§ Mr. Kenneth Bakerasked the Chancellor of the Exchequer if he will make a statement about the meeting of the Finance Council in Luxembourg on 18 June.
§ Mr. BiffenThe EEC Finance Council met in Luxembourg on 18 June under French presidency. The Council approved without discussion its report to be submitted to the European Council in Strasbourg on 21–22 June concerning the convergence of economic performance. This absence of discussion at the Finance Council in no way affected the Government's determination to continue to press for urgent action to reduce the present 681W inequitable United Kingdom net budgetary contribution.
In advance of the European Council in Strasbourg we had an exchange of views about the effects of the current state of the international oil market on the Community's economic prospects. Following oral reports from the chairman of the committee of the governors of the central banks and the chairman of the monetary committee, the Council had an exchange of views on the operation of the European monetary system during the past three months. There was also further consideration of a regulation concerning interest rate subsidies on loans granted in connection with the EMS; it was agreed to resume examination of the matter at the next Finance Council on 16 July.
Following an exchange of views the Commission was asked to prepare appropriate proposals for strengthening the co-ordination of economic policies of member States.
The Council noted a statement by the German delegation on the subject of tripartite conferences and asked the Committee of Permanent Representatives, when further study was made of possible improvements to tripartite conference procedure, to ensure that account was taken of the economic and financial, as well as the social, aspects.
After a brief exchange of views on the Community position in the Organisation for Economic Co-operation and Development—OECD—concerning amendments to the understanding on export credits for ships, the Council remitted further examination of the question to the Committee of Permanent Representatives.
I should also like to take this opportunity to inform the House that Her Majesty's Government intend to participate in the deposit of reserves on a swap basis with the European monetary co-operation fund in exchange for European currency units. This will make it clear that, whatever our decision in due course on participation in the exchange rate arrangements, we desire to be closely involved in the evolution of the ECU and of European monetary institutions.