§ Mr. BarnesTo ask the Chancellor of the Exchequer if he will make a statement on the outcome of the Ecofin Council held on 27 November, giving details of all votes and of all decisions which were determined by unanimity or without dissension. [1973]
§ Mr. Kenneth Clarke[holding answer 4 December 1995]: I represented the United Kingdom at the Economic and Finance Council of the European Union in Brussels on 27 November.
The only formal vote taken by the Council was a unanimous decision to adopt a regulation on the European system national and regional accounts, which will come into effect in 1999. The Council agreed to attach to the regulation a recommendation that where data was available member states should provide them from September 1998.
There was no Council support for a request by Germany that the Commission produce a study on the use of a reduced rate of VAT on the sale of agricultural produce as a means of compensating farmers affected by revaluations in the agri-monetary system.
All other issues at the Council were agreed without dissension.
The Council agreed the following: a report on the implementation of the broad economic guidelines; procedural conclusions on the reports by member states on measures being taken to combat fraud against Community funds; and a draft report on employment, 158W jointly prepared by the Economic and Finance Council, the Social Affairs Council and the Commission. All these will be submitted to the Madrid European Council.
The Council discussed the reference scenario for the transition to a single currency, on which the Council will also report to the Madrid European Council. The Council agreed on the principle that fiscal stability after the beginning of the third stage of economic and monetary union was essential and that further work on achieving this will be required.
The Council discussed the arrangements for guaranteeing European investment bank loans to third world countries. The Council agreed that a decision to revise the guarantee system will be taken within twelve months following an EIB—Commission study. During the interim period current guarantee arrangements will continue.
The Council considered the recent defaults, by Georgia, Armenia and Tajikistan on EU loans granted in 1991 as part of a humanitarian aid package to the former Soviet Union. The Council asked the Commission to produce proposals for a grant aid operation from Community funds to resolve this problem.
The Council welcomed progress made by the Commission on an initiative to improve its financial management and working practices.
The Commission also presented the conclusions of a study into the effect of currency fluctuations on the internal market.