I. TIME TO TAKE STOCK ON THE MARKETS: THE FINANCIAL SERVICES ACTION PLAN CONCLUDES AS THE COMPANY LAW ACTION PLAN ROLLS OUT

The European Union's 1999 Financial Services Action Plan (the FSAP), an ambitious reform agenda of forty-two measures, was designed to provide the regulatory underpinning for a single deep and liquid capital market, in which pan-EU market actors are regulated by their home Member State under harmonized rules. This single capital market would lower the cost of capital, unlock funding sources for companies, and increase returns on savings, while widening choice and stimulating competition in the pan-EU financial services industry. After a surge of legislative activity over the last months of 2003 and through early 2004, the FSAP is on track for timely completion in mid-2004, as called for by the March 2003 Brussels European Council. The closing of the current session of the European Parliament in spring 2004, combined with a sharp political focus on the financial markets post-Enron and in the wake of Parmalat, has concentrated EU attention both inter-institutionally and in the market place on delivery of the outstanding measures.1 With the adoption of the cornerstone Financial Instruments Markets Directive in April 2004, the FSAP is now, in large part, complete. Implementation should be achieved across the EU by 2006.