10 December 2001

FSAP deadline at risk unless EP demands are met?

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The 2003 deadline for the Financial Services Action Plan was plunged into doubt after a leading MEP told his colleagues to throw out a deal with the Commission on the Lamfalussy procedure unless deputies can say ‘no’ to new rules they don’t like. The European Voice reported that Karl von Wogau, German MEP, 'now wanted to add a formal 'call-back' and other measures to the sunset clause – guaranteeing the Parliament's right to scrutinize rules drawn up by the new committees on a continual basis'. According to the newspaper he also demanded a separate committee of industry participants to ensure firms can actually live with the fine print of the law and to avoid the current problems with the 'badly drafted' proposals on prospectuses and market abuse.

According to European Voice the Commission claims it has little room to give increased powers to the Parliament and says it is bound by the Treaties. The Parliament's demands would require a change to the Treaties. Bolkestein this week predicted a huge logjam as member states and MEPs take longer than expected to adopt new laws – including the directives on prospectus and market abuse.

Mr. von Wogau is also rapporteur to the Committee on Legal Affairs and the Internal Market on the Lamfalussy procedure and will present his report on the next meeting on 18/19 December.

© Graham Bishop