EU finance ministers seem likely to agree a new system for regulating European financial services when they meet in Stockholm tonight. The ministers, who are meeting in the Swedish capital on the eve of a summit of EU leaders, will discuss a report by Baron Alexandre Lamfalussy aimed at creating an internal market in financial services.
The report proposes the creation of a new regulatory body called the European Securities Committee, to be chaired by the European Commission. A threeway dispute between the Commission, the 15 member-states and the European Parliament has delayed approval of the report.
But there are signs that the three bodies are close to agreement on a compromise that would limit the Commission's role and maintain the Parliament's right to scrutinise new legislation.
The Minister for Finance, Mr McCreevy, is hoping for an agreement which could make it easier for financial institutions to operate across borders.
The Stockholm summit will be dominated by economic issues. Moves to simplify the regulation of business have been identified as a priority for Ireland. Many businesses complain that Europe's forest of rules and regulations hinders competitiveness.
When they met in Lisbon last year, EU leaders said they were determined to make the EU the most competitive place in the world for business. This weekend's summit will be an opportunity to review progress on improving workforce skills and making markets more efficient.
The French Prime Minister, Mr Lionel Jospin, has signalled that he will resist attempts to set tight deadlines for the complete liberalisation of services such as gas and electricity. Britain and Spain want energy markets to be fully liberalised by 2003 while Germany advocates a deadline of 2004.
France points to recent power cuts in California and a spate of rail accidents in Britain as evidence that public utilities should not be liberalised too hastily. And Paris argues that public services in the 15 member-states are too different to be covered by a single deadline.
