sentences:  The Lamfalussy Report, i.e., the Final Report of the Committee of Wise Men on the Regulation of European Securities Markets, published on 15 February 2001, now adopted by the European Council in Stockholm on 23 March 2001, presents a useful diagnosis of the issues and problems within the European Union capital markets.At the core of these concerns lie the difficulties of implementing reforms through state regulators who, given their inherent risk aversion reinforced by their accountability to national policy makers, have a tendency to exploit any ambiguities in EU Directives in favor of national exchanges and constituencies.The Report proposed a four-level regulatory approach.