If a newly proposed EC measure advances in Parliament, the European Union (EU) Single Market may soon enjoy an increase of foreign customers and, by extension, be of great benefit to Norwegian citizens and business.
March 28, the European Commission (EC) proposed squashing exorbitant, cross border tender transaction fees facing non-EU nations. The EC plan would negate present fee structures and instead, apply simple fractional transaction duty against all currency transactions.
UNIVERSAL FEES
Valdis Dombrovskis, EU VP of Financial Stability, Services & Capital Markets Union gave detailed explanation behind the EC legislative fee proposal, saying; ‘We want all Europeans to have access to cross-border, euro transfers at the same low cost that they pay for local, domestic money transfers. (If enacted) cross-border euro money transfers (from non-EU nations) would cost the same wherever you are.’
The EC proposal also dictates that the new regulations be incorporated within the European Economic Area (EEA) Agreement (thus banishing expensive, cross border money transaction fees from Norway and the other EEA member nations).
€2 FEE SENDS €1
At present, transferring euros from outside the EU to inside the EU or vice versa generates large transaction fees. Some non-EU nations face €24 fees when trying to transfer as little as €10 into the EU.
Wednesday’s EC legislative draft also promises greater accountability & lower cost to consumers seeking conversion between different national monetary units. EC’s language directs the European Banking Authority to draft standards mandating full disclosure of currency conversion fees to consumers.
FREE TRADE
European Commission calculations indicate that business and private sectors would enjoy €1B savings after fee abolition, directly benefiting free trade.
The EC legislative cross-border, tender transfer fee negation proposal now faces adoption through the EU’s European Parliament.
© NTB Scanpix / #Norway Today
