Economic and Finance Council (Hansard, 18 March 1993)

§ Sir John Cope

The Economic and Finance Council of the European Community—ECOFIN—met in Brussels on 15 March. I represented the United Kingdom.

The Council approved the Commission's annual economic report for 1993. The report includes the 327W Commission's forecast that the United Kingdom economy will grow faster in 1993 and 1994 than any other major EC country; and set the background for a discussion of national measures to promote economic recovery arising from the initiative launched by my right hon. Friends the Prime Minister and Chancellor at the Edinburgh European Council. The Council decided to reconsider national action to promote recovery and the related measures at Community level at its meeting in April, when it will also be possible to reflect the measures to reduce unemployment and promote sustainable growth announced in my right hon. Friend the Chancellor's Budget statement on 16 March. There was also some discussion of the wider international context to the Community's initiative to promote growth and I gave a report of relevant discussions at the meeting of G7 Finance Ministers in London on 27 February.

The Council examined and endorsed the programme for economic convergence submitted by Greece covering the period 1993–99. The Council welcomed achievements in structural reform and fiscal consolidation made by the Greek Government during 1992 and emphasised the importance of taking the action necessary to meet the ambitious targets it had set itself for the future.

Following a presentation by the president of the European Court of Auditors on the 1991 Community Budget, the Council agreed a recommendation to the European Parliament on granting the Commission a discharge on its implementation of the 1991 budget. I stressed the importance that the United Kingdom Government and Parliament attach to the work of the Court of Auditors and the need to ensure high standards of financial management in the Community's activities.

The Council had a brief discussion of a report from the presidency on progress in discussions between officials on the Commission's proposal for a carbon/energy tax. The German delegation also tabled a paper on its ideas for a harmonised system of withholding tax on interest from bank deposits. It was agreed that this paper would be discussed further at official level before being considered by the Council.

Figures for the percentage growth in bank lending to (a) manufacturing companies and (b) property companies for each year since 1979 and cumulatively over that period
Date	Stock of lending to manufacturing £ million	Annual percentage growth rate	Cumulative percentage growth rate	Stock of lending to property £ million	Annual percentage growth rate	Cumulative percentage growth rate
1979 mid-November	14,875	—	—	2,167	—	—
1980 mid-November	17,583	18.2	18.2	2,242	3.5	3.5
1981 mid-November	18,901	7.5	27.1	2,710	20.9	25.1
1982 mid-November	23,418	23.9	57.4	3,523	30.0	62.6
1983 mid-November	22,209	-5.1	49.3	4,448	26.3	105.3
1984 mid-November	26,397	18.9	77.5	5,420	21.9	150.1
1985 mid-November	27,438	3.9	84.4	7,109	31.2	228.1
1986 end-November	29,599	7.9	99.0	9,341	31.4	331.1
1987 end-November	29,858	0.8	99.4	13,333	42.7	515.3
1988 end-November	40,688	37.2	173.5	21,348	60.1	885.1
1989 end-November	51,175	25.8	244.0	31,963	49.7	1,375.0
1990 end-November	54,291	6.1	265.0	38,996	22.0	1,699.5
1991 end-November	51,586	-5.0	246.8	39,670	1.7	1,730.6
1992 end-November	50,193	-2.7	237.4	27,966	-4.3	1,652.0