§ Mr. Budgenasked the Chancellor of the Exchequer if he will make a statement about the meeting of the Finance Council in Brussels on 16 July.
§ Sir Geoffrey HoweThe EEC Finance Council met in Brussels on 16 July under Irish presidency. With the benefit of an introductory statement by the vice-president of the European Commission, and in the light of the preparatory work done by our representatives in the co-ordinating group, we conducted our second 1979 review of the economic situation in the Community.
As envisaged by the European Council last December we agreed upon the necessary re-examination of the provisions of the EMS suggested by the experience of the first six months of operation of the scheme. We also discussed the work to be done over the coming months as regards the European monetary fund.
I sought the agreement of my fellow economic and finance Ministers that in the event of our joining the EMS exchange rate arrangements the United Kingdom would be equitably treated in respect of interest rate subsidies on certain loans granted in connection with the EMS. They agreed that, in that event, the United Kingdom's eligibility for interest rate subsidies would be assessed on the same criteria as had been used for Ireland and Italy. In return I was able to say that the United Kingdom lifted its reserve on the council regulation implementing the interest rate subsidies. We were thus able to adopt a common position on this regulation.
The Council was also able to adopt a common position as regards Community participation in the OECD arrangements in respect of export credit for ships.
The adoption of these common positions will be notified to the Greek delegation in the normal course of consultation agreed upon following the accession of Greece to the Community.