§ Mr. Gerald BowdenTo ask the Chancellor of the Exchequer if he will make a statement on the outcome of the latest meeting of the European Community's Economic and Finance Council.
§ Mr. LawsonThe ECOFIN Council met in Luxembourg on 17 April. I represented the United Kingdom.
The council reached agreement with a delegation of the European Parliament, under the conciliation procedure, on the regulations required to implement the new own resources decision of June 1989 which include measures to tighten controls against fraud.
The council had a further discussion of the Commission's proposals on taxation of savings, of direct tax measures to encourage cross-border co-operation between enterprises, and of the proposed 18th VAT directive.
The council discussed indirect tax approximation, stressing the need to consider alternative approaches for the abolition of fiscal frontiers.
The council heard a presentation from the Commission on the revised proposal for a second banking co-ordination directive.
The council adopted a common position on the proposed directive on own funds of credit institutions.
The President of the Commission outlined the main features of the report of the Committee on Economic and Monetary Union which is to be discussed further by the council. I made it clear that, while supporting practical steps within the framework of the existing treaty designed to improve economic and monetary co-operation, the United Kingdom cannot accept the transfer of sovereignty implied by the proposals for full economic and monetary union contained in the Delors report.