ECOFIN Council Conclusions: Annual Progress Report on the State of SEP...

ECOFIN Council Conclusions: Annual Progress Report on the State of SEPA Migration

European Commission reports on migration by public authorities

26 October 10

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Public administrations: need for greater urgency to move to

In the first Annual Progress Report on migration prepared by DG Internal Market and Services, particular attention has been paid to migration by public administrations because of the crucial role they can play in achieving a critical mass of payments that is needed to accelerate migration to . This part of the report is based on the first Commission services' survey on preparedness and migration by public administrations launched in June 2008. As a key 'user group' of electronic payments, public administrations initiate and receive millions of transactions every day. In the euro area, the public sector represents around 45 per cent of the GDP and around 20 per cent of all payment transactions, primarily credit transfers and direct debits.

The analysis of the first survey results is based on data received from individual public administrations and covers the period from 28 January to end of August 2008. Results of the survey refer only to Credit Transfer uptake, as the Direct Debit will be launched in November 2009. Overall, 88 public administrations accounting for more than one billion credit transfers and representing around 5 per cent of all credit transfers executed in the payments market annually replied to the survey.

The results of the survey show that there seems to be no general sense of urgency to move to . Only 11 of 27 Member States (Austria, Belgium, Cyprus, Ireland, Spain, Finland, France, Italy, Malta, Poland and Slovenia) have developed a national migration plan for public administrations. 10 out of 16 euro area Member States are covered by a national migration plan for public administrations, while 6 euro area Member States (Germany, Greece, Luxembourg, Netherlands, Portugal and Slovakia) have not reported any coordination of migration by public administrations.

Euro area public administrations already taking steps to implement standards

The survey shows that 42 per cent of the responding public administrations have so far not received any credit transfer offer from their bank. 54 per cent of the administrations participating in the survey indicated that they use IBAN and BIC domestically for their credit transfers, a key prerequisite for migration to . In the vast majority of Member States, public administrations still submit payment instructions to their bank using a national file format for credit transfers. However, many public administrations, covering a large set of Member States, mainly in the euro area, do have a transition plan to fully switch from national format to ISO 20022 XML over the course of the next two years.

Public administrations in 11 Member States (euro area: Austria, Belgium, Cyprus, Germany, Finland, France, Malta, Netherlands and Slovenia; non-euro area: Romania and United Kingdom) have defined a starting date for migrating to . Public administrations in 11 Member States replied that they have not yet fixed a credit transfer starting date (euro area: Greece, Spain, Ireland and Slovakia; non-euro area: Czech Republic, Bulgaria, Estonia, Latvia, Lithuania, Poland and Sweden). Public administrations in the remaining Member States did not disclose this information in their survey responses.

Public administrations in only four Members States have set an end-date for legacy credit transfers

Administrations in only 4 Member States have defined an end date after which legacy credit transfers will become obsolete. Public administrations in 15 Member States replied that they have not yet fixed a cut-off date for legacy credit transfers (euro area: Austria, Cyprus, Germany, Greece, Spain, Ireland, Malta, Portugal, Slovenia and Slovakia; non-euro area: Czech Republic, Latvia, Lithuania, Sweden and United Kingdom). Public administrations in the remaining Member States have not provided this information in their survey responses.

To secure early adoption by public authorities, the Commission plans to repeat the survey on public administrations' migration in the future and aims to publish a regular scoreboard measuring progress achieved by public administrations in order to encourage best practice by public authorities.

Zuzana Kalivodova serves as Seconded National Expert with the European Commission, DG Internal Market & Services.


The report can be found at the following Commission website: click to follow link.

Related articles in this Newsletter:

Missing in Action, mostly. Public sector lags behind in SEPA implementation

On Bananas and the Integration of Euro Payments. The SEPA commitment of governments

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