Ministers ask ECB to delay market plan

European Union finance ministers asked the European Central Bank today to delay its final decision on a radical overhaul of the…

European Union finance ministers asked the European Central Bank today to delay its final decision on a radical overhaul of the bloc's financial markets to cut costs for investors.

The ministers said the business case needed to be proven, according to conclusions of a meeting.

The central bank is due to take a final decision next month on Target 2 Securities, a project that would cost €166 million.

The ministers invited the Frankfurt-based bank to "report back regularly . . . on the progress of T2S project, starting with the results of the consultation process in 2007 before a final decision is taken," the conclusions said.

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T2S would allow people buying and selling bonds and shares in the 13-nation euro zone to settle via one point of contact instead of having to link up to each country's central securities depository or settlement house as now.

The ECB has already postponed a final go-ahead by a month and now faces pressure for a further delay even though the formal blessing of finance ministers is not strictly needed.