91999E0129

WRITTEN QUESTION E-0129/99

by Leonie van Bladel (UPE) to the Council

(3 February 1999)

Subject: Cost of introducing the euro

1. Is the Council aware that, following the introduction of the euro, banks are charging their customers Fl 5 per transaction when they withdraw money at cashpoints abroad?

2. Is it also aware that banks are charging their customers Fl 0,50 per transaction when they withdraw money at cashpoints in their own country?

3. Does it realise that, in particular owing to the Fl 5 charge abroad, bank customers are being forced to withdraw larger amounts in order to cut costs, as the charge for withdrawing Fl 500 once is Fl 5, whilst the charge for withdrawing Fl 100 five times is Fl 25?

4. Does it agree that this state of affairs is not conducive to ensuring the safety of members of the public, given that they withdraw larger amounts abroad in order to cut costs?

5. Is it prepared, in view of the uniformity of the charges made by the banks, to investigate whether the banks have formed a cartel or are abusing a monopoly?

6. If so, what action will it take to remedy this situation?

Joint answer

to Written Questions E-4027/98 and E-0129/99

(29 March 1999)

As the Honourable Parliamentarian may be aware, on 23 April 1998 the Commission adopted a recommendation addressed to Member States and to banks and their associations concerning banking charges for conversion to the euro.

In this recommendation the Commission considered that banks are not legally entitled to charge:

- for the conversion of incoming payments denominated in the euro unit or in the national currency unit during the transitional period,

- for the conversion of accounts from the national currency unit to the euro unit at the end of the transitional period,

- a different fee for services denominated in the euro unit from that charged for otherwise identical services denominated in the national currency unit.

For other transactions banks are in principle entitled, as for other services they provide, to levy a charge as long as they respect the rules of the Treaty and notably its competition rules.

Ad point 5 and 6: According to Article 89 of the Treaty, it is for the Commission to ensure compliance with the principles of free competition enshrined in the Treaty and notably its Articles 85 and 86 (prohibition of agreements or concerted practices restricting or distorting competition and of abuses of dominant positions).