The implementation of the SEPA project will have a twofold impact on the State: firstly, in its capacity as guarantor of the public interest and secondly, as a user of payment instruments.
The State’s foremost concern is to make sure that through this project, French as well as European citizens will gain access to a set of modern, inexpensive and safe euro-denominated payment instruments. It was on this proviso that European ministers of Finance announced their decision to support SEPA at the Council of the European Union meeting of October 2006.
The State’s second major concern is to ascertain that public administrations are able to use these new European payment instruments in the best conditions. Public administrations – central government, local authorities and welfare organisations – make extensive use of payment instruments to collect taxes, pay wages and salaries, collect social security contributions, pay benefits and settle suppliers’ bills. The implementation of SEPA will therefore have a significant impact on them. They will need to update all computer applications used for payment and collection of funds while striving to minimise the impact of the adjustment costs on public finances.
Steps taken by public administrations to adapt to SEPA are part of a broader drive to use more modern payment instruments. The payment of taxes using direct debits, of subsidised school meals using payment cards and the “TIP” are some of the means put in place by public administrations to offer taxpayers and users the most cost-efficient and practical payment instruments.