A cynical observer of the tortured path of financial reform legislation in the European Union might argue that EUpolicymakers are almost as determined as their American counterparts to violate Rahm Emanuel's first rule of overning by letting a good crisis go to waste. But the legislation that most directly affects the private equity industry - the draft directive on alternative investment fund managers - remains very much alive, even if attempts to reach early agreement between Member States on the outstanding issues have been put on hold following some heavy lobbying. Whether this bolsters or disproves the cynic's argument may be both a matter of perspective and the final shaping of the directive as it enters a critical stage in the legislative process.