Delays in translating complex new legislation on bank capital into the 20 official European Union languages may slow down EU adoption, Internal Market Commissioner Mr Charlie McCreevy indicated today.
"There is definitely an issue about translation. The European Parliament is very concerned. This is something I am aware of, but hopefully it will not hold up things unduly," McCreevy told a financial conference in Paris.
The new bank capital legislation needs the endorsement of finance ministers and the European Parliament to become law across the 25-nation bloc.
The European Commission has suggested translating the legislation into French and English only to speed up the process, but the parliament insisted on translation into all official EU languages.
EU finance ministers are due tomorrow to give their backing to the rules, enshrined in the Capital Adequacy Directive, but there is concern that delays due to translation may push the date of adoption beyond the end of 2006.
The planned rules are the EU's version of the global Basel II accord on bank capital unveiled earlier this year, designed to improve the safety of the world's financial system.
EU banks and investment firms are expected to start implementing the simpler aspects of the new capital adequacy rule at the end of 2006, while the more complex part of the plan would be in use from the end of 2007.
But observers fear the translation issue could push the introduction date back by one year.