14-3-2008 | New Endorsement Process: The Council of the EU adopted on 3 March the text of the amendment of the IAS Regulation

It is expected that the revised Regulation (EC) Nº 1606/2002, introducing the new so called 'regulatory procedure with scrutiny', will be published in the Official Journal of the EU towards the end of March.

The main changes, compared to the current regulatory procedure, consist of (a) the systematic consultation of both the European Parliament (EP) and the Council of the EU and (b) substantially broadened right of oversight of the EP and the Council. Both (the EP and Council) may oppose proposals provided by the European Commission (EC) on the following grounds: (a) the proposal by the EC exceeds the implementing powers provided, (b) the proposal is not compatible with the aim or the content of the IAS Regulation or (c) the proposal does not respect the principles of subsidiarity or proportionality.  In the case of opposition by any of the two parties (EP or Council), the proposal by the EC shall not be adopted. Furthermore, the European Parliament and the Council both will have a longer, three month oversight period, starting when all linguistic versions of a draft Regulation endorsing IFRS or Interpretation have been submitted to them .