Charlie McCreevy, the European Union internal market commissioner, on Wednesday defended the introduction of controversial new accounting standards across the Union, but acknowledged that the move was "difficult, cumbersome and expensive" and that some standards required improvements.

Mr McCreevy, a former Irish finance minister and a trained accountant himself, said in a speech last night in Brussels: "I know it's hurting . . . but I would like to reassure you that it will work and that the pain is well worth the gain."