Background
The current phase of SEPA commenced in 2002 when the European Payments Council was formed. But the history goes back much further:
History of SEPA – over 40 years in gestation
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1966 | European Commission expert group report “The Development of a European Capital Market” stressed the need for convergence and harmonization in financial regulation. |
Mar 1972 | Creation of the Monetary Snake – to limit the movement between the exchange rates within Europe |
Oct 1972 | Abortive attempt to create European Monetary Cooperation Fund (EMCF) to support the snake |
Dec 1978 | European Monetary System had as one of its 3 objectives to prepare European monetary unification through co-operation |
Feb 1986 | Single European Act became essentially a new constitution for Europe and included the following aspirations
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April 1989 | The Delors Report. Jaques Delores foresaw full financial integration within Europe as a precondition for a single European currency |
Dec 1991 | Treaty of Maastricht set out a plan and timetable for European Monetary Union |
Dec 1995 | Final agreement on timetable for new currency. The name “Euro” was adopted |
Feb 1997 | EU directive 97/5 laid down minimum standards for cross-border credit transfers within Europe |
1998 | European Council of Brussels – Confirmed the 11 countries (Greece decided later to participate) which would form the Eurozone, created the European Central Bank (ECB), and created the European System of Central Banks(ESCB), the latter being a linkage between national central banks and the ECB. |
Jan 1999 | Launch of the Euro currency |
Dec 2001 | Regulation 2560/2001 limited the bank charges on cross-border credit transfers and card transactions to the same charge as domestic transactions of a similar type |
Jan 2002 | Euro notes and coin introduced |
Mar 2002 | Banks meet to develop strategy – outcome is “Euroland – Our single payment area” |
Jun 2002 | European Payments Council (EPC) formed to progress single payments area strategy |
Dec 2005 | After a long consultation period, EU adopted a proposal for a directive on a New Legal Framework for payments in the internal market. To date (Feb 2007), this directive has not passed into legislation |
Dec 2005 | National banking associations submit national plans for SEPA to EPC |
Dec 2006 | SEPA schemes rulebooks publicly available for Credit Transfer, Direct Debit. Also the framework for the PEACH clearing |
Jan 2007 | ECB 4th review “Towards a single Euro payments area” |
Jan 2007 | Use of IBAN and BIC became compulsory for cross-border euro credit transfers |
Mar 2007 | Draft Payment Systems Directive agreed by EU Finance Ministers to establish a new legal framework for payments |
Dec 2007 | Final text of Payment Systems Directive issued |
Sep 2009 | Payment Services Directive transposed into Irish law as European Communities (Payment Services) Regulations 2009 (S.I. No. 383 of 2009) and became effective Nov 1 2009 |
Nov 2010 | All banks in Europe should be capable of processing incoming SEPA Direct Debits |
Dec 2010 | EU Commission published draft regulation proposing an end-date for implementation of specified SEPA initiatives |