article 1 - scope
The Regulation applies to charges for all non-cash means of cross-border payments in euro within the Internal Market. It establishes the principle that banks can no longer levy different charges for cross-border payments in euro and for corresponding payments at national level.
The Regulation applies to cross-border payments up to EUR 50 000, but not beyond. This threshold has also been used in the cross-border credit transfers Directive and aims at covering retail payments. The Regulation therefore applies to the majority of payments effected by consumers and SMEs.
Article 2 - Definitions
Article 2 defines institutions as they are the main addressees of the Regulation: they are the institutions which execute cross-border payments and which levy charges for their services.
Furthermore, Article 2 defines the different payment instruments as well as the payment transactions covered by the Regulation. These are all non-cash, instantly due, means of payment.
The definition of a cheque is given as being a means of payment under the scope of the Geneva Convention of 1931. These means of payment become cross-border when the two banks involved are located in two different countries.
None of these definitions, except that for cheques, have been newly introduced by the Regulation; the definitions used are consistent with those in existing Community legal acts.
Article 3 - Charges for Cross-Border Payments
Article 3 lays down the principle of equal charges. The provision does not prevent banks from charging for their payment services, or even from applying different charges for different customers; it stipulates, however, that a given customer must be charged the same fees for his payments in euro up to EUR 50 000 within the Internal Market, irrespective of whether these payments are made cross-border or at national level. In the case of payment by card, the fees paid by the retailer and the fees paid by the cardholder are both covered. The amount has to be the same as for a national operation.
The Regulation applies to payments in euro. The alignment of charges for all payments effected in the Single Currency will strengthen confidence of the European citizens in the euro.
The Regulation applies to all Member States of the European Union, not just to Members of the euro-zone. This wider scope might positively affect public opinion in Member States which are presently not (yet) members of the euro-zone.
The Regulation will take effect as from 1 January 2002 for electronic payment transactions. In practice, it is mainly payment by card and withdrawal from automatic teller machines.
For cross-border credit transfers and cheques, it is technically very difficult to meet the 1 January 2002 deadline: a transitional period to align prices is granted for these payments: charges for cross-border and domestic payments have to be set at the same level by 1 January 2003 at the latest for payments up to EUR 50 000.
Article 4 - Transparency of Charges
Article 4 stipulates that customers have to receive prior information from the institution carrying out the payment as to what charges are applied for cross-border and domestic payments. This will allow customers to immediately compare charges. Any modification of tariffs will also have to be communicated to the customer.
As the Regulation also applies to cross-border payments in euro from or to Member States which are not part of the euro-zone, Article 4 also contains obligations to give information concerning the charges in connection with currency exchange. This will allow distinction to be made between charges due to the currency exchange and between charges levied for the payment as such.
Article 5 - Measures for facilitating cross-border payments
The main reason for the high charges for cross-border payments is the lack of automation and the need for costly manual handling due to technical and administrative reasons. The Regulation therefore introduces certain measures in order to provide the conditions for fully automated straight-through-processed payments.
The International Bank Account Number (IBAN) and the Bank Identifier Code (BIC) constitute an important element towards such fully automated payments, similar to the degree of automation existing at national level. IBAN and BIC are new international ISO-standards for cross-border payments. They allow automated payments, without any costly and time-consuming manual handling.
Article 5 stipulates the obligation of institutions to communicate to their customers IBAN and BIC. However, the Regulation also obliges customers to use these new standards and to provide - upon request - IBAN and BIC before ordering a cross-border credit transfer.
Both the first and the second paragraphs are facultative since not all consumers necessarily make cross-border payments and since there may be other efficient cross-border payment systems which do not rely on IBAN and BIC. Nevertheless, it seems to be appropriate to require imperatively that customer's statements of accounts should always mention the IBAN and BIC or that commercial companies which target markets in other Member States should inform the customers about the IBAN and BIC, e.g. on their website, invoice or in a similar way, in order to facilitate cross-border payments.
Article 6 - Obligations of the Member States
Another reason for costly manual handling and hence high charges has been the obligation imposed on institutions by Member States to report cross-border payments for balance-of-payment statistics. Article 6 of the Regulation removes these reporting obligations for cross-border payments within the scope of the Regulation up to EUR 12 500 by 1 January 2002. From 1 January 2004, this amount becomes EUR 50 000.
