HC Deb 24 October 1979 vol 972 cc211-2W
Mr. Bowen Wells

asked the Chancellor of the Exchequer if he will make a statement about the meetings of the European Economic Community Finance Council in Brussels on 17 September and in Luxembourg on 15 October.

Sir Geoffrey Howe

Both meetings of the Finance Council took place under Irish presidency.

On each occasion the main item on the agenda was the implications of Community policies as a whole, and of the arrangements for financing the Community budget in particular, for the economic performance of individual member States. The discussion was based on a number of documents prepared by the Commission, notably document 9093/79 "Reference paper on budgetary questions" which has been deposited in Parliament. The exchange of views enabled Ministers to express their opinions on the issues involved and to present their requests in concrete form, in accordance with the procedure laid down by the European Council at its meeting on 21–22 June.

I emphasised to my colleagues that the Commission's analysis left no room for doubt over the inequity of the United Kingdom's present and prospective net contribution or over the seriousness of the problem that it posed. I impressed on them the need for urgent and radical action to remedy this injustice and to bring about a broad balance in the United Kingdom's accounts with the Community.

In the light of this discussion the Commission will submit proposals for solutions as soon as possible, so that the Council can examine them at its next meeting on 19 November and the European Council can take decisions at its meeting in Dublin on 29 and 30 November.

At its September meeting the Finance Council also prepared for the annual meeting of the International Monetary Fund and held a brief exchange of views on the economic situation in the Community based on an oral report from the Vice-President of the Commission.