Luxembourg, 05/06/2002 (Agence Europe) - Discussions over the "prospectus" directive, at Tuesday's EcoFin Council in Luxembourg, allowed ministers to make "good progress" and "leads us to believe that an agreement will be found by the end of the year", as requested by the Barcelona Summit, noted Commissioner Frits Bolkestein. The Commissioner did not rule out presenting a modified proposal, so as to take account of the amendments of the European Parliament last March (see EUROPE of 16 March) and the concerns of certain Member states. The directive aligns information that companies must supply when being floated on the stock market or in a public takeover bid, so as to allow for an assessment of their financial health. It will this way create a single passport for issuers.
Ministers backed the Spanish Presidency on the two questions raised by the Madrid Council, so as to: 1) grant different treatment to professional investors on the non-equity securities market, so as to lighten the burden weighing on the market for Eurobonds; 2) give issuers the freedom of choice of Member state in which they submit their prospectuses for non-equity securities, while confirming that the undertaking will submit information on other types of financial products to the regulatory authority of their State of residence. This latter wording is a compromise, certain Member states, like the United Kingdom and Luxembourg so far wanting flexibility for all issues. Parliament pleads along these lines. The Commission, on the other hand, opposed it, fearing unfair competition between financial places.
During the Council, German minister Hans Eichel, moreover proposed creating a "European prospectus agency", an idea that was not badly received, but most delegation believed it too late to be included in current talks.