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The European Parliament adopted the Capital Adequacy Directive after broad consensus about the call-back clause emerged. The European Parliament broadly supports a two-year 'sunset clause' as demanded by rapporteur Alexander Radwan. After this time limit, a decision on comitology worked out by the Council, the European Parliament and the Commission, shall secure the rights of the European Parliament to 'call back' technical questions to the plenary.
'The compromise is a good example of how the European Parliament has fully matched its far-reaching competency due to the co-decision procedure in the field of financial markets regulation', Mr Radwan said. Once the Council has given its approval there is nothing to stop the new capital rules being applied punctually by the European banking industry from the beginning of 2007.
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