HC Deb 29 June 1995 vol 262 cc772-3W
Mr. Matthew Banks

To ask the Chancellor of the Exchequer if he will make a statement on the recent Council meeting of the Economic and Finance Ministers of the European Union. [30935]

Mr. Kenneth Clarke

I represented the UK at the Economic and Finance Council—ECOFIN—of the European Union in Luxembourg on 19 June.

The Council agreed to a draft recommendation on the broad guidelines for the conduct of economic policy in the Community and in the member states; to the broad thrust of a report on member states' progress with employment policies by the Economic Policy Committee; to conclusions on trans-European networks; and discussed a draft presidency report on preparations for the third stage of economic and monetary union. These were submitted to the Cannes European Council.

The Council reached political agreement on a draft regulation on the protection of the Community's financial interests. The Council also adopted substantive conclusions on the Commission's annual report on fraud for 1994 and work programme on fraud for 1995–96, and procedural conclusions on member states' reports on national measures to combat fraud, waste and mismanagement of Community funds.

The Council agreed that all three new member states have an excessive deficit and that Germany's existing excessive deficit decisions should be abrogated. There was also broad agreement on a proposed regulation concerning harmonised indices of consumer prices across the Community.

The Council adopted conclusions emphasising the need to respect financial perspective ceilings and calling for regular Commission updates on the situation.

The Council discussed Commission proposals for a reduced VAT rate on cut flowers and for mandatory tax relief for biofuels. There was little consensus on the latter proposal and I questioned the utility of further work on the issue.

No formal votes were taken.

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