HISTORIC PRESS RELEASE : Reforming Europe in the global economy – delivering the EU Financial Services Action Plan [May 2004]

The press release issued by HM Treasury on 19 May 2004.

HM Treasury, the Financial Services Authority and the Bank of England have today published two documents on the future of financial services in Europe.

The EU Financial Services Action Plan: Delivering the FSAP in the UK, outlines the steps being taken by the UK authorities to implement the large number of EU measures – over 20 – that are likely to affect the financial sector over the next three to four years.

The second document, After the Financial Services Action Plan: A new strategic approach, considers what can and should be done to further integrate the Single Market in financial services. It also highlights the success of the UK’s regulatory environment for financial business; recent successes in Europe in negotiating the Investment Services Directive the Transparency Directive and the decision to locate the Committee of European Banking Supervisors in London.

The Chancellor of the Exchequer, Gordon Brown, said:

“To be fully equipped for the global economy all of us must ensure that the new enlarged Europe must become more open, more outward looking, and more flexible, competitive and reforming – in product and capital markets, employment policy, our attitude to taxation, and in monetary and fiscal policy, and trade.

“The financial sector is a key part of the European economy and reform in financial services is essential to economic reform in Europe, to contribute to economic growth and employment.

“Today, we face the challenge of more competitive global markets, in finance especially.  Europe must respond to this challenge to become and remain competitive.  An efficient, competitive and integrated Single Market in Europe is a key element, but it must always recognise that financial markets are global.

“We will support the European Financial Services Action Plan as it improves recognition of financial services providers in insurance, banking and capital markets. “