European Parliament Calls For Single Regulator In Response To Parmalat Collapse

by Ulrika Lomas, for LawAndTax-News.com, Brussels

19 February 2004

The European Parliament has filed a motion for a resolution in the wake of the collapse of Parmalat, arguing that the creation of a single European regulator is the way forward.

In the motion, filed with the European Commission, the Council of Ministers, national regulators, and the United States government, amongst other institutions, the six main political groups in the EU Parliament expressed concern "that neither the supervisors nor the regulatory authority nor the auditors nor the rating agencies had the slightest suspicion, at any stage in the audit process, that funds were being embezzled."

In addition to recommending the creation of a single regulator, the European Parliament also suggested that statutory audit rules should form part of corporate governance legislation.

The Parliament cannot itself propose legislation, but is hoping that this motion will prompt the EC into action on the issue of EU-level regulation.

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