The Council has confirmed an agreement with the European Parliament on a draft regulation on technical requirements for credit transfers and direct debit transactions in euros. This agreement with the Parliament paves the way for adoption of the regulation in first reading.

The agreement reached between the European Parliament and the Council on the single euro payments area means that the draft regulation could be adopted in first reading. This proposal set up the technical requirements for credit transfers and direct debit transactions in euros, therefore it constitutes a key element of SEPA, the single euro payments area. In fact, it is an EU-wide integrated market for credit transfers and direct debits with no distinction between national and cross-border payments. SEPA system was launched in February 2008.

The draft regulation sets a migration end-date for credit transfers and direct debits respectively, introducing a set of common standards and general technical requirements. It will contribute to the simplification of payment processes, since the regulation will reduce fragmentation and foster competition in the European payments market. For consumers, who are becoming increasingly mobile in both professional and private terms, standardised cross-border payments will eliminate the need to maintain several payment accounts in different countries. For payment service providers and payment processors, economies of scale and common standards achieved under SEPA will make payments across the EU much more efficient.

The payments industry has already committed itself to SEPA, creating the conditions for increased competition, economies of scale and a downward pressure on prices, whilst ensuring continued security and reliability for users.