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21/09/2014 - The economic impact of interchange fee regulation - Germany

The economic impact of interchange fee regulation in Germany; a report for Mastercard. Andrew Lilico, Executive Director of Europe Economics and author of the report, said: “The impact of similar legislation around the world provides a clear warning of the need for further scrutiny of the proposed regulations.  The experience in Spain, Australia and the United States has been that consumers have so far paid more in banking fees, but not seen a reduction in prices at the shops. Large retailers appear to gain the most, while small businesses might not enjoy the same reductions in fees, but could pay more for their banking services.     Proposals to regulate commercial cards and separate schemes and card processing are likely to be particularly disruptive. The consequences of legislative interference in interchange fee rates require much more careful examination than they have received up to now. The justification for action is not rigorous enough for an intervention with so many poorly understood risks.”

21/09/2014 - The economic impact of interchange fee regulation - France

The economic impact of interchange fee regulation in France; a report for Mastercard. Andrew Lilico, Executive Director of Europe Economics and author of the report, said: “The impact of similar legislation around the world provides a clear warning of the need for further scrutiny of the proposed regulations.  The experience in Spain, Australia and the United States has been that consumers have so far paid more in banking fees, but not seen a reduction in prices at the shops. Large retailers appear to gain the most, while small businesses might not enjoy the same reductions in fees, but could pay more for their banking services.     Proposals to regulate commercial cards and separate schemes and card processing are likely to be particularly disruptive. The consequences of legislative interference in interchange fee rates require much more careful examination than they have received up to now. The justification for action is not rigorous enough for an intervention with so many poorly understood risks.”

21/09/2014 - The economic impact of interchange fee regulation - Austria

The economic impact of interchange fee regulation in Austria; a report for Mastercard. Andrew Lilico, Executive Director of Europe Economics and author of the report, said: “The impact of similar legislation around the world provides a clear warning of the need for further scrutiny of the proposed regulations.  The experience in Spain, Australia and the United States has been that consumers have so far paid more in banking fees, but not seen a reduction in prices at the shops. Large retailers appear to gain the most, while small businesses might not enjoy the same reductions in fees, but could pay more for their banking services.   Proposals to regulate commercial cards and separate schemes and card processing are likely to be particularly disruptive. The consequences of legislative interference in interchange fee rates require much more careful examination than they have received up to now. The justification for action is not rigorous enough for an intervention with so many poorly understood risks.”

21/09/2014 - The economic impact of interchange fee regulation - UK

The economic impact of interchange fee regulation in the UK; a report for Mastercard. Andrew Lilico, Executive Director of Europe Economics and author of the report, said: “The impact of similar legislation around the world provides a clear warning of the need for further scrutiny of the proposed regulations.  The experience in Spain, Australia and the United States has been that consumers have so far paid more in banking fees, but not seen a reduction in prices at the shops. Large retailers appear to gain the most, while small businesses might not enjoy the same reductions in fees, but could pay more for their banking services.   Proposals to regulate commercial cards and separate schemes and card processing are likely to be particularly disruptive. The consequences of legislative interference in interchange fee rates require much more careful examination than they have received up to now. The justification for action is not rigorous enough for an intervention with so many poorly understood risks.”

10/09/2014 - External Reference Pricing - A report for MSD Europe, Inc.

In 2012-2013, Europe Economics analysed the impact of external reference pricing (ERP) within the EU on affordable access to medicines and pharmaceuticals manufactures on behalf of MSD Europe, Inc.  We argue that ERP creates incentives for delaying the launch of new or innovative drugs in lower-income countries and that prices for these drugs are higher for lower-income countries than they would have been in the absence of ERP.  We substantiate these arguments empirically using data on a variety of in-patent drug molecules. In order to balance ensuring affordable access to medicines with providing an incentive companies to develop innovative medicines, we argue that ERP should be should be reformed and that social welfare would be higher under differentiated pricing that better reflects ability to pay for patented medicines.