What is the significance of the IBAN for EU standard transfers?

According to the EU directive, international transfers within the EU must not cost more than domestic transfers, as long as the EU standard transfer is used. This standard transfer must contain the IBAN.

The recipient's BIC (Bank Identification Code - an eleven-digit combination of characters) must not be missing either. Only the euro is permitted as currency. The order value is limited to a maximum of 50.000 Euro. Amounts of 12.500 Euro or more must be reported to the Bundesbank for foreign trade statistics.