The European Commission will today warn of serious damage to Europe's economy and credibility unless national governments speed up reforms to build integrated financial markets across the EU.
In a report on the progress of its plans for reform of the EU's financial system, the Commission will tell member-states and the European Parliament that time is running out.
Commissioner for the European single market, Mr Frits Bolkestein, will say that unless governments and the parliament approve 10 new legislative proposals in the next year, Europe will miss self-imposed deadlines to create a more competitive economy.
Failure to achieve that will embarrass national and European institutions and deprive Europe of a catalyst for growth and financial stability at a time when the economic outlook was worsening.
The call from the Commission is aimed at ending the political disagreements and institutional disputes threatening the implementation of its financial services action plan. This consists of 42 measures designed to create an integrated European financial market by 2005, and a securities market by 2003.
The plan is an important element of the ambitious programme to make Europe the most competitive economy in the world by 2010.
The Commission's criticism - contained in its six-monthly report on the action plan, to be published today - follows the blocking or delay of a number of the reforms by vetoes from national governments or the European Parliament.
In July, the Commission suffered a setback when the European Parliament rejected its proposals for EU-wide takeover rules, after 12 years of negotiation. Last week, the Commission's proposals for an EU patent were delayed by disagreements among governments.
The Commission's report is expected to say much progress has been made, with 25 of the plan's 42 proposals being finalised, including important rules on cross-border banking charges. However, Brussels will express concern that, despite repeated political declarations by heads of states, progress on the rest of the reforms is slow.
