19 March 2002

Bolkestein speech on FSAP timelines before EMAC

-
In his speech before the Economic and Monetary Affairs Committee of the European Parliament, Commissioner Frits Bolkestein affirmed that the climate is changing in the field of financial services and set out a timetable for forthcoming Commission proposals on key directives.

After the reached compromise on the Lamfalussy recommendations and the good progress being made on virtually all proposals it is now upto the Council and the Spanish Presidency to put forward the decision making process, especially on the Pension Funds Directive.

Barcelona called on the Council and the European Parliament to adopt in 2002 all the proposals on financial services which are currently under discussion in the Council and the Parliament.

On the Capital Framework for Banks and Investment Firms a workshop will be held on 26 March with officials from DG Internal Market. The European review is taking place in parallel with the global review by the Basel Committee. “Basel has recently experienced some delay in its timetable and has now fixed a firm date for implementing the new framework – namely, 31 December 2006”, the Commissioner said.

On the Investment Services Directive an exchange of views was held on 15 March with Member State representatives. A further round of consultation will be launched next week and an open hearing is being planned for 22 April. A Commission proposal could be tabled in the last quarter of 2002.

In the field of Take-over Bids the Commission in drafting a new proposal which should be finalized before Summer 2002. Also on Cross-border Mergers Commission intends to come forward very soon with a new proposal.

To supplement the International Accounting Standards Regulation, the Commission intends to issue shortly a proposal for a Directive amending the Accounting Directives. Besides, it should enable Member States to move towards the use of IAS for unlisted companies.

With regards to the ENRON case, the Commission is also working on a draft Recommendation on Auditors' Independence. Basic auditor independence issues that are covered by the Recommendation are:

the provision of additional services to audit clients

employment of audit staff with the audit client and

mandatory rotation of external auditors.

With regards to the Fiscalis 2007 program and Taxation issues Mr Bolkestein underlined that “it was necessary to take into account the conclusions of the Council’s ad hoc working group on tax fraud. In the future, direct tax administrations will have a tool to help them to work closer together, in a manner which has become second nature to indirect tax administrations by means of the Fiscalis programme.”

The Commissioner also announced a conference that the Commission is organising on 29 and 30 April. Main topic are the plans for removing the tax obstacles faced by companies operating cross-border in the internal market, in particular for exploring ways of providing companies with a common consolidated tax base for their EU-wide activities.

© European Commission