Summary

The objectives of the Financial Services Action Plan are clear: deep, liquid European Capital Markets; and removal of barriers to cross border retail financial services with a high level of consumer protection. Since its inception, the Lisbon Agenda has set an overarching aim of creating the most innovative, dynamic, knowledge-based economy in the world. Financial services provision will underpin this. There is talk of a new reality following from the events of 11th September, Enron and AIB. The temptation to 'do something' needs to be set against the longer term and over-riding objectives of the FSAP and Lisbon. The mid-term review highlighted the need for swift progress and picked out a number of specific initiatives to be implemented this year. These and others were also identified at the Barcelona Council meeting which followed. There are a number of themes which should influence developments going forward, beyond specific legislative initiatives already in train. For example: the need to make the Lamfalussy process work in terms of the level and quality of consultation, the danger of over regulation and the need for flexibility; the desirability of keeping the Lisbon and FSAP objectives in mind when considering regulatory and legislative initiatives; the differences which exist between wholesale and retail markets; how supervisory co-operation (an issue specifically identified in the FSAP) can be developed; externally generated regulatory initiatives (Basel) and the way these should be implemented in the EU.

for full text in pdf format

THE FINANCIAL SERVICES ACTION PLAN

Background

The Commission produced its Financial Services Action Plan (FSAP) Communication on 11th May 1999 [Com(1999)232] . This encompassed a mixture of proposed new legislation, amending legislation, Commission Communications and Recommendations all within an 'Optimal Timeframe' for completion by 2005 - later amended to 2003 for wholesale capital market integration.