A HUGE European market has opened up for York-based Norwich Union.

The European Union summit in Stockholm has just agreed to establish a new rule-making committee to more quickly implement general Europe-wide laws on securities trading.

Optimists believe that this will quickly lead to a single market for financial services.

The arrangement opens up massive future opportunities for the likes of Norwich Union and other British financial services companies, including banks.

It means more stability for Norwich Union whose 2,300 York-based staff have undergone a series of mergers over the past three years, starting with General Accident and Commercial Union and ultimately merging with Norwich Union under the NU insurance brand.

And the prospect brings to an end ten years of frustration through being prevented by red tape from selling insurance and other financial products on the Continent.

Many EC countries were fearful that they would be swamped by Britain's big and efficient financial services.

But mergers throughout Europe have now made the playing field a little more level.

The breakthrough has been applauded by both Hugh Bayley, MP for York, and Philip Scott, chief executive of Norwich Union in York.

Mr Bayley said: "It is very good news for us. We have been pushing for this for a decade now.

"We have a fantastically well-developed financial services industry, with huge strength in the City of London and more money invested in pensions in the UK than in the rest of Europe.

"Our insurance companies lead the way and we have some of the big banks, so we have more to give when it comes to selling products in Europe than they have to give to us."

He said that Britain's financial services companies needed to grow to survive - the reason for the series of mergers from General Accident to Norwich Union.

Philip Scott, chief executive of Norwich Union based in York said: "We welcome the improved European approach to financial services. It will probably enhance opportunities for the CNGU group which is already the fifth largest life insurer in Europe."

Mr Scott who is also executive director of parent company CGNU plc added: "Anything which benefits the global group will benefit the UK trading arm, Norwich Union. It will certainly help job security."

The European Commission has agreed to set up a common European framework for a single insurance market "promoting efficiency and market integration" and allowing insurers "to operate throughout the EU and to establish and provide services freely."