For the second time, the merger of the London Stock Exchange and the Deutsche Borse is beset by doubt. Having buried their differences after the recriminations of the first failed attempt, it appeared the exchanges had finally come to terms with the need to provide a wider platform in today's global and, increasingly, electronic market.

The management structure and the geographic problems were sorted and the plan approved by both exchanges. Now it rapidly appears to be falling apart. Between the British market's Little Englander approach to quoting share prices in Europe's dominant market in euros - the currency of its largest trading bloc - and German fears about ceding any control to anyone outside Frankfurt, real doubts exist about the merger proposal's chances of success.

Most ridiculous of all are the allegations by the director-general of the Institute of Directors in Britain that three major US investment banks are pushing the idea for their own commercial interest. Institutions, including investment banks, have effectively been running a goodly portion of public companies anyway, as the director-general, Mr George Cox, knows. They provide the lion's share of the funds in the market and therefore have a disproportionate say in the decisions taken by listed companies - ask Irish second-liners about the make-or-break power of the institutions. Mr Cox really cannot have it both ways.

It is true that there are genuine concerns about regulatory problems for a cross-border exchange and fears over the costs of such a project, but these are not insurmountable. And it is also true that Nasdaq is coming with an electronic European platform anyway. Europe's largest markets must adapt or face a bleak future. There is no room for myopic self-interest.

Dominic Coyle can be contacted at dcoyle@irish-times.ie