European Commission initiatives for financial education Conference “Financial education: the present and prospects for the future” 30 April 2009, Vilnius Daniel Kosicki MARKT/G1 – Financial Services Policy

Outline Background Communication on Financial Education Commission initiatives Financial education on EU agenda

Financial Education in the EU – Background 2005: included in the White Paper on Financial Services Policy ( ): Commission committed to promoting best practice, and potentially facilitating joint projects 2007 March: Commission’s high level conference on Increasing Financial Capability 2007 May: included in the Green Paper on Retail Financial Services, as element in “empowering consumers” 2007 November: repeated in the Single Market Review (communication Single Market for 21st century Europe)

Commission Communication on Financial Education To promote financial education across EU: Importance and benefits of financial education Basic principles for provision of high-quality financial education schemes New Commission’s initiatives COM(2007)808 of 18 December 2007

Commission Communication on Financial Education 1.Availability at all stages of life 2.Targeting to meet the specific needs of consumers 3.Inclusion in the school curriculum 4.Raising general awareness on financial issues Principles for financial education provision:

Commission Communication on Financial Education 5.Industry-led programs to be fair, transparent and unbiased 6.Empowering the teachers 7.Promoting coordination at national and international level 8.Need for continuous evaluation Principles for financial education provision (continued):

Commission Communication on Financial Education 1.Network of Practitioners - EGFE 2.New module of Dolceta: providing tools for school teachers 3.Online database of financial education schemes and research in the EU - EDFE 4.Patronage to public and private actors organising financial education events and conferences The Commission initiatives:

Expert Group on Financial Education (EGFE) To (1) exchange best practices and (2) advise the Commission 25 members selected from over 100 candidates (industry, public sector, consumer organisations, academia). The list published on the COM website Experts acting in a personal capacity (no formal link to institutions or organisations) Six meetings planned during a 3 year mandate. Chair and secretariat by the Commission. The second meeting was held on 28 April in Brussels Observers invited from MARKT/H3, SANCO, EAC, EMPL, FIN-USE, UNI-Europa Finance

Expert Group on Financial Education (EGFE) - 2 Topics proposed for discussion by EGFE: National strategies for financial education (1st meeting) Financial crisis’ impact on financial education providers (2 nd meeting) Financial education at school How to educate consumers? Preparing for retirement Challenges for the industry (e.g. sales vs advice conflict) Role of the EU and evaluation of COM initiatives

Dolceta Module 7: Financial Literacy – Tools for Teachers To provide materials for teachers to facilitate inclusion of financial literacy in lesson programmes Translated and adapted to circumstances for all MS – for voluntary use Sponsor: SANCO in cooperation with MARKT Contractor: EUCEN, Network of over 200 universities in 43 countries Expert and Design Teams: developing the content National Development Teams: adaptations. Started in April ’08. Publication planned for early 2010.

European Database for Financial Education (EDFE) Online “reference library” of financial education schemes and research in EU Member States by all stakeholders Information categorised by various criteria: –provider –geographical base –target audience –method of delivery Fully searchable & regularly updated by registered users Published on the Europa website in January 2009: ( Currently about 260 schemes. 7 from Lithuania.

European Commission patronage Information Note on patronage published on COM website (under the Communication) Offered to national/regional conferences and other events which give visibility and impetus to the financial education issues Honorary support including a message, the right to use the Commission emblem, participation whenever possible No financial support possible at this stage Applications to be addressed directly to DG Internal Market & Services, Unit G1, taking account of the principles outlined in the Commission Communication and including the necessary details.

Financial education on EU agenda Council Conclusions – adopted by Ecofin on 14 May 2008 EP Resolution Protecting the consumer: improving consumer education and awareness as regards credit of 18 November 2008 –Based on report by Iliana Malinova Iotova (IMCO, PSE-BG)

Financial education is above all a competence of the Member States – they should work out their national strategies Implementation of the initiatives announced in the Commission’s Communication Evaluation and reflection on future policy by 2010 Conclusions

Daniel Kosicki European Commission DG Internal Market and Services Unit G1 - Financial Services Policy Tel.: +32 (0) Fax: +32 (0) Contact