The Data Protection Regulation proposed by the European Commission contains important elements to facilitate and secure personal data flows within the Single Market. A harmonised level of protection of individual data is an important objective and all stakeholders have generally welcomed this basic principle. However, when putting the regulation proposal in the complex context in which it is to be implemented, some important issues are revealed. The proposal dictates how data is to be used, regardless of the operational context.

Credit reporting addresses the fundamental problem of credit markets: information asymmetry between borrowers and lenders. By providing an efficient mechanism for evaluating risk, accurate credit information enables credit markets to function more effectively and at a lower cost than would otherwise be possible. Regulators and financial market actors therefore increasingly recognise the value of credit-reporting systems for the improved management of credit risk and as a tool to enhance access to credit, thereby contributing to sustainable economic growth and financial sector stability.

In this ECRI Commentary, Elina Pyykkö provides a snapshot of the current state of household credit markets in Europe. She assesses how member states have recovered from the financial crisis by looking at credit markets and other financial indicators. The evidence is used to discuss what grounds the different stages of recovery provide for new EU-wide legislative proposals, in particular the proposed directive on mortgage credit.

Elina Pyykkö is a researcher at the European Credit Research Institute at CEPS.
 

This ECRI Commentary takes a closer look at the mortgage situation of households in Portugal, Italy, Ireland, Greece and Spain – countries whose economic condition have been under the magnifying glass throughout the eurozone debt crisis. The credit markets in these countries have witnessed fast-paced development, with the credit extended to households having increased considerably during recent decades. What will be the impact on average citizens when they start to feel their belts tightened as a result of their government’s insolvency or liquidity problems?

This ECRI Commentary details the latest progress made by the proposed Consumer Credit Directive (CCD) through the legislative process and explains the lingering reservations harboured by some member states towards the controversial initiative. In the process, ECRI researcher Filipa Figueira also attempts to educate the reader on the complicated EU procedure known as co-decision.