From cross-border payments to clearing and settlement, finance expert and astute politician Charlie McCreevy has made his mark by increasing efficiency in the EU’s financial services industry.

Charlie McCreevy began his career in financial services as a chartered accountant. In 1977, he was elected to the Irish Parliament, and since 1992, he has held various Irish government cabinet posts, including Minister for Social Welfare, Tourism and Finance. But on the world stage, he is known for his current role as EU Commissioner for the Internal Market and Services.

If you were to ask his colleagues, most people would describe McCreevy as a doer. For evidence of that, look no further than his recent stance on improving price transparency and increasing competition in clearing and settlement. In an address to the European Parliament in July 2006, he established a list of objectives and a timetable for accomplishing this. By June 30, 2007, the financial services industry will come up with a roadmap to set the conditions for interoperability between exchanges, central counter-parties and central securities depositories. By December 30, 2007, there will be a separate accounting of the main clearing and settlement activities as well as price unbundling of key services.

McCreevy admits it’s a challenge for the industry to achieve these goals within the given timeframe. Yet he gives clear warning that, if the industry does not step up to the plate, regulators have a range of measures at their disposal to force change.

Another of McCreevy’s traits is his ability to build consensus. He has demonstrated a knack for obtaining agreement on which projects best serve the needs of the member states and how to implement them, but he remains modest about his accomplishments. “I never comment on my greatest achievement,” he says. “I leave it for others to judge what my greatest achievement or failure might be. I developed this attitude when I entered political life.”

Much of McCreevy’s success lies in his ability to focus on what is important and champion only those projects that clearly have merit. In fact, he has spoken against introducing more legislation until the internal market is efficient throughout all 25 member states. “As far as new legislation is concerned, my view is that less is more,” he says. “A few good proposals add far more value than many weak ones.”

So what are his priorities for the next few years? He would like to see member states refrain from protectionism and predatory actions within the EU. And once fragmentation has given way to efficiency, he wants to see the EU play a leading role in larger initiatives such as unifying international accounting standards.

Quick facts on Charlie McCreevy

By Sherree Decovny Photo European Community, 2006

MarketView 2006:3