§ Mrs. Virginia Bottomley
asked the Chancellor of the Exchequer if he will make a statement on the outcome of the Economic and Finance Council meeting on 13 July.
§ Mr. Brooke
This meeting was held in Brussels. I represented the United Kingdom.
The Council carried out its second quarterly review of the economic situation in the Community. It was agreed that there was no need to change the economic policy guidelines contained in the annual economic report adopted last December.
Spain and Portugal reiterated their concern about the impact on them on the Council's decision to delay reimbursement to member states of losses incurred on the disposal of butter stocks. The Council took note of their views.
The Council agreed to a United Kingdom request for a derogation from the sixth VAT directive relating to cash accounting for small businesses. The derogation will apply for a transitional period until the Council adopts a Community wide scheme. The Council will review the position after three years.