§ Mr. Chapmanasked the Chancellor of the Exchequer if he will make a statement about the meeting of the European Community Economic and Finance Council in Brussels on 8 July.
§ Mr. LawsonI represented the United Kingdom at this Council.
In accordance with the new arrangements for budget discipline, the council reached an agreement by qualified majority to fix the reference framework for 1986 at 29.7 billion ecu (about £17 billion). The European Parliament will be invited to give its views before the reference framework is formally adopted. Detailed consideration of the financing of Community policies will then proceed in the Budget Council which will also have before it fuller information in particular on the impact of inlargement.
The Council also reviewed the economic situation in the Community. It decided there was no need to change the policy guidelines agreed in December 1984. It took note of the budget guidelines issued to individual member states.
Ministers also discussed tax measures to encourage co-operation between undertakings in different member states. This subject will be considered further at the October Council. It was agreed that the 20th VAT directive which concerns special national aid for German farmers should now be adopted as an A point at a forthcoming Council.
While there are a number of technical issues to be resolved before the directive on emissions from engines of motor vehicles can be adopted, the United Kingdom was able to lift the ad referendum reserve on the agreement on standards for vehicle emissions reached at the Environment Council on 27–28 June.