§ Mr. Tim SmithTo 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. Norman LamontThe Economic and Finance Council of the European Community met in Brussels on 8 July. The Minister for Corporate Affairs and I represented the United Kingdom.
The Council held a discussion of economic convergence within the Community as part of the regular multilateral surveillance of the economies of member states. The Council agreed that greater progress towards economic convergence was desirable and that, where necessary, member states would submit medium-term economic programmes to promote convergence. The Council's conclusions have today been placed in the Library in accordance with article 8 of the 1990 convergence decision.
The revised annual economic report was adopted, a copy of which is also in the Library.
Over lunch there was a brief procedural discussion of EMU in which it was agreed that the next ministerial meeting of the IGC would be held on 9 September.
368WThe investment services directive was again discussed, but without further agreement. The Minister for Corporate Affairs continued to argue for a liberal and market-sensitive directive.
Lending outside the Community by the European investment bank was also discussed. The Council agreed to return to the technical and financial aspects of this question in the autumn on the basis of a report by the Commission and the EIB. It was agreed that in the meantime the bank could consider extending loans to countries with which the Community had a co-operation agreement on a case-by-case basis in accordance with its existing statute.
The agreement by the European Council to offer a balance of payments loan to Algeria was discussed, but no agreement was reached as to the amount or details of such a loan.
It was agreed that a loan guaranteed by the Community of up to 375 million ecu should also be offered to Romania provided that each tranche was matched by equal contributions from members of the G24 outside the Community and other countries.
The Council also adopted a declaration on the Commission's report on countering fraud against the Community budget in 1990, setting out additional objectives for the year ahead; and the United Kingdom made a brief statement stressing the importance of this issue and the need to monitor results, and welcoming the agreement to review the scope of the Commission's 45-point action plan in the light of experience.