§ Mr. David PorterTo ask the Chancellor of the Exchequer if he will make a statement on the outocme of the latest meeting of the European Community's Economic and Finance Council.
§ Mr. MaplesThe Economic and Finance Council of the European Community met in Brussels on 10 February. I represented the United Kingdom.
601WThe Council discussed the Irish Government's programme for economic convergence, and welcomed their achievement to date in reducing inflation and putting their public finances on a sound basis. The Council encouraged Ireland to continue with its policies to reduce its very high level of unemployment through tax reform, improved flexibility, adaptation of industrial policy and wage moderation. The Irish commitment to reduce its public debt to 89 per cent. of GDP in 1993 was also noted as a sign of its Government's determination to continue budgetary consolidation. The Council invited the Commission and the monetary committee to monitor the implementation of the programme and to report back to the Council before the end of 1992.
The Council also carried out its biannual examination of the Community's economic situation, noting the current low growth and high unemployment in the Community and focusing on the need for greater convergence especially in the areas of inflation, labour market flexibility and savings. The Council noted that structural rigidities, especially labour market inflexibility, were major obstacles to price stability, catching up and lower unemployment. It was also agreed that an adequate level of savings is required to maintain investment and economic growth, to support capital accumulation in poorer regions and to allow the Community to meet its external commitments. The Council invited the Commission, the committee of governors and the monetary and economic policy committees to examine these issues further in time for the next multilateral surveillance exercise.
The annual economic report for 1991–92 was adopted without discussion.
The Commission confirmed to the Council that the problems which had delayed the disbursement of a 500 mecu food credit for Russia appeared to have been solved. It was agreed that the first tranche of the separately agreed 1.25 becu loan should also be made available to those other states of the former Soviet Union who had signed a memorandum of understanding with official creditors about the debts of the former Soviet Union. It was also agreed that EC members would work to ensure that the states of the former Soviet Union can become members of the IMF as soon as possible.
The Council accepted the presidency proposals to resolve the outstanding issues in respect of the adoption of the 1992 Community budget. A revision to the financial perspective was agreed which would meet the Council's particular concerns over research and make available up to 450 mecu for technical assistance to the former Soviet Union.
Agreement was also reached on the outstanding detailed issues surrounding the draft directive on the arrangements for the holding, movement and control of goods subject to excise duty, which had been agreed in principle by the Council on 16 December. The directive can now be formally adopted at a future Council meeting without further discussion. The Council also emphasised the importance of adopting the directives on excise duty structures and rates which are currently under discussion and set targets for doing so at the end of April and the end of June respectively.
The presidency outlined an ambitious programme for making progress in the single market and the Commission drew attention to the need to make progress in agreeing directives in the field of company taxation.