§ Mr. Hendersonasked the Chancellor of the Exchequer if he will make a statement about the meeting of the European Community Finance Council in Brussels on 15 December.
§ Sir Geoffrey HoweThe Finance Council was the last to meet under this Luxembourg Presidency. I represented the United Kingdom.
The main business of the Council was to discuss amendments to the Community's position for the negotiations to renew the OECD export credit consensus. Compared with the position reached in November, a number of changes were agreed, including raising to 0.8 per cent. the increase in the proposed minimum interest rate applicable to exports to the developing countries. The Council also agreed to review in mid-1981, and before the end of 1981 at the latest, the avisability of adjusting the minimum interest rates, in the light of the then prevailing economic and monetary situation.
The Council adopted the Commission's annual economic report and the economic policy guidelines for 1981. The Council also considered a Commission communication on energy and economic policy and invited the Commission and the Economic Policy Committee to do further work, particularly on the question of energy pricing.
The Council held a short debate on special measures to help Italy following the earthquake. In pursuit of the remit from the European Council, to which the Prime Minister referred in her statement to the House on 3 December—[Vol.995, c. 398]—the Commission had proposed that loans totalling 1000 meua, with a 3 per cent. interest rate subsidy, should be made available to Italy to help with reconstruction. The Council agreed in principle to the Commission's proposal.