HC Deb 23 April 1993 vol 223 cc246-7W
Mr. Burns

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. Lamont

The Economic and Finance Council of the European Community—ECOFIN—met in Luxembourg on 19 April. I represented the United Kingdom.

The main agenda item was follow-up to the Edinburgh European Council declaration on promoting economic recovery. The Council discussed a paper prepared by the Commission containing a summary of the action taken both by member states and at Community level. Council conclusions were agreed on the results of the Edinburgh declaration and on the importance of economic relations between the EC and the United States to promoting economic recovery internationally. I highlighted the significant measures taken by the United Kingdom consistent with the Edinburgh declaration, including in particular those in the Budget and Autumn Statement, and welcomed progress made by other member states and with the Community measures. I stressed the importance of early progress towards a GATT agreement and drew attention to the favourable growth prospects in the United Kingdom by comparison with those of other major EC member states.

The Council discussed progress in negotiations with the European Parliament on a new inter-institutional agreement on budget discipline and agreed that the presidency should continue to work towards an agreement consistent with the conclusions of the Edinburgh European Council.

There was a brief discussion of the draft seventh VAT directive which covers the VAT treatment of second hand goods. The main outstanding United Kingdom objective remains to secure a final text which protects the essential interests of the United Kingdom art market.

The Commission urged progress with its proposed directive abolishing withholding tax on interest and royalty payments between companies in different member states. The Council agreed to have a substantive discussion of the directive at a future meeting.

Following a brief discussion of possible European investment bank lending to Albania, it was agreed that the Council would return to this issue at a later meeting.

The Council took no formal votes. The conclusions on promoting economic recovery and economic relations with the United States were agreed by consensus.

Although not part of the formal Council proceedings, there was also a meeting of Finance Ministers from EC and EFTA countries in Luxembourg on the same day. There was general agreement on the value of dialogue on economic issues between EC and EFTA countries. Discussion centred on promoting economic recovery in Europe and the results of the joint meeting of Foreign and Finance Ministers from G7 countries on 14 and 15 April.