European Union talks on granting hedge funds a Continental passport to do business and subjecting them to oversight by the new securities regulator has hit an impasse, The Wall Street Journal reports.

Discussions with the European Parliament were cancelled to allow the individual EU governments to resolve their differences this coming Monday and Tuesday.

France is skeptical of the passport that will permit hedge funds to readily do business in all 27 EU countries. Germany, the U.K., Sweden, the Netherlands and the Czech Republic, on the other hand, are uncomfortable with the powers proposed for the new European Securities and Markets Authority and say they might dissuade overseas hedge funds from coming to Europe.