Mr President, in the aftermath of the Enron scandal, it is tempting simply to say that these proposals for the introduction of international accounting standards into the Community are an idea whose time has come. But it is wrong to see it simply in those terms, because there is more to it than that. If Europe is to match the United States economically, we need to create a single capital market; otherwise borrowing will also be more expensive here, which in turn inevitably favours the United States. One of the over-riding imperatives of Europe's economy must be to compete in the global market, and this change is a necessary precondition to that end. In its consideration of these proposals by the Legal Affairs Committee, a very wide-ranging rewording of the text has been carried out which I understand is acceptable to both the Commission and the Council and which also meets the concerns of the committee. I therefore hope that if Parliament as a whole agrees, we may be able to deal with this proposal in a single reading, which will in turn convey a significant message around the globe. In particular, some important elements have been introduced and a number should be mentioned. These include the following: firstly, following President Prodi's statement to Parliament last month about the comitology aspects of the Lamfalussy proposal, the Commission has agreed that the relevant and appropriate principles contained in it will be applied pari passu in this instance. I would therefore be extremely grateful if the Commissioner will be able to confirm this to the House now, since it is an important and crucial point to Members. Secondly, in the special case of European Community companies filing their accounts in U.S. GAAP on a regulated exchange in a third country, they will be able to defer implementation of the relevant provisions of this Regulation until 2007 as opposed to 2005. Thirdly, it has been clarified that the agreed international accounting standards will be published in their legally binding form in the Official Journal in all the official languages. Fourthly, this proposal expressly excludes the mandatory application of international accounting standards as far as SMEs are concerned. It is of course open to Member States to apply them nationally, but that is a matter for them and not for us. In any event, as a result, I understand, of a Community initiative, the International Accounting Standards Council is going to consider the whole question of accounting issues and SMEs, which of course is something which is entirely separate from what we are discussing now. It is also important to explain to the House that this Regulation is in any event contained within the parameters of the existing European Community accounting code and that the standards themselves can only be adopted by the International Accounting Standards Committee after a rigorous and transparent process agreed by the IASC in its own properly adopted and legally enforceable constitution. It should also be made quite clear that the Commission plays an important role – as do the Member States' standard setters – in the formulation of the standards according to the IASC's due process procedures. In addition, a wide range of affected sectors in Europe have a formal relationship with the Commission in this regard through EFRAG, the European Financial Reporting Advisory Group, which has been established for this purpose. As I said in my opening remarks, in the aftermath of the Enron collapse in the United States, this proposal is timely because it is highly unlikely that such a debacle could have occurred under this approach to accounting standards, which is purposive or teleological as opposed to prescriptive. But of course, in itself, that is insufficient to avoid fraud and misfeasance. Proper enforcement, as is always the case with all legislation, is essential; and elements to achieve that are distinct from but obviously associated with standard setting. In a world where accounting standards generally register low on the Richter scale of political newsworthiness, they have a much higher profile now than is normal. For Europe to pass this legislation and apply international accounting standards would be a major step towards establishing a worldwide set of accounting rules and, what is more, a set of worldwide rules in the establishment and creation of which Europe will play an important part. Mr President, this is the prize. It is now, I believe, within our grasp. If we in Parliament support this proposal, it will mean that Parliament is seen to be serious about business and commerce, and it will show the world that Europe means business about business. And that is the goal of the financial services action plan.

Political group: PPE-DE