Euro mortgage

I support the idea of individuals being free to buy goods and services from whom they like, when they like. So why does this make me feel uneasy?

In a report, the European Commission suggested the creation of a single European mortgage market, claiming that house buyers should be encouraged to shop around in the 25 member states. The EC's Forum Group on Mortgage Credit said an effective single European market for mortgages could mean cheaper loans for all.

Because with the EU nothing is ever about freedom of choice and everything is about harmonisation. Plan of action will probably look something like this.

1. Find the worse and least competitive mortgage market in Europe to use as an example.
2. Conclude that this is the best example in Europe.
3. Research into those unhappy with the choices that they freely made when choosing a mortgage.
4. Conclude that consumers are all making the wrong choices.
5. Write a bunch of useless regulations that protect no-one and force everybody to get a compromise package.
6. Indulge in horse trading between the governments, and change the few decent rules that managed to creep in, in exchange for a deal on agriculture, fishing or support for the arts.
7. Pass directive that does nothing to make the mortgage market more European.
8. Conclude that the plan didn’t work because financial institutions are bad and are screwing their customers.
9. Punish them with tougher regulations.

The result will be no new choice for consumers, but many new regulations for providers. So what was in the report?

Unveiling the report, which concentrated mainly on plans to introduce uniform mortgage legislation, Charlie McCreevy, Ireland's commissioner in charge of the single market, said he would produce proposals for the Euro mortgage by mid 2005.

What did I tell you?