Financial services are an increasingly important sphere of activity within the EC. This sector produces around 7.5 per cent of total EC output (in terms of value added) and also employs over 3 per cent of the Community workforce. Growth in employment in the banking and finance sectors has typically exceeded 10 per cent during the period 1978 to 1985. Given the size and growth of the financial services sector in many European countries during the 1980s it is important that we consider the effects of the 1992 legislative programme. This chapter briefly examines the EC directives and also provides an overview of the benefits that are expected to accrue from completing the internal market in financial services after 1992. (Chapter 12 covers banking in the EC in more detail and analyses the role of large banks up to 1992.)
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References and further reading
- Bank of England Quarterly Bulletin (1989) ‘The single European market: survey of the UK financial services industry’, August, pp. 407–12.Google Scholar
- Cecchini, P. (1988) The European Challenge 1992: The Benefits of a Single Market (Aldershot: Gower).Google Scholar
- Commission of the European Communities (1988) ‘The economics of 1992’, European Economy, vol. 35, March (Brussels: EC).Google Scholar
- Davis, Evan and Smales, Carol (1989) ‘The integration of European financial services’ 1992 Myths and Realities, pp. 91–117, Centre for Business Strategy (London: London Business School).Google Scholar
- UBS-Phillips and Drew (1988) Europe 1992: Breaking Down the Barriers/ Economic and Sector Prospects, edited by D. Fayil and B. Seward, June (London: UBS-Phillips and Drew).Google Scholar