This article examines why Members of the European Parliament (MEPs) in 2001 turned
down a proposal for an EU take-over directive? The first explanation focuses on party
ideology. However, MEPs overwhelmingly voted according to national rather than party
lines. Two additional explanations emphasise national characteristics: labour market
legislation (national schemes to protect employees against dismissals) and corporate
governance issues. Labour market legislation can explain the UK and German MEP votes
but not the Swedish and French MEPs votes. These votes can be explained by
emphasising measures against take-overs such as a high level of market capitalisation and
unequal voting rights.