Deal In European Parliament Saves Budget Share-Dealing And Opens Up Stock Markets (Eastleigh Liberal Democrats)

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Deal In European Parliament Saves Budget Share-Dealing And Opens Up Stock Markets

March 30, 2004 11:59 AM

The European Parliament today approved two key EU directives - setting out market rules for brokers and stock markets and disclosure requirements for companies - that will act as the keystone in the new single market in financial services.

Commenting on the latest texts endorsed by MEPs from the three biggest groups - Liberal, European People's Party and Socialist - Chris Huhne, Hampshire MEP and economic and finance spokesman of the European Liberal Democrats, said:

'This compromise will open up european share markets to competitive trading. Investors will get a better deal. Budget share dealing - so-called execution only broking - is not only protected but spread throughout Europe. And listed companies will have to announce important information to the markets immediately rather than wait for a costly quarterly report. There will be no mandatory quarterly reporting.'

'The deal is not as liberal as I would like, since the EU will remain the only significant financial jurisdiction in the world to forbid some investors from negotiating a better price from their brokers. But it is a major step forward if the Commission implements this primary legislation in a liberal manner. And it is a vast improvement on the council's common position thanks to the tough negotiating of the European Parliament team' said Mr Huhne.

'The parliament has saved the day after the negotiating cock-ups of the UK Treasury nearly landed financial services in terrible trouble' said Mr Huhne. 'Ministers had clearly taken their eye off the ball when they were outvoted in council on 7th October last year'.

Mr Huhne, who was one of the MEPs involved in talks with the Commission and the Council, pointed out that the text not only eliminates so-called concentration rules - insisting that shares are traded through an exchange - but also will not reintroduce them by the back door.

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