Brussels to let private banks enter French savings regime

The European Commission has asked France to amend its legislation within nine months in order to eliminate the obstacles to the internal market rules represented by the special rights to distribute savings books ("livret A" and "livret bleu") granted to Banque Postale, Caisses d’Epargne and Crédit Mutuel. This request, based on Article 86(3) of the Treaty, follows its examination of the replies by France and all the interested parties to the letter of formal notice sent by the Commission in June 2006 (cf. IP/06/746). The Commission considers that the special distribution rights in question constitute a restriction which is incompatible with Community law and are not essential to ensure the satisfactory provision of the two services of general economic interest cited by the French authorities, namely the financing of social housing and the accessibility of basic banking services. The requested change to the method of distributing the savings books does not jeopardise the tasks of general interest with which they are associated and does not entail any deterioration in the way in which these savings books operate for individuals.

European Commission: Press Release, IP/07/641: Freedom of establishment and freedom to provide services: the Commission calls on France to end special rights to distribute savings books ("livret A" and "livret bleu") http://europa.eu/rapid/pressReleasesAction.do?reference=IP/07/641&format=HTML&aged=0&language=EN&guiLanguage=en

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