The process to negotiate and finally settle on planned action to reform the audit profession within the European Union has been suddenly called off by the MEP leading the project, after failure among politicians to adopt a workable solution.
Insiders close to the process say that the 'trilogue' process - which are meetings attended by members of the European Parliament, the Council and Commission for the purpose of negotiating and agreeing a package of legislative measures - has so frustrated Sajjad Karim, the lead negotiator, that he has called off the latest round of negotiations.
Karim has been instrumental in bringing the audit reform project to the fore, campaigning for better governance and fresh rules in an effort to improve the effectiveness of the audit process while promoting greater competition among audit firms so as to diminish the dominance of the largest four, all of whom audited the largest banks which failed and needed rescuing during the global financial crisis.
Karim - a North West MEP and Conservative spokesman on legal affairs - used his power as rapporteur on the proposed directive and regulation on audit, to decide late Wednesday afternoon to cancel the scheduled trilogue discussions after the council failed to agree an amended negotiating position in response to compromises put forward by the parliament.
'Cancelling a round of negotiations is not something you do lightly, but I believe it is time for both the commission and the member states through the council to offer any compromise themselves.
'The parliament has made a considerable effort to find a way forward and presented a workable compromise package. But that has been only to find that the council has been unable to overcome national interests to reach an agreed position, while the commission has failed in its duties to mediate successfully.
'I am disappointed the council hasn't been able to make progress. I am equally disappointed that the commission hasn't been able to carry out its role as facilitator.
'In these circumstances there was no point holding a trilogue as there was nothing to discuss. I look forward to this changing and to a compromise package being put to a reconvened trilogue negotiation before too long,' said Karim.
