§ Mr. Maplesasked the Chancellor of the Exchequer if he will make a statement about the meeting of the European Community's Economic and Finance Council on 9 December.
§ Mr. BrookeI represented the United Kingdom at this Council.
The Council had a further discussion of the Commission's annual economic report for 1985–86. The report was generally welcomed, although we and some other member states made it clear that we do not agree with every word in it. The report, as amended by some changes mainly to the country chapters in part 2, was adopted by the Council.
The Council continued its consideration of indirect tax harmonisation in the context of the internal market, it agreed in principle to the setting up of a high level group to consider the subject in greater depth.
The Council examined a progress report from the EC's economic policy committee on labour markets and employment. Its conclusion that labour market flexibility is a crucial element in tackling the problem of unemployment was broadly endorsed.
There was discussion also of aspects of the system of commercial interest reference rates for export credits; of tax measures to encourage co-operation between undertakings in different member states; and of Community competition rules and insurance. Consideration of these issues will be taken forward at future Councils.