HC Deb 22 March 1979 vol 964 cc731-2W
Mr. Stallard

asked the Chancellor of the Exchequer if he will make a statement about the meeting of the Finance Council in Brussels on 19 March.

Mr. Healey

The EEC Finance Council met in Brussels under French Presidency on 19 March.

Finance Ministers discussed action to be taken following the meeting of the European Council on 12 and 13 March at which the Finance Council and the EEC Commission were invited to conduct an in-depth examination of how Community policies as a whole could best be directed towards achieving greater economic convergence between member States. The European Council had specifically requested Finance Ministers to examine what action should be taken on the Commission proposals on the utilisation of Community financial instruments and increased economic convergence and to submit a report to the next meeting of the European Council in June.

Following a broad exchange of views on the implementation of the European Council's brief, the Finance Council invited the co-ordinating group on economic and financial policies to continue with its examination of these problems and to report back to the next meeting of Finance Ministers on 23 April, and asked the Commission to submit proposals to strengthen the means of co-ordinating economic policies. The Finance Council also invited the Commission to submit a report on the implications of the current difficulties in the crude oil market for economic prospects in the Community.

The Council conducted its first quarterly examination of the economic situation in the Community and noted that, for the time being, there should be no adjustment to the economic policy guidelines contained in the annual report on the economic situation in the Community for 1978–79.

Finance Ministers held an exchange of views on the proposal for a regulation concerning interest rebates on loans granted in connection with the European monetary system. I argued that the Council should recognise the United Kingdom's less prosperous status and said that I would be unable to agree to the regulation in the absence of such recognition, which would assure the United Kingdom of access to the facility in the event of its joining the EMS exchange rate arrangements.

The Council also heard a statement by the Commission vice-president, M. Ortoli, in which he submitted the proposal for a decision to authorise the first tranche of borrowings to promote investment within the Community.