Macro Uploading and Supranational Institutions: Formulating the Financial Services Action Plan (FSAP)

Abstract

The Economic and Monetary Union (EMU) intensified the rationale for an integrated financial services sector. Research conducted for the European Commission identified significant benefits for consumers, businesses and investors. This indicated that EU-wide Gross Domestic Product (GDP) will increase by 1.1 per cent or €130 b at 2002 prices over 10–15 years. Employment will increase by 0.5 per cent and integrated equity markets will reduce the price of equity capital by 0.5 per cent with corporate bond finance falling by 0.4 per cent. Given these savings the EU and member states have stepped up their activities in their pursuit of a single market in financial services over the last five years. Indeed, following macro uploading and European integration procedures the Financial Services Action Plan (FSAP) provided the basis for further micro uploading, discussion and debate, and the eventual downloading of EU legislation into domestic domains.