MEPs setback in fight over securities deal

Date: 05/04/01

By Peter Chapman

FINANCIAL services chief Frits Bolkestein has blocked demands by MEPs to oversee proposed reforms of the EU securities markets.

Last week, member states voted to give themselves the power to veto any of the reforms they do not like. The MEPs wanted the same deal.

But in a closed-door meeting with Bolkestein and Swedish presidency officials on Monday, the Union's only directly-elected body was told "no way".

Under the Assembly plan, MEPs would have exchanged letters or signed a deal with the Commission and Council of Ministers, acknowledging that the European Parliament could oversee the work of regulators tasked with honing financial services legislation drawn up by the executive.

MEPs say Bolkestein refused to back their plan because he feared it would jeopardise the institution's right to initiate legislation.

Economic and monetary committee chairwoman Christa Randzio-Plath said further meetings were planned in an effort to break the deadlock. MEPs also face tough talks next week over their stalemate on the EU's takeover directive.

Financial services chief Frits Bolkestein has blocked demands by MEPs to oversee proposed reforms of the EU securities markets. Member States have voted to give themselves the power to veto any of the reforms they do not like. The MEPs wanted the same deal.