Different Member States impose different minimum information obligations for the execution of cross-border payments (e.g. obligations in respect to the data of a beneficiary, most request the indication of the account number and others also the indication of the address; obligation to indicate the address of the receiving bank). These differences contribute to difficulties and time-consuming manual interventions. Article 6 stipulates the harmonisation of the necessary minimum information.
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on cross-border payments in euro
THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community, and in particular Article 95 (1) thereof,
Having regard to the proposal from the Commission ,
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Having regard to the opinion of the Economic and Social Committee ,
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Having regard to the opinion of the European Central Bank ,
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Acting in accordance with the procedure laid down in Article 251 of the Treaty ,
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(1) Directive 97/5/EC of the European Parliament and the Council of 27 January 1997 on cross-border credit transfers  sought to improve cross-border credit transfer services and notably their efficiency. The aim was to enable in particular consumers and small and medium-sized enterprises to make credit transfers rapidly, reliably and cheaply from one part of the Community to another. Such credit transfers and cross-border payments in general are still extremely expensive compared to payments at national level.
 OJ L 43, 14.2.1997, p. 25.
(2) The Commission's Communication to the European Parliament and Council of 31 January 2000 on Retail Payments in the Internal Market , together with the European Parliament Resolutions of 26 October 2000 on the Commission Communication and of 4 July 2001 on means to assist economic actors in switching to the euro, and the reports of the European Central Bank of September 1999 and September 2000 on improving cross-border payment services have each underlined the urgent need for effective improvements in this field.
 COM(2000) 36 final.
(3) The Commission's Communication to the European Parliament, the Council, the Economic and Social Committee, the Committee of the Regions and the European Central Bank of 3 April 2001 on the preparations for the introduction of euro notes and coins  announces that the Commission will consider using all the instruments at its disposal and will take all the steps necessary to ensure that the costs of cross-border transactions are brought more closely into line with the costs of domestic transactions on 1 January 2002.
 COM(2001) 190 final.
(4) The volume of cross-border payments is growing steadily as completion of the Internal Market takes place. In this area without borders, payments have been further facilitated by the introduction of the euro.
(5) If the level of charges for cross-border payments in euro remains higher than the level of charges for internal payments, the confidence of consumers and businesses in the euro will be damaged. Therefore, in order to facilitate the functioning of the internal market, it is necessary to ensure that charges for cross-border payments in euro are treated in the same way as charges for payments made in euro within a Member State.
(6) For cross-border payments in euro up to EUR 50 000 which can be executed electronically, the principle of equal charges should apply from 1 January 2002. In order to allow the implementation of the necessary infrastructure and conditions, a transitional period for cross-border credit transfers and cheques should apply until 1 January 2003.
(7) In order to allow a customer to assess the cost of a cross-border payment, it is necessary that he is informed of the charges applied and any modification to them. The same holds for the case that a currency other than the euro is involved in the cross-border euro-payment transaction.
(8) It is also important to provide for improvements to facilitate the execution of cross-border payments by payment institutions. In this respect, standardisation should be promoted as regards, in particular, the use of the International Bank Account Number (IBAN) and the Bank Identifier Code (BIC) necessary for automated processing of cross-border credit transfers. The widest use of these codes is considered to be essential. In addition, other measures which entail extra costs should be removed in order to lower the charges to customers for cross-border payments,
HAVE ADOPTED THIS REGULATION:
Article 1 Subject matter and scope
This Regulation lays down rules on cross-border payments in euro in order to ensure that charges for those payments are the same as those for payments in euro involving no crossing of borders.
It shall apply to cross-border payments in euro up to EUR 50 000 within the Community.
Article 2 Definitions
For the purposes of this Regulation, the following definitions shall apply:
(a) "cross-border payments" means:
(i) "cross-border credit transfers" being transactions carried out on the initiative of an originator via an institution or its branch in one Member State, with a view to making available an amount of money to a beneficiary at an institution or its branch in another Member State; the originator and the beneficiary may be one and the same person,
(ii) "cross-border electronic payment transactions" being:
- the transfers of funds effected by means of an electronic payment instrument, other than those ordered and executed by institutions,
- cash withdrawals by means of an electronic payment instrument and the loading (and unloading) of an electronic money instrument at cash dispensing machines and automated teller machines at the premises of the issuer or an institution under contract to accept the payment instrument,
(iii) "cross-border cheques" being those cheques defined in the Geneva Convention providing uniform laws for cheques of 19 March 1931 and used for cross-border transactions within the Community;
(b) "electronic payment instrument" means a remote access payment instrument and electronic money instrument that enables its holder to effect one or more electronic payment transactions;
(c) "remote access payment instrument" means an instrument enabling a holder to access funds held on his/her account at an institution, whereby payment may be made to a payee and normally requires a personal identification code and/or any other similar proof of identity. The remote access payment instrument includes in particular payment cards (whether credit, debit, deferred debit or charge cards) and cards having phone- and home-banking applications;
(d) "electronic money instrument" means a reloadable payment instrument, whether a stored-value card or a computer memory, on which value units are stored electronically;
(e) "institution" means any natural or legal person which, by way of business, executes cross-border payments;
(f) "charges levied" means any charge levied by an institution and linked to a cross-border payment operation, excluding those levied to cover a foreign exchange transaction.
