The European Commissioner for Health and Consumer Affairs, Mr David Byrne, has demanded banks introduce a nominal charge of #1 (79p) for credit transfers between banks in the euro zone.

With the introduction of the single currency next year, banks should stop differentiating between domestic and euro-zone transfers, he said. "If there are greater costs they should be absorbed by banks so the consumer can enjoy the full benefit of the euro," he said in Berlin yesterday. A European Commission survey found it costs on average #17 to transfer #100 from a bank account in one euro-zone country to another. Irish banks are the most expensive in the 11-country euro zone, according to the report, charging an average of #26.

Banks in the euro zone have reportedly agreed to charge each other #3 for each transfer under #12,500, but have proposed charging customers #10-#12.

The Commission will be pushing for a better deal for consumers. It will decide later if legislation is needed to force banks to reduce charges. "`I believe the banks can do better than a #10 charge," said Mr Byrne. The Irish Bankers' Federation (IBF) declined to comment on how Irish banks set their transfer charges, and said it was a matter of competition.

The European Consumer Centre yesterday welcomed Mr Byrne's comments.