Unlocking the consumer protection market

25.7.2013

Question for written answer E-009046-13
to the Commission
Rule 117
Gay Mitchell (PPE)

It has been argued that a new form of consumer protection debt waiver would unlock the consumer protection market and hugely increase the flow of credit into the economy.

ResPublica, a UK-based independent think-tank, contends that banks should be forced to insure loans to SMEs in order to guard against bankruptcies and encourage lending. The think-tank further believes that consumer lending should also be protected with insurance. Various studies in the EU and the US have highlighted how credit contraction has impacted on GDP growth — in the US, a 4% credit contraction has led to a fall in GDP of 0.6%, and, in the EU, a 5% contraction has led to a reduction of 1.6%.

Has the Commission ever considered the impact of an EU-wide form of consumer protection debt waiver, such as insurance, on our economy, and will it set out its position on the matter?

OJ C 88 E, 27/03/2014