Finance firms push for EU freedom

Gordon Brown want the report's findings to be presented at the next Ecofin meeting

The financial services industry is calling for the European Union to standardise the way products like pensions, insurance and mortgages are sold in member countries.

A report by the European Financial Services Round Table - which represents the industry - recommends a major shake up of cross-border areas including customer complaints, tax issues, pensions regulations and accounting methods.

The report says a single market for financial services would reduce industry costs, which could lead to lower prices for consumers.

The British Chancellor, Gordon Brown, is pressing for the report's conclusions to be presented at the Ecofin meeting of EU finance ministers on 5 March.

'Shocking differences'

Pehr Gyllenhammar, CGNU chairman and one of the business leaders behind the report told the BBC's World Business Report change was needed.

He said while larger companies can set up subsidiaries to work in local markets, this is too expensive for small to medium size firms and they are therefore restricted to their home markets.

Mr Gyllenhammer said increased cross-border activity would benefit consumers as the deals currently available in different countries vary considerably.

"In some you have a difference in what they charge borrowers that is quite shocking", he said.

"We have numbers that demonstrate in some countries you could pay 2% more... than in neighbouring countries."