§ Dr. TwinnTo 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 and the meeting of the intergovernmental conference on economic and monetary union.
§ Mr. Norman LamontThe ECOFIN Council met in Brussels on 25 February. The intergovernmental conference on economic and monetary union met later the same day. I represented the United Kingdom at both meetings.
Formal agreement was given to the balance of payments loan to Greece of 2.2 billion ecu (about £1½ billion) which had been agreed in principle at ECOFIN on 28 January. The first tranche will consist of 1 billion ecu, but the release of further tranches will be subject to the agreement of the Council in the light of the Greek Government's performance in implementing its programme of economic reform.
The Council continues to consider a number of proposals for loans from the Community to help meet the financing needs of the countries of eastern Europe. These loans would form the joint contribution of member states to the demand for loans from the G24. In this context, a Community loan to Czechoslovakia of up to $500 million was formally agreed. The Council also agreed that the Community's pledge of a 50 per cent. contribution, up to $250 million, to a loan by the G24 to Hungary, should be in addition to the Community's present medium-term loan.
The Presidency announced its intention to establish a high-level group of officials to consider key questions arising from the proposed investment services directive.
The intergovernmental conference focused on the issues arising in connection with the conduct of economic policy under stage 3 of EMU. I repeated the United Kingdom reserve on any move to a single currency. During a general-discussion on principles and objectives, multilateral surveillance and the importance of avoiding excessive budget deficits, a wide range of views were expressed. The presidency did not attempt to draw substantive conclusions. The next meeting of the IGC at ministerial level will be on 18 March.