HC Deb 16 June 1999 vol 333 cc166-8W
Mr. Rammell

To ask the Chancellor of the Exchequer what was the outcome of the ECOFIN Council held in Brussels on 25 May; and if he will make a statement. [85827]

Ms Hewitt

The Chancellor and the Paymaster General attended the Economic and Finance Council meeting in Brussels on 25 May 1999.

Seven draft reports from ECOFIN to the Cologne European Council were considered:

  1. (i) the 1999 BEGs were approved with a few amendments, including a revision to the text on Italian public finances to reflect the possibility of lower growth impacting on Italy's deficit;
  2. (ii) the European Employment Pact was briefly discussed ahead of the joint SAC-ECOFIN meeting which followed ECOFIN;
  3. (iii) the report on Implementation of the Framework for Financial Markets: Action Plan, and draft Council conclusions were approved without amendment;
  4. (iv) the progress report on reinforced tax policy cooperation was agreed subject to amendment of a paragraph on energy taxation to make clear that the Presidency's compromise proposal was discussed but not agreed;
  5. (v) the report on the International Financial System was approved without amendment;
  6. (vi) an oral report from the Chairman of the Economic and Finance Committee on the HIPC initiative set out the areas of agreement and remaining difference among EU member states. It was agreed that the Cologne Conclusions should record where there was agreement;
  7. (vii) the Commission report on Financing Investment in Infrastructure was discussed. It was agreed that further study was required after the Cologne Council.

Eight tax items were discussed:

  1. (i) the Paymaster General presented the second interim report of the Code of Conduct Group to ECOFIN. The report was welcomed. The Group will present its final report to ECOFIN in November;
  2. (ii) on the taxation of savings, the Chancellor said the UK would submit a paper on international bonds to a working group in June;
  3. (iii) the draft Council conclusions on the taxation of interest and royalties were adopted without amendment;
  4. (iv) ECOFIN requested that Coreper re-examine the Energy taxation dossier in light of the Presidency's compromise text and the views of Ministers;
  5. (v) the Presidency's compromise proposal on tobacco excise duties was agreed;
  6. (vi) the consensus necessary to reopen the issue of the abolition of Duty Free was not reached;
  7. (vii) the proposal for a reduced VAT rate on labour intensive services was remitted back to Coreper for further discussion with a request for a list of eligible services;
  8. (viii) Spain put forward a proposal for a high level group on tax fraud. The Presidency asked Coreper to look at the detail of the proposal. The necessary regulations and decision relating to the establishment of a European anti-fraud office by the Commission on 1 June were approved. The Council thanked the Commission for its progress report on the Sound and Efficient Management initiative (SEM 2000) and welcomed the contribution made by this initiative to improving financial management. The Presidency and the Commission urged agreement in the Finnish Presidency of the renewal of the EIB's external lending mandates.

ECOFIN was followed by a joint session of the Social Affairs Council and ECOFIN. The joint Council discussed the proposal for a European Employment Pact.

Mr. Hood

To ask the Chancellor of the Exchequer what was the outcome of the ECOFIN Council held in Luxembourg on 14 June; and if he will make a statement. [87286]

Ms Hewitt

There was no meeting of ECOFIN on 14 June. The next meeting of ECOFIN is scheduled for 12 July. Under the standing arrangements, the agenda will be made available to the Clerk of the House of Commons European Scrutiny Committee when determined by Coreper, approximately one week before the meeting. Copies of the agenda will be placed in the Libraries of both Houses.

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