In the late 1990s, the United States boomed in the context of so-called new economy. In the European Union - despite progress in integration in the form of the single market program in 1992 and the adoption of a single currency in January 1999 - appeared to languish after the United States, and they were looking for ways to stimulate rapid growth. Many observers have pointed to the need for structural reforms and, in particular, the creation of an American-style deep and liquid capital markets continentwide, which will act as a catalyst for change management. Exposing managers pressure of hostile takeovers, more discipline and efficiency will lead. However, hostile takeovers have been anathema to the bank-centered corporate governance typical of continental Europe in general and Germany in particular. The European Commission presented a draft directive coup in 1989. After the painful process through the maze of corridors of many European institutions, the directive was ultimately rejected on the basis of a tied vote in the European Parliament. This refusal was developed by German Christian Democrats -. Supposedly right-center parties support the German business "Hide
by Hugh Pill, Ingrid Vogel Source: Harvard Business School 27 pages. Publication Date: 02 Oct 2002. Prod. #: 703014-PDF-ENG
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