As reported by FINalterntives, hedge funds in Europe—and around the world—have won a reprieve from the European Union’s proposed alternative investment regulations after negotiations over them broke down.

Spain, which holds the rotating presidency of the EU, has abandoned hopes that a deal between the 27 EU governments and the European Parliament, both of which must approve the directive. So the member of the Parliament responsible for the bill has cancelled a vote on the measure, tabling the bill until September.

For previous Compliance Avenue posts on this topic, see:

EU Governments Back Tougher Hedge Fund Rules (posted May 19, 2010)

EU Hedge Fund Rules Stalled Amid UK Opposition (posted March 17, 2010)