§ Mr. Matthew BanksTo ask the Chancellor of the Exchequer if he will make a statement on the most recent meeting of the Economic and Finance Council.
§ Mr. Kenneth ClarkeI represented the United Kingdom at the Economic and Finance Council of the European Union in Brussels on 16 January.
The French presidency outlined its work programme for the coming Economic and Finance Councils, based on the three priorities: sustainable growth and the creation of employment; the enhancement of the credibility of European policies; and the completion of the single market.
In reply, I welcomed the presidency's work programme, particularly its stress on improvements in the fight against fraud. I stressed that economic conditions in member states were now the best for several years and that it was vital to use this opportunity to tackle long-term unemployment and other structural problems through more flexible labour markets. I underlined the need to respect the convergence criteria on low inflation and reduced public deficits set out in the Maastricht treaty and stressed the need for a systematic review of the Community's balance of payments support outside the EU.
The Council agreed to the presidency's procedural proposals for dealing with the follow-up to the Essen European Council on: the financing of trans-European networks; the parameters within which member states wishing to do so could introduce a CO2-energy tax; fraud and financial management; and the employment situation.
No formal votes were taken at the Council meeting.