Vulcan Consulting | The latest EU developments

EU reaches deal on facilitating money transfers within 10 seconds

Earlier this week, the Council of the European Union and the European Parliament reached a provisional agreement on the instant payments proposal. It is a plan which aims to improve the availability of instant payment options in euro for consumers and businesses across the European Union and wider European Economic Area.

Once in force, the proposal aims to bolster the strategic autonomy of the European economic and financial sectors by reducing reliance on third-country financial infrastructure. The initiative will facilitate seamless transfers within ten seconds, regardless of business hours, member state and respective standard currencies.

Under the agreed rules, payment service providers, including banks, will be obligated to provide instant payment services in euro. Said providers must ensure that charges for instant payments do not exceed those for standard transfers. The European institutions hope that requirement this will help promote affordability and accessibility for both individual citizens and businesses.

Additionally, the agreement requires that instant payment providers verify the accuracy of the beneficiary’s International Bank Account Number (IBAN) and name. This verification process will improve the security of payments by alerting users to potential errors or fraud. Under the agreement, this measure shall also be applied to standard payment transfers.

After a transitional period, the agreement will also oblige that payment and e-money institutions take part in the instant transfer system. However, this will be subject to additional safeguards which mitigate potential risksarising from their inclusion.

The rollout of the instant payments system will at first take place in the Eurozone. Thereafter, the system will be expanded to non-Euro jurisdictions, which need extra time to prepare for the move.

To ensure transparency, the Council and Parliament have also included a review clause which requires thatthe Commission evaluate the development of credit charges. This is an effort aimed at ensuring effective regulatory oversight.

The initiative aligns with the wider efforts aimed at establishing a robust Capital Markets Union. The proposal builds on the 2012 Single Euro Payments Area (SEPA) regulation by  addressing provisions for instant credit transfers in euro. Its primary objectives include universal availability, affordability, increased trust, and the streamlined processing of euro payments. By meeting these goals, the EU aims to increase economic growth across the region.

New proposals aim to revolutionise sustainable freight transport

This week, the European Commission has taken a significant step toward making freight transport more sustainable by introducing a groundbreaking proposal that focuses on promoting intermodal freight. This initiative, a part of the Greening Freight Package, strives to enhance the competitiveness of intermodal freight – the practice of transporting goods using multiple modes of transport – in comparison to road-only transport.

Intermodal transport is a concept that combines the flexibility of road transport, which handles the first and last legs of a journey, with the environmental performance of rail, inland waterways, or short sea shipping for the main part of the journey. During intermodal operations, a single loading unit, such as a container, is seamlessly moved across various modes of transport, which can include trucks, trains, barges, ships, or even planes. This approach not only makes freight transport more flexible but also significantly reduces its environmental impact.

The key goal of this proposal is to make intermodal transport more efficient and competitive by refocusing support on operations that reduce negative externalities by at least 40% when compared to road-only operations for the same routes. To facilitate this, digital platforms under the electronic freight transport information Regulation (eFTI) will be established, providing a tool for transport organisers to assess their eligibility for support. This will make it easier for stakeholders to submit necessary information in an accessible manner, with accredited digital systems handling the rest of the process.

In addition to these measures, the proposal introduces exemptions from temporary driving bans, such as weekend restrictions, for combined transport. This adjustment is aimed at optimising the utilisation of terminal and other infrastructure capacities, allowing trucks to reach terminals based on the departure times of trains, barges, or ships. This coordinated approach will improve overall efficiency and reduce delays.

The proposal also sets an ambitious competitiveness target for Member States, requiring them to reduce the average door-to-door cost of combined transport operations by at least 10% within the next seven years. Member States are also obligated to establish the necessary policies to achieve this goal. To enhance transparency and information sharing, a new EU gateway for intermodal transport information will be created, providing links to national policy frameworks and practical details about the measures in place. Additionally, terminal operators will be required to provide essential information on their EU transshipment terminals, ensuring that businesses and transport organisers have the necessary details to make informed decisions regarding their logistics.

All in all, this proposal marks a pivotal moment in the European Union’s efforts to achieve its Green Deal goals. It acknowledges the need to update the outdated Combined Transport Directive, which has not been revised since 1992, and introduces a comprehensive framework for promoting a shift toward more sustainable and eco-friendly freight transport options. In terms of next steps, the proposal is set to undergo consideration by the European Parliament and the Council in the standard legislative procedure, with high expectations of it making a substantial impact on the future of freight transport across the EU.

For more information, please contact the Vulcan Consulting Team.

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