Article 3 Charges for cross-border payments
1. With effect from 1 January 2002, charges levied by an institution in respect of cross-border electronic payment transactions in euro up to EUR 50 000 shall be the same as the charges levied by the same institution in respect of corresponding payments transacted within the Member State in which the establishment of that institution executing the cross-border electronic payment transaction is located.
2. With effect from 1 January 2003 at the latest, charges levied by an institution in respect of cross-border credit transfers and cross-border cheques in euro up to EUR 50 000 shall be the same as the charges levied by the same institution in respect of corresponding credit transfers and cheques transacted within the Member State in which the establishment of that institution executing the cross-border transfer or cross-border cheque is located.
Article 4 Transparency of charges
1. An institution shall make available to its customers in a readily comprehensible form, either in writing or, where appropriate, by electronic means, prior information on the charges levied for cross-border payments and for payments effected within the Member State in which its establishment is located.
2. Any modification of the charges shall be communicated in the same way as indicated in paragraph 1 in advance of the date of application.
3. Where institutions levy charges for exchanging currencies into and from euro, institutions shall provide their customers with:
(a) prior information on the exchange charges which they propose to apply; and
(b) specific information on the exchange charges which have been applied.
Article 5 Measures for facilitating cross-border payments
1. An institution shall, upon request, communicate to a customer his International Bank Account Number (IBAN) and that institution's Bank Identifier Code (BIC).
2. For cross-border credit transfers, a customer shall, upon request, communicate to the institution carrying out the transfer the IBAN of the beneficiary and the BIC of the beneficiary's institution.
3. An institution shall indicate on statements of account of each customer his IBAN and the institution's BIC.
4. Any supplier intending to sell goods and services cross-border to customers in the Community shall communicate his IBAN and the BIC of his institution.
Obligations of the Member States
1. Member States shall remove with effect from 1 January 2002 at the latest any national reporting obligations for cross-border payments up to EUR 12 500 for balance-of-payment statistics. With effect from 1 January 2004, the amount shall be increased to EUR 50 000.
2. Member States shall remove with effect from 1 January 2002 at the latest any national obligations as to the minimum information concerning the data of the beneficiary which prevent automation of payment execution.
Entry into force
This Regulation shall enter into force on the third day following that of its publication in the Official Journal of the European Communities.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels,
For the European Parliament For the Council
The President The President
IMPACT ASSESSMENT FORM THE IMPACT OF THE PROPOSAL ON BUSINESS, WITH SPECIAL REFERENCE TO SMALL AND MEDIUM-SIZED ENTREPRISES (SMEs)
Title: Proposal for a Regulation of the European Parliament and the Council on cross-border payments in euro
Reference No: COM(2001) 439 final
1. Taking account of the principle of subsidiarity, why is Community legislation necessary in this area and what are its main aims-
In order to derive maximum benefit from the single market and monetary union, it is vital that private individuals and businesses are in a position to make payments between two Union countries with the same speed, reliability and costs as for domestic payments in Member States. On 1 January 2002, euro notes and coins will be introduced in 12 Union countries. A single currency will then exist in notes and coins, but there may still be large price differences for non-cash payments between national operations and cross-border operations.
The aim of the proposal is to speed up the alignment of charges between national operations and cross-border operations. The starting point is the observation that national payment systems work well, but cross-border systems not so well. For that reason, the proposed regulation involves three types of measures:
- A general principle of non-discrimination in charges between a national operation and a cross-border operation in euro. This principle is the application of the concept of a single market for payments: the existence or non-existence of a border must not change anything within a single market.
- Measures concerning information to customers about existing charges and any changes to them. It is important that users of payment systems be clearly informed of the cost of operations so that they can choose the one that suits them best. This will put downward pressure on charges for these services but will above all help to make payment systems more efficient.
