Accord au sein du Conseil EcoFin sur les deux Directives de mise en oeuvre de Basel II[en] 

The measures are part of the Financial Services Action Plan to create a single European market for financial services.

On capital adequacy, the Council agreed on two draft directives which, with some amendments to fit the EU market, will bring the EU’s rules into line with the requirements of Basel II, which sets standards for all internationally active banks. The EU’s Capital Requirements Directive (CRD) will have a wider scope, applying to some 8,000 EU credit institutions and investment firms including some small domestic banks. It requires banks to scrutinise, through proper internal systems, the types of risk they face and to be able to satisfy the banking supervisory authority that they hold sufficient capital to guarantee those risks. There are three levels banks can work with, allowing lower capital requirements for banks financing SMEs and small borrowers.

In the CRD, one contentious issue was the provision on consolidated supervision for cross-border banking groups. The proposal provides that national banking supervisors should work together to reach agreement on the adequacy of risk assessment methods. If they cannot agree, a "lead supervisor" from the parent company would take the decision. Smaller EU states are concerned that their supervisors might not be heard against the already established supervisors from larger states. 

The Statutory Audit Directive was designed to deal with financial scandals such as Parmalat and Ahold (two European companies whose accounts were found to be full of irregularities, hiding large-scale losses). The directive clarifies the duties of statutory auditors and sets down obligations of independence and quality assurance. It provides for external public review by regulators and sets up a committee to ensure co-operation between regulatory authorities at European level. The directive also foresees the adoption of international auditing standards through co-operation with third country regulators.

The Council also reached agreement on an improved system of taxation for company mergers and strengthened measures to combat money laundering and terrorist financing. It welcomed the extension of the Lamfalussy process to all financial sectors.

The Federation of European Banks welcomed the general approach of the Capital Requirements Directive but stated that it did not go far enough to create a fully-functioning supervisory framework for EU banking. They would also like to see stronger powers for the "lead supervisor".

The European Financial Services Round Table has published a paper which also stresses the need for "lead supervisors". It takes the view that financial companies are facing problems in having to deal with a multitude of local supervisors, a situation which is "expensive and ineffective" in the words of Anton van Rossum, CEO of Fortis Bank.

In a November 2004 position paper, three SME Associations, Eurochambres, Eurocommerce and UEAPME, welcomed the incorporation of Basel II into EU law but were concerned as to the cost of its implementation for the banking system and the effect this might have on SMEs by way of higher charges for smaller loans.