HC Deb 14 December 1994 vol 251 cc648-9W
Mr. Matthew Banks

To ask Mr. Chancellor of the Exchequer if he will make a statement on the most recent Council meeting of the Economic and Finance Ministers of the European Union.

Mr. Kenneth Clarke

I represented the United Kingdom at the Economic and Finance Council of the European Union in Brussels on 5 December.

The Council broadly endorsed the Netherlands' convergence programme for 1995 to 1998 and the Commission's assessment of it.

The Council adopted a slightly amended version of the ECOFIN report to the Essen European Council on the employment aspects of the White Paper follow-up, subject to a Belgian reserve. I thoroughly welcomed the report with its analysis of the causes of structural unemployment and in particular the problems caused by high levels of social protection in some areas.

The Council endorsed the "Main Recommendations" of the Christophersen Group report on the trans-European networks aspects of the White Paper follow-up, omitting any reference to possible new Community financial instruments in the future.

The Council adopted the ECOFIN report to the Essen European Council on implementation of the broad economic guidelines requested by the Brussels European Council in December 1993, and carried out the multilateral surveillance required by article 103(3) of the treaty.

The Council agreed in principle to an 85 million ECU loan to the Ukraine subject to the signature of an IMF stand-by arrangement and to the rapid implementation of the EU/G7 action plan for the closure of Chernobyl. The Council noted the exceptional nature of the loan and agreed to a review of EU lending priorities. The Council reached political agreement on Commission proposals to provide macro-financial assistance to Algeria and Slovakia.

The Council agreed with the recommendations of the European Monetary Institute in its opinion that decisions on the transition to the third stage of economic and monetary union will be taken in full accordance with the relevant articles of the treaty and the protocol on the convergence criteria.

The Council heard a presidency progress report on improving the fight against fraud in the Community. The Commission emphasised the need for greater efforts in this area, and circulated a communication showing the areas where it would put emphasis in the coming year. I stressed that the fight against fraud was a top priority for ECOFIN and that strong conclusions would be needed at the forthcoming European Council. I underlined the need for rapid progress to be made on the Commission's programme, particularly on the third pillar legislation, and said that the recent report of the Court of Auditors on the 1993 budget had revealed unacceptable levels of fraud, waste and mismanagement, of great concern to the public.

The Council agreed to an adjustment of the financial perspective to take into account the enlargement of the union.

The Council heard progress reports on taxation of savings, the second VAT simplification directive, the carbon-energy tax and biofuels, but adopted no conclusions.

No formal votes were taken at the Council meeting.