What were the two major scandals in Europe in 2003 that led to a reassessment of the continent's approach to governance?

The two major scandals that prompted a reassessment of governance in Europe in 2003 were indeed linked to Ahold and Parmalat. The Ahold scandal involved serious financial misreporting by the Dutch supermarket giant, which led to significant revelations about internal governance shortcomings and accounting discrepancies. This scandal raised questions about how corporations were managing their financial reporting and the overall integrity of their governance structures.

Parmalat, an Italian dairy and food corporation, became infamous for one of the largest frauds in European history, which involved a massive accounting scandal revealing that the company had inflated its assets and understated its liabilities. The collapse of Parmalat also highlighted failures in corporate governance and the need for stricter regulation and oversight mechanisms across Europe to protect investors and ensure transparency.

These events catalyzed discussions among regulators and policy-makers regarding the adequacy of existing frameworks around corporate governance, leading to a push for reforms that would enhance accountability, improve transparency, and ultimately protect shareholders. Thus, these scandals served as crucial turning points in how corporate governance was perceived and structured in Europe.