By politics.co.uk staff
George Osborne has had to admit to defeat as a new European law introducing tighter regulation of hedge funds takes the final steps before becoming law.
The European parliament committee voted in favour of the Alternative Investment Fund Managers Directive earlier in the week, and European finance ministers, including Mr Osborne, meet in Brussels today to vote on their own version.
Final legislation will follow later but the British chancellor has given up on preventing the law, despite concerns from the City that it will lead to an exodus of hedge fund and private equity firms from the UK.
Mr Osborne's team called for a delay to the crunch meeting today because of the tenuous state of Britain's government arrangements under the new coalition, but it was rejected.
Only the Czech Republic supports Britain in opposing the directive, according to media reports. Most European states are in favour.