German financial sector calls for further financial market integration in Europe

• Efficient payment systems in Germany as a model for pan-European systems
• Initiative Finanzstandort Deutschland (IFD) presents its vision of integrated financial markets in Europe to European MPs
• German financial sector supports financial market integration based on fair competitive conditions

Brussels, 14 June 2005 – The Initiative Finanzstandort Deutschland (IFD), whose members include, in addition to representatives from all sectors of the banking industry, insurance companies, the KfW Banking Group, Deutsche Börse, the Bundesbank and the Federal Ministry of Finance, outlined at a reception for European MPs and high-level European Commission staff how it sees further financial market integration in Europe.

“Especially after the most recent setbacks on ratification of the European constitution, we feel it is essential to press ahead with the work on a single market for financial services”, said Mr Josef Ackermann, chairman of Deutsche Bank and one of the founders of the IFD, at the reception. “An integrated market for financial services based on fair competitive conditions brings benefits for companies and consumers. It makes Europe positively ‘experiencable’.“

The IFD sees financial market integration in Europe as a source of considerable growth potential from which national economies in particular can benefit and believes that Germany can play a leading role in shaping the single financial market. The German financial sector has made great progress in meeting the challenges of the past few years and is now back on a growth path. This is shown by the IFD’s Financial Market Report, a comprehensive analysis of Germany as a financial centre, presented by the IFD economists in Frankfurt on 13 June 2005 (available at: www.finanzstandort.de)

By drafting guiding principles for regulation of the single financial market, the IFD has already made a major contribution to the ongoing development of the required legal framework. It believes that further potential can be realised in the European financial sector by taking well-directed steps to create equal market access boosting competition.

Because of the size of the national economy, the modern technical infrastructure and the highly qualified workforce, the German financial sector is ideally placed to help shape new standards in Europe. Particularly in the payments sector, clients benefit from its highly efficient, low-cost processes.

The reception for European MPs and Commission staff is designed to follow up the discussion with Internal Market Commissioner Charlie McCreevy, who visited the IFD in Frankfurt last December. Both sides are keen to continue the dialogue in the future.

About the Initiative Finanzstandort Deutschland
The IFD was set up in May 2003 as an action group bringing together institutions from all sectors of the German banking industry, insurance companies, Deutsche Börse, the Bundesbank, the Federal Ministry of Finance and the central associations of the German financial sector. Its aim is to develop specific market-related measures and products that benefit clients and companies. The IFD also contributes to the political discussion with decision-makers at various levels. It features market practitioners from all areas of the financial sector and specialists from four big financial-sector associations, the Bundesbank and the Federal Ministry of Finance. Experts from competing institutions pool their knowledge and expertise in IFD task forces in order to develop practical, market-driven solutions.

The IFD’s members:
Allianz Group Dresdner Bank, Bayerische Landesbank, Federal Ministry of Finance, Commerzbank, DekaBank, Deutsche Bank, Bundesbank, DZ BANK, Deutsche Börse Group, HypoVereinsbank, KfW Banking Group, Morgan Stanley, Münchener Rück, Association of German Banks, Association of German Cooperative Banks, Association of German Savings Banks, German Insurance Association.

The PR steering group:
Christian Achilles, Association of German Savings Banks +49 30 20 225 5100
Matthias Fritton, KfW Banking Group, +49 69 7431 2687
Reinhard Fröhlich, DZ BANK, +49 69 7447 2382
Heiner Herkenhoff, Association of German Banks, +49 30 1663 1200
Peter Kulmburg, Bayerische Landesbank, +49 89 2171 21300
Rainer Küppers, Münchener-Rück-Gruppe, +49 89 3891 2504
Ulrich Porwollik, Dresdner Bank +49 69 263 50605
Dr. Detlev Rahmsdorf, Deutsche Bank, +49 69 91036424
Martin Roth, HVB Group, +49 89 378 25801
Roland Klein, +49 89 599 458 122 or +49 172 899 6262