- Measures to promote automated payment systems. While national systems are largely automated, thereby making for very low transaction costs, cross-border systems, especially for bank transfers, are hampered by the absence of standards or by the obligation to comply with divergent national standards. A series of measures would therefore encourage the use of common standards.
The impact on business
2. Who will be affected by the proposal-
It is important to distinguish between the constraints the proposal places on the banking sector and the benefits it will bring for small businesses which have to make cross-border payments.
- Which sectors of business-
The proposal will apply to banks and other financial institutions providing payment services to the public. These are essentially banking institutions.
- Which sizes of business (what is the concentration of small and medium-sized firms)-
Very few banks or financial institutions providing means of payment for the public may be considered small or medium-sized.
- Are there particular geographical areas of the Community where these businesses are found-
3. What will businesses have to do to comply with the proposal-
Banks and financial institutions will have to speed up their efforts to introduce payment systems that are properly adapted to the single market and the euro area. A great deal of work is already under way, particularly in the area of bank transfers, but the measures will have to be completed by all banking networks much more quickly than initially planned.
4. What economic effects is the proposal likely to have:
- on employment-
- on investment and the creation of new businesses-
- on the competitive position of businesses-
For small businesses a sharp reduction in the charges associated with cross-border payments is an important factor for the development of their transnational activities and their integration in the Internal Market. The same is true of all firms in the craft sector and for the self-employed, in their relations with both suppliers and customers.
5. Does the proposal contain measures to take account of the specific situation of small and medium-sized firms (reduced or different requirements, etc.)-
6. List the organisations which have been consulted about the proposal and outline their main views.
The Commission has been working for many years to establish the most extensive possible dialogue with all of the parties concerned, in order to encourage operators to introduce the structures necessary to improve the workings of the market in means of payment. A number of stages may be distinguished in the development of this policy:
- The Green Paper of September 1990 entitled "Making payments in the internal market" , which spelled out the Commission's aim of making cross-border payments as efficient and inexpensive as national payments.
 COM(90) 447 final.
- The creation in March 1991 of two standing advisory groups on payment systems. The two were merged in 1999. Since their establishment they have met at least three times a year.
- In 1992, the Commission published a working document on the transparency and efficiency of cross-border payments. This contained a programme of measures and signalled the Commission's intention to resort to binding legislation if the objectives were not attained voluntarily.
- In 1994, the Commission adopted a proposal for a Directive on cross-border transfers. This provided a harmonised legal framework intended to improve the overall efficiency of this type of payment. The proposal was adopted as Directive 97/5/EC.
- In 1995, the Commission published a Green Paper on the practical arrangements for the introduction of the single currency . This set the goal of creating a single-payment area which would be as efficient as that for national payments markets. The extensive debate that followed publication of the Green Paper concentrated more on the costs associated with the introduction of the euro than on modifying payment systems.
 COM(95) 333 final, 31.5.1995.
- In 1998, the Council adopted Regulation (EC) No 974/98 which established the euro as the single currency of the participating Member States. This was supplemented by a Recommendation setting out the provisions on bank charges for converting to the euro. This Recommendation was the outcome of the work of a group of experts consisting mainly of representatives of the banking profession.
- In 1999, with the introduction of the euro, the charges that used to be concealed in the exchange rate now became apparent as a result of the use of the conversion rates. The transparency of the charges for cross-border transactions led to numerous complaints. The Commission and the European Central Bank relaunched the debate on setting up payment systems at European level.
- In 2000, the Commission published a new Communication (January) and organised a Round Table (November) to discuss the best ways of automating cross-border payments.
- In 2001, the Commission published a Communication on the practical aspects of the introduction of euro notes and coins, in which it indicated that it could not tolerate the delay in creating a single-payment area.
The proposal for a Regulation was agreed in June 2001 and has not been the subject of formal consultations. The banking community has indicated its opposition in principle to any price control measure. It has, however, put forward suggestions for inclusion on the list of measures intended to promote the automation of transfer systems. Consumer organisations support fully the Commission's proposal.
At the Internal Market, Consumer Policy and Tourism Council of 30/31 May 2001, a Commission proposal for a Regulation was welcomed. At the meeting of the FSPG (Financial Services Policy Group) on 19 June 2001, the broad outlines of the Regulation were presented to experts from the Member States. While the experts fully endorse the idea of creating a single-payment area, a majority consider that the Regulation is premature.
