Experts have answered the call of Europe's parliament and proposed a pan-European accounting standards body for stronger representation of the continent.

The European Financial Reporting Advisory Group, which advises the European Parliament in endorsing IFRS, is proposing to beef up its own resources and structures so it can confer on international standards, on equal terms with the International Accounting Standards Board.

EFRAG's proposal follows concerns by European finance ministers that the continent's interests are not sufficiently represented at the level of the IASB, as well as a desire to have a say in the agenda of the international standard setter.

EFRAG chairman Stig Enevoldsen said a long-term goal was to ensure that there is no 'monopoly' of accounting issues.

'No doubt there is concern about the close ties between the US and the IASB. But it is not only Europe that is concerned but the rest of the world as well,' said Enevoldsen.

EFRAG chairman Stig Enevoldsen said a long-term goals was to ensure that there is no 'monopoly' of accounting issues as it is important for Europe to provide input into the IASB's processes and agenda based on Europe's background and way of doing transactions.

'There needs to be a balance in the input to the IASB between the US, Europe and others. And that is why EFRAG's needs to be strengthened and we also need to work closely together in Europe to get a genuine European input.

'But we also need to ensure the long term proactive thinking on news issues are not left to the IASB only, but involves European background as well,' said Enevoldsen.

Accounting commentator and Bruegel research fellow Nicolas Véron said Europe currently had a very light infrastructure in so far as implementing IFRS.

'There is altogether widespread sentiment in the market place that the infrastructure in Europe is not sufficient to ensure high quality and consistent implementation of international accounting standards. And EFRAG is sensing this and purports to address this with its recommendations. It's also an answer to the call by the ECOFIN ministers concerned with governance of the IASB,' said Véron.

But Véron doubts EFRAG's ability to provide a structure equivalent to that which is present in the form of the US Securities and Exchange Commission.

'EFRAG remains an issuer-supported business group, which has the recognition of the European Commission in the sense that its opinions are part of a formal standards endorsement process. It's not clear EFRAG can provide the answers to challenges presented in the market place around IFRS.

'I think the European policymakers haven’t entirely thought through the decisions taken in 2002 to adopt IFRS because when these were taken, it was argued that efficiency in the market place would be improved.

'But after the controversies, such as that of IAS 39, policy makers have belatedly realised that there were some political dimensions to this business and have struggled to get a consistent approach and legitimacy for the process in Europe… the current decisions about EFRAG are about this struggle,' said Véron.

He described Europe as being 'obsessed' by the influence the US has on the international accounting standard setter.

'But they fail to recognise the US voice is based on the strong skills and expertise, especially at the level of the SEC, which plays a very central role in the US framework.

'So I think it is naïve to think that to beef up EFRAG could be a way of countering this force because EFRAG, in terms of market impact, remains a private sector group with private sector governance and is very different to the public authority that is the SEC,' said Véron.