France managed on Monday to muster the support of three EU countries against adoption of a controversial accounting standard for banks, raising doubts the EU can adopt the rule in its current form, diplomats said.
At a meeting of government and European Commission officials in Brussels, France, Italy, Spain and Belgium expressed concern that the disputed bookkeeping rule, known as IAS 39, would make banks' earnings appear volatile.
The widespread fear among EU states appears to favour the banks, which have asked the Commission to postpone adoption of IAS 39 until it has been amended.
Fifteen of the 25 EU states want to adopt the standard, while six, including EU heavyweight Germany, did not make their position clear.
"Member states are divided and things are unclear at this point," an EU diplomat told Reuters.
"The Commission appeared to be inclined to support endorsement of the standard but it is not going to be easy".