HC Deb 23 May 1994 vol 244 cc8-9W
Mr. Simon Burns

To ask the Chancellor of the Exchequer if he will make a statement on the most recent Council meeting of European Economic and Finance Ministers.

Mr. Kenneth Clarke

The Economic and Finance Council of the European Union—ECOFIN—met in Brussels on 16 May. I represented the United Kingdom.

We discussed the economic situation in the European Union on the basis of the Commission's latest forecasts and in the context of preparing to revise the broad economic guidelines. Overall, the Commission's forecasts were more optimistic than its previous ones, although it emphasised the need for action on budget deficits. I welcomed the Commission's acknowledgement of the improvement in United Kingdom unemployment and the measures to consolidate the United Kingdom's public finances. But I felt that the Commission was too pessimistic on the United Kingdom growth and inflation outlook. I stated that the United Kingdom was well on the way to sustained growth and low inflation. There was a presentation of the Commission's annual report on fraud and of its anti-fraud strategy, which will be discussed in greater detail at a later Council.

The Council discussed the follow-up to the conclusions of the Brussels European Council on the Commission's White Paper, "Growth, Competitiveness and Employment". President Delors gave a presentation of the Commission's latest progress report. I supported a German proposal to establish a deregulation "commission" of experts to increase the pace of deregulation and the removal of unnecessary burdents on businesses. I also spoke about the need for the June ECOFIN to send clear conclusions to the Corfu European Council, and said that there was no need for new Community instruments to finance trans-European networks.

There was also discussion of financial assistance to countries in central and eastern Europe. Political agreement was reached on loans to Moldova and Romania for balance of payments support, and the Council confirmed a loan to Bulgaria. The Council deferred discussion of a grant to Albania and an additional loan to Bulgaria.

There were no formal votes on issues discussed at the Council.