Publication

This paper examines in detail the role of the European Commission in the Capital Requirements Directive (CRD) legislative process in light of the new Basel Capital Accord (Basel II) and French and Dutch rejections of the proposed European Constitution. The author identifies several potential scenarios for CRD adoption, with particular reference to an ensuing polemic between the European Parliament and the Commission on this directive. Highlighting outstanding issues related to the CRD, the paper concludes in supporting the directive as a comprehensive legislative framework and offers several recommendations concerning both its scope and implementation.