§ Mr. Quentin Davies
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 13 June. I represented the United Kingdom. The Council approved the interinstitutional agreement between the Council, the European Parliament and the Commission on the implementation of the conclusions of the Brussels European Council on budget discipline.
The Council reached agreement on a directive providing for complete liberalisation of capital movements in the Community and a regulation combining the two existing mechanisms for medium-term balance of payments support. The complete abolition of exchange controls by those countries that still retain them will represent an important move towards a freer and less-regulated Europe, and an essential step towards the completion of the single market.
The Council also agreed that there should be further discussion on tax exemptions for temporary importations of means of transport.