HC Deb 22 April 1988 vol 131 cc580-1W
Mr. Tim Smith

To ask the Chancellor of the Exchequer if he will make a statement on the outcome of the latest meeting of the European Community's Economic and Finance Council.

Mr. Lawson

The Ecofin Council met in Luxembourg on 18 April. I represented the United Kingdom.

The chairman of the Community's economic policy committee presented a preliminary report on economic aspects of the Commission's proposals for abolishing fiscal frontiers. Finance Ministers gave some preliminary views on the report and agreed to discuss the issues further at their informal meeting in May.

In discussion on implementation of the February European Council conclusions on budget discipline, the Council approved in principle a provisional text of a decision on controlling agricultural guarantee and other obligatory expenditure. The Council also agreed possible elements for a draft inter-institutional agreement between the Council, the European Parliament and the Commission on the development of non-obligatory expenditure over the period 1988 to 1992. Negotiations between representatives of the three institutions are due to take place on 22 April.

The Council received reports by the chairmen of the monetary committee and Committee of Central Bank Governors on the Commission's proposals to liberalise capital movements in the Community. The Council identified a number of issues which Finance Ministers will discuss further.

The Council agreed in substance a derogation for a reduced rate of excise duty for imports of DOM rum into mainland France.