(BRUSSELS) - The European Commission launched on Tuesday legal action against 24 member states for dragging their feet on adopting new EU investment services regulations, a spokesman said.

Out of the 27 European Union members, only Britain, Ireland and Romania had adopted on schedule the new EU rules, which aim to create a single European market and regulatory regime for securities.

"The infringement procedures have started," Commission spokesman Oliver Drewes told journalists.

Member states were supposed to have adopted the rules into their national legislation by the end of January so that they would be up and running by November.

Britain, which has a huge financial services industry, and Romania were the only countries to have met the January deadline while Ireland has since adopted the new rules.

However, Drewes said that "a large bulk of member states will fulfill their obligations" to implement the rules in May, June or July.

EU Internal Market Commissioner Charlie McCreevy sent a letter to EU finance ministers calling for the adoption of the new rules to be made a political priority, warning of painful consequences for the industry.

"I urge member states to keep to the timetable that they themselves have agreed," McCreevy said. "Further delays could well expose Europe's firms and banks to serious competitive disadvantage."

The new rules aim to make it easier for banks to offer pan-European investment services in order to fuel more competition while also protecting investors.

Markets in Financial Instruments Directive

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