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Empty Seats at the Table
Maybe it's time to feel sorry for Europe 's top executives. Last week, Los Angeles-based headhunters Korn/Ferry International revealed that high — and in some cases increasing — numbers of European directors are declining invitations to sit on company boards. The reason? The pressures and costs involved in upholding stricter corporate governance standards in the wake of high-profile blowouts such as Enron and Parmalat.

The scandals have "brought home to a greater extent the importance of quality contributions" from board directors, says Mina Gouran, head of U.K. Board Services at Korn/Ferry. Translation: nobody wants these gigs anymore, so directors might soon be in short supply. "Public companies are worried in Britain that the gene pool for recruiting directors is becoming shallow," warns Digby Jones, director general of the British employers' group the CBI. For European firms listed in the U.S., compliance with America's Sarbanes-Oxley Act — the 2002 law that introduced tough new rules on how public firms report their numbers — is adding to the burden of compliance. Jones claims at least a quarter of his 72 British members listed in the U.S. have said privately: "We've had enough" of strict U.S. rules.

Meanwhile, the Financial Times reported that a majority of Germany's 13 U.S.-listed firms wanted out of the hassle and cost of U.S. regulation. After meeting with German employer groups last week, Jones says British and German firms will be pushing U.S. regulators to make it easier to withdraw their U.S. listing. Directors, loosen those seat belts.

Indicators
Relinquishing Power
The French government unveiled plans to privatize up to 30% of EDF, the world's largest power company, in a share offering next year set to raise up to 311 billion. The sale — the biggest-ever stock offering in France — would fund development of the heavily indebted utility's European operations.

Cultural Revolution
Caving in to state pressure, Wal-Mart said it would allow trade-union representation for its workers in China , if they requested it. The world's largest retailer — known for its hostility toward labor unions — has some 20,000 employees and 40 stores in the communist country.

Trade Body Blow
The World Trade Organization granted the E.U., Japan and five other countries the right to impose $150 million in trade sanctions on the U.S. , in retaliation for an antidumping law ruled illegal by the global trade body. The law hands U.S. firms the proceeds from antidumping duties collected from imported goods sold below market price. Washington said it would work to resolve the issue.

Too Close For Comfort
After only three days in the role, Neelie Kroes, the E.U.'s controversial Competition Commissioner, recused herself from five of Brussels'
antitrust investigations, citing conflicts of interest stemming from her past business links.

DVD killed the VHS star
Dixons , Britain's leading electrical retailer, called an end to its sales of the video cassette recorder. The high-street chain said sales of DVD players now outstripped VCRs by 40 to 1. We'd almost learned to program it.

The Bottom Line
	Lunch at KLM meant milk and sandwiches. Now we all drink French wine and eat foie gras
		JEAN-CYRIL SPINETTA, CEO of Air France-KLM, on corporate culture at the merged airline, which hailed a 41% jump in second-quarter net profit