United Europe – this is something we know and appreciate especially when traveling and paying abroad. No border controls and no currency conversion. But in some aspects of daily life, Europe is not at all unified and that is when it comes, for example, to take insurance and financial services from abroad in this country – currently an impossibility or at least associated with considerable adversity! But that should change according to the will of the European Commission in the future! In the future, it will be possible across countries within the EU to conclude car insurance in the neighboring country or to take out a loan there
Credit in EU countries often cheaper
The first objective of the EU Commission is that consumers can easily carry out these and other processes, at least when moving to other EU countries. In addition to insurance, the EU Commission has mortgage loans, other loans, payments and bank accounts in mind. For more choice on financial services, Commissioner Jonathan Hill pleaded for and launched a public consultation to show how a more pan-European market for consumers can be achieved.
The size of the price differences in the individual Member States is illustrated by the example of car insurances: while in Italy the annual premium is around 440 euros, in Germany it is 200 euros less. And in the Czech Republic, it is just one hundred euros. Significant differences exist, for example, in the interest rates on home loans: the Hungarians pay 8.5 percent, the British good three percent and the Finns not even two percent.
Break down hurdles for financial services
But if the market were more open, many people would be able to get a better deal across borders – and conversely, companies could offer their services to a wider clientele, argues Jonathan Hill. So far, only three in a hundred consumers would have purchased banking products such as credit cards or checking accounts from another EU country, and cross-border loans account for less than one percent of the total in the euro area. Almost 14 million EU citizens live in a different country than their original one. Not least for them, the barriers to the financial services market are to be removed.
Citizens and businesses can contribute their ideas until March of next year.