The European Parliament and officials representing European Union member states are battling to reach a deal on bank capital requirements in time to meet an end-of-year deadline set by the European Council.
Despite two further meetings last week (23 and 24 October), negotiators from the two sides and the European Commission have failed to get an agreement on the fourth version of the capital requirements directive and regulation (CRD IV).
All parties are under pressure to reach a deal to prevent delay to the EU's implementation of the global Basel III banking rules. Without agreement between Parliament and the member states, the proposals cannot become law. Talks will continue in November, with the Parliament contemplating holding a full vote on its position in order to put further pressure on member states to back its approach.
The Parliament has also shown eagerness to complete work on another piece of financial services draft legislation, by voting at its full session on Friday (26 October) in favour of sweeping limits on financial transactions, including curbs on high-frequency trading and commodities transactions.
Many of the measures supported by MEPs in their position on the draft markets in financial instruments directive and regulation (Mifid and Mifir) are aimed at protecting consumers and increasing transparency.
Member states have not yet agreed their position on the draft legislation. The EU's 27 finance ministers are expected to discuss it at their meeting on 13 November – but a deal seems some way off.