By Anna McLauchlin - 17th February 2004
MEPs have rejected a plan by EU capitals requiring European companies to produce a trading statement every three months.
But the possibility of an agreement on the issue before the June European elections has not been ruled out.
After months of negotiations, EU governments had finally backed a draft law on company transparency, aimed at ensuring investors across the EU have access to the information they need to make an informed investment.
Under this draft, companies would not have to report on their turnover and profit and loss every quarter as demanded under the original text.
Instead, they could simply produce a statement containing any general information which could influence investors such as changes to business structure.
But even this was too restrictive for MEPs, who rejected the draft in the European Parliament's economic committee on Tuesday.
But speaking to EUpolitix after Tuesday's vote, shadow rapporteur Theresa Villiers remained upbeat about a compromise.
"Certainly we've taken the hardline with the council", she said, "but that's not to say we wouldn't be prepared to come to a compromise."
Parliament is aware that time is pressing on the directive, she added.
"The only contentious issues are on quarterly reporting and a couple of articles on bonds," Villiers said.
"I think these can be resolved before first vote in plenary."
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