Frits Bolkestein, the internal market commissioner, has sharply criticised European Union ministers for supporting a compromise proposal on new rules for takeover bids. He believes it could hinder Europe's drive to become more competitive and slow the integration of capital markets.

"I am not going to pretend that I am pleased with this agreement. Nor am I going to be hypocritical by pretending that the version of the directive agreed (on Thursday) today represents a step forward for EU competitiveness or for the integration of EU capital markets,' he said