| Author (Person) | Chapman, Peter |
|---|---|
| Series Title | European Voice |
| Series Details | Vol.9, No.40, 27.11.03, p32 |
| Publication Date | 27/11/2003 |
| Content Type | News |
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By Peter Chapman Date: 27/11/03 FRITS Bolkestein, the commissioner for the internal market, has told EU governments they must reach unanimity if they want to strike a deal on company takeovers that he claims is "not worth the paper it is printed on". The Dutchman and his fellow commissioners oppose the compromise deal, brokered by three member states, which radically alters his own proposals. The new plan is likely to be put to the vote by competitiveness ministers meeting in Brussels today (27 November). The effect of the Commission's opposition is that, under EC Treaty rules, the ministers must agree unanimously to prevent the compromise from collapsing. In a bid to keep alive the chances of thrashing out a better deal, Bolkestein refused to take the nuclear option of scrapping the Commission's proposal entirely. That would have prevented the directive, in any guise, from entering the EU's statute books. This week's dispute adds another chapter to the sorry history of the controversial proposed takeover directive, which have been debated for more than a decade and was spectacularly blocked by MEPs two years ago following a tied vote. Speaking to MEPs earlier this week, Bolkestein lamented the possibility of a deal between governments that would remove crucial elements designed to remove barriers to cross-border mergers and acquisitions and thus bolster the competitiveness of EU industry. "We have worked for 13 years but this proposal harmonizes nothing," he said, adding: "The original position of Council and MEPs was a level playing field. This will not be the case with the Italian, Greek, Portuguese compromise." Nevertheless, he told deputies that the Commission had not considered exercising its legal right under the EC Treaty to withdraw the proposals. "It has not been discussed," he said, adding: "It is not on the cards. Withdrawing a proposal is not something one does lightly." Bolkestein, a former leader of the Dutch Liberal party, and known as an arch pragmatist, said the fact that the compromise deal is the only possibility on offer made it difficult for the Commission to take a firmer stand. Moreover, Parliamentary sources told European Voice that Bolkestein's colleagues would not have supported him had he called for the Commission proposal to be withdrawn. The member state compromise waters down original plans to stop boards of directors using methods known as poison pills to block unwanted takeover bids, following opposition from Germany, where rules support this right. Another key provision that would limit voting power of privileged shareholders were also pegged back. This was designed to appease Scandinavians who cherish a stable model of capitalism where small bands ofsuper-rich investors, control the destiny of companies by voting against takeovers. Bolkestein is most angry about a reciprocity clause that would allow firms in countries that scrap protection mechanisms to block bids from firms in countries that opt to cling on to them. Earlier this week it emerged that the US authorities have complained about a similar clause in the proposals that could save unprotected European companies from unwanted American takeover bids. Despite Bolkestein's comments, the economic and monetary affairs committee signalled its support for the compromise. The committee in charge of the dossier, the legal affairs committee, is expected to give its backing today (27 November). As European Voice went to press, only Spain, Finland, Sweden and Denmark had reservations about the deal on offer, with Sweden apparently the most opposed. |
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