The Implications of the New Consumer Credit Directive for EU Credit Market Integration* POSITION PAPER

European consumer credit markets are still highly segmented: they differ in credit culture, composition and regulation. The new Consumer Credit Directive is intended to establish a maximal harmonization within member states to further increase integration. But is the Directive in its proposed version an adequate instrument to achieve this goal? To approach this question, the present position paper provides an overview of consumer credit in European economies and the United States. It discusses research on integration in the U.S. and Europe and highlights characteristic aspects of consumer credit markets. It further proceeds in listing market barriers and reviewing the proposed Consumer Credit Directive according to these insights. *The views expressed in this paper are those of the author and do not reflect the view of the institution the author is affiliated with. This paper has not been commissioned by any non-profit or for-profit organization. ** The author is lecturer and research fellow at the John F. Kennedy Institute of the Free University of Berlin. Freie Universität Berlin John F. Kennedy-Institut Lansstr. 79 14195 Berlin – Germany Nicola Jentzsch Tel. ++49-30-838 5 28 77, Fax ++49-30-838 5 28 85, Mail: [email protected]