Officials of leading Irish banks have appeared before the European Commission to answer allegations of price-fixing made by the competition commissioner.
Mr Mario Monti claimed last July to have evidence that the banks breached EU competition rules in their foreign exchange charges for euro-zone currencies.
The banks, officials of which appeared last week in private hearings before the Commission, were: AIB, Bank of Ireland, Irish Life & Permanent, Ulster Bank, National Irish Bank, TSB and ACCBank. Mr Monti has warned the banks they face severe sanctions if the allegations are proved.
Bank of Ireland's spokesman said the bank rejected Mr Monti's allegations. Spokespeople for the other institutions would say no more than that they had attended.
Mr Monti's cartel charges are serious. The investigation was mounted after raids by Commission officials on a number of banks and on replies to detailed questionnaires sent to most eurozone banks.
A Commission spokeswoman stressed no conclusion was likely until early next year.
Mr Monti made similar allegations against banks in Germany, the Netherlands, Finland, Portugal and Belgium. In all, the allegations concern about 120 institutions.
Statements of objection sent to these banks provided for the right of defence of the banks, including at a hearing, without prejudice to the outcome of the investigations. Such statements are legal steps in proceedings under Article 81 of the Treaty of Rome, which bans cartels and other concerted practices. Confirmation of the allegations would mean that banks undermined the introduction of the euro and harmed consumers, Mr Monti has said.
The Commission's spokeswoman said Portuguese banks would appear before the investigation this week. They will be followed by German banks next week. Finnish banks appeared a week before their Irish counterparts.
Mr Monti was anxious to conclude the investigation as soon as possible because the common currency would circulate from the beginning of 2002, she said.
Banks no longer face exchange rate risks on euro-zone currencies because the exchange rates were fixed on January 1st, 1999.
Yet in two statements this summer, Mr Monti said the Commission's investigation showed that banks and national associations may have colluded to keep commissions at a high level or control their decrease.
