Brussels, 08/06/2006 (Agence Europe) - The Ecofin Council on 7 June formally and unanimously adopted the proposal for a directive on adequacy of own funds in investment firms and credit establishments, better known as the Basel II Directive. Adopted at first reading by the European institutions (see EUROPE 9038 and 8844), the directive is based on three pillars: - capital requirements more linked to risk management as practised by financial establishments; - improved control methods available to authorities for assessing the effectiveness of internal auditing systems of financial establishments; - and new rules regarding information, with a view to increasing transparency and market discipline. In a press release, MEP Gianni Pittella (PES, Italy) welcomes the fact that the directive has been adopted, as this constitutes a “major signal” on the part of the Ecofin Council, which has taken the opinion of the European Parliament into account.