Out-Law / Your Daily Need-To-Know

Fourteen months before the introduction of euro-denominated notes and coins, the European Commission has today announced that it is this week investigating problems associated with cross-border payments.

Frits Bolkestein, the Commissioner responsible for the Internal Market, will stress at a meeting this week that it is the Commission's ultimate objective to ensure that there is no difference between domestic payments (made in a Member State) and cross-border payments.

The Commission says that improvements are necessary to the operation of payment systems and at a meeting in Brussels on 9th November, various speakers will debate how this might best be done.

According to the Commission, technical systems are currently the biggest block to cheaper transfers. A study by the Commission showed that at the end of 1999 the average cost of making a cross-border payment of €100 was €17. The Commission says that several improvements are being developed such as the creation of an International Banking Account Number or an International Payment Instruction.

The meeting will also explore the future for electronic payment. The Commission comments that there is currently no reliable, secure, efficient, practical and cheap way of paying on the internet.

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