Retail Financial Services (Green Paper)

The European Commission wants to remove barriers to cross-border retail financial services and has submitted a Green Paper on the subject. The portability plans set out therein, particularly for life insurance and private health insurance, are, however, in cep's view, unrealistic.


The removal of barriers to the cross-border provision or take-up of retail financial services will result in more intensive competition, greater innovation and lower prices. The planned rules on reducing termination costs, however, will not necessarily lead to lower prices for all customers in the case of long term contracts. In fact, they will result in faithful customers being forced to subsidise the more fickle customers.