Ontwerp-richtlijn voor boekhoudregels bij grote ondernemingen versoepeld (en)

The EU's top institutions have agreed on a compromise version of pan-European auditing rules, scrapping the proposals greatly criticised by companies.

The original blueprint suggested firms would have to set up special audit committees, rotate audit partners after seven years and face some restrictions on non-audit work, writes the Financial Times.

It was designed to prevent accounting scandals as those reported in the last years in relation to the US firm Enron, the Dutch retailer Ahold or the Italian Parmalat, and restore confidence in the financial reporting of companies.

However, business leaders argued the proposed rules would enforce a rigid system on companies, while national laws in some EU countries already strictly cover the issue.

The deal struck between the commission, council and the parliament has ruled out such provisions - mainly by strengthening the role of member states in determining the details of firms' obligations, and so paved the way for the MEPs to move on with the directive in October.

The measures are part of the bloc's action plan on corporate governance aimed at creating a single market for financial services.

Brussels has coordinated its efforts with Washington, where similar regulation measures were adopted in 2002.