Labouring with Lamfalussy

WHEN Alexandre Lamfalussy published his recommendations for the regulation of European securities markets last February, his report was praised by London's bankers and regulators alike. Few argued with the need to harmonise capital-market rules in Europe, and Mr Lamfalussy and his “committee of wise men” had come up with what seemed to be a sensible proposal to speed up the European Commission's action plan for financial services, by streamlining the legislative process. Yet the constructive mood has not lasted: the first two directives planned to follow the Lamfalussy procedure were panned this week by City types.