§ Mr. Ian Stewartasked the Chancellor of the Exchequer if he will make a statement about the meeting of the Finance Council in Brussels on 14 May.
§ Sir Geoffrey HoweThe EEC Finance Council met in Brussels on 14 May under French presidency. The main subject under discussion was the question of how Community policies as a whole, including the Community budget, could best assist greater convergence of economic performance between member States. This followed a remit from the European Council of 12–13 March. This discussion gave me an opportunity to make clear the wish of the new United Kingdom Government to work closely and harmoniously with our fellow members for the successful development of the European Community, of which we are a committed member.
I had, however, to make it clear that it is an unsustainable position that two of the least prosperous members of the Community, the United Kingdom and 6W Italy, will in 1980 be far and away the largest net contributors to the Community Budget. The European Council next month must focus attention on the problem, and I emphasised the need for it to be put forward in such a way that Heads of Government would be able to take decisions so that solutions could be applied without delay.
The Council adopted a decision empowering the Commission to contract loans for the purpose of promoting investment within the Community which is consistent with priority Community objectives in the infrastructure and energy sectors. Ministers discussed the effects of the disruption of the oil market on the Community's economic prospects, and will return to this subject at their next meeting.
It was decided to defer until the June meeting of the Finance Council further consideration of a regulation concerning interest rebates on loans granted in connection with the European monetary system.
The Council had an exchange of views about the macro-economic implications of work sharing, and commissioned further work on this subject.