§ Lord Brougham and Vauxasked Her Majesty's Government:
Whether they will make a statement on the outcome of the latest meeting of the European Community's Economic and Finance Council.
The Paymaster General (The Earl of Caithness)The ECOFIN Council met in Brussels on 13th November. My right honourable friend the Chancellor of the Exchequer represented the United Kingdom.
The Council discussed proposals for revised decisions on the promotion of economic convergence and on co-ordination between central banks, and a common position was reached on the relevant legal texts. These texts form part of the Stage I programme for economic and monetary union, which the Community has agreed will begin on 1st July 1990. Future economic and monetary arrangements beyond Stage I were also discussed. It was agreed that the papers discussed by the Council, including the UK's paper, An Evolutionary Approach to Economic and Monetary Union, should be forwarded for further discussion at the next meeting of the European Council in Strasbourg.
A general discussion was held on recent developments in Eastern Europe.
On the abolition of fiscal frontiers, outline procedures for applying VAT and excise duties to intra-Community commercial transactions were agreed involving minimal burdens for businesses and tax administrations.
Proposals for strengthened mutual assistance arrangements between tax authorities were considered. Discussions will continue at the December ECOFIN.
It was agreed, at the request of Portugal, that the Commission and the Economic Policy Committee should undertake a study into the decline of household saving in the Community.
A proposed amendment to the Solvency Ratios Directive by the European Parliament was also discussed and will be further considered at the December meeting.