EU markets reform clears hurdle

PLANS to accelerate the development of pan-European financial markets took a major step forward today when the European Parliament accepted proposals to allow two new EU committees to write detailed securities regulations.

The new rules could cover such actions as the issue of corporate prospectuses, takeovers and market abuse.

A committee headed by Baron Alexandre Lamfalussy last year proposed setting up a new system of European Union securities market regulation in order to speed up regulatory processes and ensure that new regulations could be adopted swiftly and keep abreast of market developments.

The Parliament today endorsed a compromise that will permit the new procedures to be put into effect and so speed up the implementation of the EU's Financial Services Action Plan, which is aimed at liberalising financial markets.

The implementation of the Lamfalussy proposals had been held up by a procedural wrangle between the Parliament and the European Commission, which was resolved when Commission President Romano Prodi promised to safeguard the Parliament's constitutional rights to oversee new regulations.