Brussels, 15/07/2003 (Agence Europe) - During Tuesday's Ecofin Council in Brussels, France heightened the awareness of its partners and the European Commission to its concerns (coming originally from banking and insurance sectors) about certain accounting standards (IAS 32 and IAS 39) that must be adopted by the EU on 16 July within the IASB (International Accounting Standards Board). Commissioner Frits Bolkestein pointed out that he was aware of this problem (also raised by Spain and Belgium) that he himself brought to the knowledge of IASB President David Tweedie. At this stage, the Commission is not expected to include these two norms in the package of standards to be adopted by Member states within IASB. According to the arguments developed by Jacques Chirac in a letter addressed on 4 July to Romano Prodi (see EUROPE of 12 July 2003, p.7), these two norms could lead to increased "financiarisation" of our economy and to company management methods that put too much emphasis on the short term. In his letter, Mr Chirac explains that several standards could also have a negative impact on the European economy and business and that they therefore deserve vigilant and indepth examination at the meeting on 16 July. According to France, it is important for purely financial movements not to have disproportionate consequences on the results of companies quarter after quarter, as companies must above all reflect upon their economic activity.
France would like to find a way for the EU, the Commission and the Member States to have more influence on the development of standards by the IASB. Paris, however, comes up against opposition from the United Kingdom which under no circumstances wants to bring the independence of the IASB into question.