§ Mr. Michael MorrisTo ask the Chancellor of the Exchequer if he will make a statement on the outcome of the latest meeting of the European Community Economic and Finance Council.
§ Mr. MaudeThe ECOFIN Council met in Brussels on 17 December. The Minister of State for Corporate Affairs and I represented the United Kingdom.
Agreement was reached on the general principles which will form the basis of the system for excise controls after 1992. The raising of travellers' allowances was also discussed and it was decided that an agreement should be reached before 31 March 1991. Meanwhile significant progress was made in discussing derogations from the present limits for Denmark and Ireland. As a result, we understand that Ireland will substantially increase her limits on private travellers' duty paid purchases from 1 January 1991. This will be of considerable benefit to traders in Northern Ireland.
An agreement in principle to a common position on the Money Laundering Directive was also reached and, once the legal text has been satisfactorily finalised, this common position should now be formally adopted shortly. The proposed directive is due to take effect from 1 January 1993 and will assist member states in countering the laundering of profits from drug trafficking.
Aid to the Soviet Union and eastern Europe was discussed in the light of agreements for food aid and other assistance reached at the European Council. A proposal to offer guarantees to the European Investment Bank, which would enable the bank to make loans to Czechoslovakia, Bulgaria and Romania, was also discussed. The Council agreed in principle to the participation of the Community in a loan to Czechoslovakia along with other members of the G24 and possibly the oil producing Arab states.
Discussion of the Investment Services Directive and of a proposal for a reinsurance pool for export credits to eastern Europe was postponed.