In an effort to spare EU firms from costly regulation, EU Commissioner Mr Frits Bolkestein is expected to ask US SEC Chairman Mr Harvey Pitt to partly exempt European firms from tough US accounting laws.
The Commission believes a recently-approved US law against corporate abuses, the Sarbanes-Oxley act, creates a duplication of supervisory functions as it would put many EU accounting firms under the direct supervision of US authorities.
The Commission is to seek a compromise that avoids regulatory excesses for EU firms without hampering the ultimate US goal of cracking down on corporate fraud.
But it would not be seeking an exemption from the US requirement to have chief executives and chief financial officers of US-listed firms swearing an oath to certify accounts are accurate and fair, Bolkestein's spokesman said.
"We are seeking a solution that would avoid duplication and excessive red tape for EU firms and in particular avoid extra-territorial application of U.S. legislation," Bolkestein's spokesman Jonathan Todd told a press briefing.
The bill, adopted in the wake of scandals such as those seen at Enron and WorldCom, requires non-US firms listed in the United States to comply with the new regime regardless of supervisory structures already existing in their home country.