HC Deb 19 July 1994 vol 247 cc94-5W
Mr. Burns

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

Mr. Kenneth Clarke

I represented the United Kingdom at the Economic and Finance Council of the European Union in Brussels on 11 July.

In the morning, the Council discussed, in open session, the work programme for the German presidency. I emphasised that the main task of the EU was to establish the conditions to reinforce the recovery of the European economy and thus create the new jobs that Europe needs to get unemployment down. This required the convergence of economic policies to restore healthy public finances and to keep inflation low. I also emphasised the importance that the United Kingdom attaches to effective action to tackle fraud against the Community budget.

The Council adopted the broad economic guidelines for the economic policies of the Community and the member states which had been approved by the European Council at Corfu on the basis of the text agreed by ECOFIN on 6 June.

The Council agreed in principle to a loan of up to 130 million ecu for Slovakia, to be disbursed in two equal tranches. Disbursement of the second tranche would be subject to further Council agreement.

The Council adopted a set of detailed conclusions on the Commission's 1993 report on fraud, its strategic programme and 1994 work programme. Conclusions were also adopted, at United Kingdom initiative, on the procedure for examining special reports of the Court of Auditors to ensure that effective follow-up action is taken on the issues raised.

There was a general discussion of a proposed withholding tax—taxation of savings—from which no conclusions were drawn. I emphasised the United Kingdom's strong opposition to a tax of this sort. The presidency said that ECOFIN would return to the matter on 27 July.

The Council agreed to hold an orientation debate on 27 July on a VAT definitive system. There was a brief presentation from the Commission on the taxation of small and medium-sized enterprises, of which the Council took note.

No formal votes were taken in the Council meeting.