Banks warned about cashing in on the euro

THE Director of Consumer Affairs has called for no bank, charges to be levied, for a fixed period, when the euro is introduced to encourage more people to use the new currency. He also warned the banks that any charges tied into the euro would be viewed by him as a new charge, which must be notified to his office under current consumer legislation.

Mounting a strong attack on the current level of foreign exchange charges yesterday, Mr Fagan said he wasn't sure that the financial institutions across Europe "deserve our sympathies" on the loss of the "opportunity profit" they have made on currency transactions over the years.

Mr Fagan, who regulates transaction charges in the various financial institutions, said he had also told the banks he would not consider any increases in foreign currency charges until the final shape of European Monetary, Union was known.

Euro notes and coins will not be available until 2002, but consumers will be able to open euro accounts and undertake some transactions in the new currency after 1999.

Mr Fagan said: "I believe that, if we are to encourage consumers to engage in euro transactions before 2002, any charges should be small, clear and transparent. Better still there should be a period during which there is no charge in order to encourage the use of Euro transactions" according to Mr Fagan.

Beller again, he added, national authorities could be supported by some type of European legislation, which could possibly prohibit charges on specific transactions over a certain time period.

Mr Fagan said he was also concerned about the impact of EMU on certain consumer contracts,

Also addressing the convention, Mrs Mary Banotti MEP said that the basis underpinning any advance of the European Union is the citizen's confidence in his capacity as a voter, taxpayer, wage-earner, unemployed person and consumer Questions relating to the new currency must be clearly answered, she, said.