The completion of the EU internal market in financial services will bring considerable benefits for the sector and for small businesses and will offer greater consumer protection, according to a European Commission official.

Mr David Wright, director of the internal markets directorate-general in the Commission, said the developments would make the sector more competitive, provide innovative market finance, especially for small firms, through an increased venture capital market, and develop a bigger corporate bond market.

In Dublin yesterday he said the result would be a considerable increase in the EU's GDP of €10 trillion (£7.9 trillion). But the action plan on financial services had to be completed by the 2005 deadline. The alternative was continued fragmentation of legislation and "sub-optimal economic results".