Policy area(s): Internal Market
Activit(y/ies): EP and Council Regulation on cross-border payments in euro
Title of action: NEGOTIATING AND MONITORING OF THE IMPLEMENTATION OF THE REGULATION ON BANK CROSS-BORDER PAYMENTS IN EURO
1. BUDGET LINE(S) + HEADING(S)
2. OVERALL FIGURES
Implications for the Commission relate to the negotiations of the Regulation and in particular to the follow-up of the practical implementation by the payment industry.
2.1. Total allocation for action (Part B): EUR million for commitment
2.2. Period of application:
The Regulation will apply throughout the Internal Market once it will have been adopted. The Internal Market principle in respect to the level of charges should be valid forever. Monitoring of the follow-up and respect of the dispositions of the Regulation will need to be done very intensively notably from the outset.
Overall multiannual estimate on expenditure:
(a) Schedule of commitment appropriations/payment appropriations (financial intervention) (see point 6.1.1)
(b) Technical and administrative assistance and support expenditure (see point 6.1.2)
(c) Overall financial impact of human resources and other administrative expenditure (see point 7)
2.3. |X| Proposal compatible with the existing financial programming
| | This proposal will entail reprogramming of the relevant heading in the financial perspective
| | This may entail application of the provisions of the Interinstitutional Agreement.
2.4. Compatibility with financial programming and financial perspective 
 For further information, see separate explanatory note.
|X| No financial implications (involves technical aspects regarding implementation of a measure)
| | Financial impact - the effect on revenue is as follows:
3. BUDGET CHARACTERISTICS
4. LEGAL BASIS
Article 95 of the EC Treaty.
5. DESCRIPTION AND GROUNDS
5.1. Need for Community intervention2
5.1.1. Objectives pursued
The Regulation establishes the principle that the price of a cross-border payment operation in euro within the European Union should not be different from that of national operations (the removal of the barrier effect). The objective is to create confidence in the euro at the moment when there is a single currency but not a single-payment area. The persistence of high charges for cross-border payment transactions (presently still higher that EUR 20 on average) is unacceptable in the Internal Market and for European citizens. Despite the Commission's call on the payment industry to change, there are no signs that this happens. Therefore, the Commission decided to take rigorous action via the Regulation to enforce alignment of such charges. After adoption of the Regulation, it is necessary to monitor and assess its application in the market and to proceed, in case, with the emerging complaints and infringement procedures.
5.1.2. Measures taken in connection with ex ante evaluation
5.1.3. Measures taken following ex post evaluation
5.2. Action envisaged and budget intervention arrangements
After the successful negotiation and adoption of the Regulation, it will be necessary to establish a system of monitoring and evaluation of the situation of cross-border payment charges in the Internal Market. Inspection visits to Member States payment industry and enquiries will be necessary from time to time. In addition, the number of citizen complaints will increase substantially and will have to be dealt with. Infringement cases are very likely to occur.
6. FINANCIAL IMPACT
6.1. Total financial impact on Part B (over the entire programming period)
(Calculation of costs by measure envisaged in Part B (over the entire programming period).
7. IMPACT ON STAFF AND ADMINISTRATIVE E|X|PENDITURE
The necessary additional administrative resources should ensure the correct application of the principle of the regulation in the market. The payment industry will have to provide transparency of their prices to the general public and the Commission so that verification can be done by the Commission and enforced through infringement procedures. The allocation of supplementary resources is in particular necessary because there are many players in the payment industry (about 10 000 banks) and many complaints will come from European citizens and SMEs.
The effective mobilisation of the necessary administrative resources will result from the annual Commission Decision relating to the allocation of the resources, taking account in particular of manpower and of the additional amounts which will have been granted by the budgetary authority. However, the resources necessary for the regulation were not taken into account at the time of the establishment of the PDB 2002.
7.1. Impact on human resources
7.2. Overall financial impact of human resources
The amounts are total expenditure for 12 months.
7.3. Other administrative expenditure deriving from the action
The amounts are total expenditure for 12 months.
I. Annual total (7.2 + 7.3)
II. Duration of action
III. Total cost of action (I x II) //
EUR 237 000
EUR 237 000
8. FOLLOW-UP AND EVALUATION
There is no definite period for action.
There will be a review in 2004 in order to assess the functioning of the Regulation and the monitoring of the practical application. The needs for the application in the candidate countries in the enlargement will be examined as well.
8.1. Follow-up arrangements
8.2. Arrangements and schedule for the planned evaluation
9. ANTI-FRAUD MEASURES
Given the nature of the action, no specific fraud prevention measures are necessary.