Between the Lines: Eurotrashing Enron

After initially dismissing the Enron fiasco as a product of flawed U.S. accounting practices, the European Union (EU) came to realize that its investors are likewise vulnerable to corporate fraud. Frits Bolkestein, the EU's internal market and taxation commissioner, recently told a U.S. audience that Europe was strengthening the rules that govern the operations of accountants, auditors, and regulators. But Bolkestein's assurances glossed over the difficulties of implementing reform among 15 member states that each have their own regulatory regimes.

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David Fairlamb is the European economics correspondent for BusinessWeek.

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