§ Ms. HarmanTo ask the Chancellor of the Exchequer what was discussed at the last meeting of ECOFIN; and if he will make a statement.
§ Sir John CopeThe Economic and Finance Council met twice in formal session during the Recess. The meeting on 27 July was reported to the House by means of a report deposited in the Library. The Council also met on 28 September in Brussels with the Chancellor presiding. I represented the United Kingdom. Members of the Council also met informally in Bath on 4 to 6 September.
On 28 September, the Council discussed the future financing of the Community. A majority of member states made clear that they continued to believe that the Commission's proposals were excessive and the Council was close to a consensus on the need to make cuts in the Commission's proposals for internal spending and for administration. But wide divergences of opinion remain on major items such as agriculture, cohesion, the structure of own resources, and thus the overall level of spending. There was also some discussion of the Commission's report on the United Kingdom abatement. I made clear that we would not accept any adverse change to the abatement.
The Council agreed to establish a working group of officials with the aim of enhancing the fight against fraud against the Community budget and to report back to ECOFIN in November. The Council also set a work programme for officials to examine the proposed carbon/energy tax and to report back to ECOFIN in December.
A balance of payments loan to Bulgaria was also discussed but without agreement.
The Council also discussed recent monetary events in preparation for the Special European Council.