The European Commission says it has dropped charges against a number of Dutch and Belgian banks in its investigation into currency exchange fees charged within the euro zone.

Last week the Commission dropped charges against Ulster Bank, which announced it was to cut its charges.

Commission spokeswoman Ms Amelia Torres yesterday named the Dutch and Belgian banks as ABN Amro Fortis Bank, GWK, ING, Postbank in the Netherlands and ABN Amro Belgium, BBL and Caisse Privee Banque, the last two being units of ING in Belgium.

In a statement the Commission said its decision had been prompted by the banks individually deciding to lower their fees considerably for the general public and provide the service free of charge later this year.

"In doing this, the banks are setting prices independently from other banks in the Netherlands and Belgium which the Commission suspects of fixing cash conversion tariffs," it said.

"More importantly, this will provide a cheaper, competitive service for customers ahead of the summer holiday period."

The investigation into more than 100 banks in seven countries, including the Republic, was sparked by concern that high fees were being charged for changing euro zone currencies, such as deutschmarks for French francs, even though their exchange rates had been irrevocably fixed since the introduction of the euro in January 1999.

The problem will disappear from next January when euro notes and coins enter into circulation.

"We took the view that it was better to have an immediate and concrete benefit for the consumer rather than pursue the proceedings," Ms Torres said.

"The bottom line is it's better to have benefits for the consumer now than a benefit for EU coffers four or five years down the road."

The Commission last week similarly ended its inquiry against Germany's Bayerische Landesbank Girozentrale and Ulster Bank, owned by Royal Bank of Scotland, after they agreed to abolish minimum fees.