Mr President, this is not quite as dry or as difficult as the title makes it sound. I wish to begin by thanking my colleagues on the Committee on Economic and Monetary Affairs for their hard work on the amendments on the prospectus directive. I also wish to thank the Commission for the important facilitating role it has played in reaching what I hope will be an agreed set of amendments when they are voted on Wednesday, and to thank the Greek Presidency – and before that the Danish Presidency – for the preparation of this particular dossier. I hope we will have an overwhelming vote in favour of the compromise amendments, with the agreement of the Council, and that we will therefore have a prospectus directive later in July when the Ecofin Council meets again. This is a key part of the Financial Services Action Plan and of creating a single market in financial services. Instead of having to use 15 separate prospectuses to reach retail investors in the existing European Union, in future an issuer of bonds or shares will only need one. That will give a passport not just to 15 Member States but to 25 and a market of more than 400 million people. The single European market in new issues of shares and bonds is set to become a reality. This will lead to more competition and, therefore, greater choice for investors, cheaper capital for businesses, and more funding opportunities for many businesses that might be denied finance if they were limited to their national market. Moreover, this key advantage – a single passport – has been achieved without some of the less felicitous baggage that was originally contained in a somewhat rushed proposal from the Commission and that would have added to the regulatory burdens, particularly on smaller listed companies. This deal ensures that there is no mandatory shelf registration and that there is no mandatory annual updating, unless the issuer intends to continue issuing shares or bonds. This is a significant achievement for this Parliament in influencing the final shape of this legislation. Crucially this agreement also confirms the freedom that issuers of bonds have to go to different EU regulators for the approval of their prospectus, so long as the minimum denomination is EUR 1000 or more or, importantly, a nearly equivalent amount in other currencies, so that USD 1000 can also be a minimum amount. The euro markets raised USD 1.6 trillion equivalent of finance for business last year and 60% of that finance was in non-euro currencies such as the dollar and the yen. Europe is the proud home of the international capital market and this deal now gives that international market a way of bringing its benefits across to domestic investors too. The Council and the Commission have accepted the vast majority of the amendments passed by Parliament at its first reading in March 2002: on the choice of EU regulator for bonds, on a light touch for small and medium-sized businesses, on tailoring requirements to different issues, on lightening the burden on issues. Thanks to Parliament's insistence we have also reached compromise on the ability of national authorities to delegate approval of prospectuses to stock exchanges and others such as the nominated advisors in the aim market. There will be a review after five years and the Commission may reconsider the commitment to phasing out delegation after eight years. The political declaration from the Commission is important and it shows an open-mindedness faced with the evidence, which we would obviously expect. We have also made clear that both national authorities and stock exchanges may continue to insist on higher standards of disclosure and corporate governance as a requirement of listing, if they so wish. This should put some fears to rest. As regards the last-minute changes that were agreed only last week by the Council, we have also clarified that existing medium-term note programmes, a very important type of financing structure in the euro markets, can continue unchanged. Indeed they will now be extended beyond the four Member States which currently recognise them and will also benefit from the passport. This is a real breakthrough for the single market and this House can be proud of its influence in ensuring that the directive is an effective means of extending competition, choice and efficiency.

Political group: ELDR