§ Mr. CallaghanTo ask the Chancellor of the Exchequer when he last met the Finance Ministers of other EC countries; and what subjects were discussed. [36268]
§ Mr. Kenneth ClarkeI represented the UK at the Economic and Finance Council—ECOFIN—of the European Union in Brussels on 8 July.
The Council debated the incoming Irish presidency's work programme in open session. The programme will focus on European monetary union—EMU—employment, fraud, taxation issues, financial services and Community lending to third countries.
I emphasised the importance we attach to tackling unemployment in the Community, through sound public finances, low inflation and labour market reform. I also urged the need for budget discipline in the Community and rejected any increase in the financial perspectives of the EU budget. I said the UK would continue to play a full and constructive part in discussions of EMU. I strongly supported the presidency's emphasis on fighting fraud. Recalling the UK's long-standing support for EU enlargement, I urged early consideration of reforms to the common agriculture policy and the structural funds so that enlargement could go ahead on the right terms.
The Council welcomed the Austrian convergence programme. It also agreed recommendations to 12 member states—Austria, Belgium, Germany, Greece, Spain, France, Italy, the Netherlands, Portugal, Sweden, Finland and the UK—with excessive budget deficits.
The Council heard Commission and European Investment Bank—EIB—proposals to modify guarantee arrangements for the bank's lending operations outside the EU.
The Council agreed the conclusions of the Commission's 1995 annual report on the fight against fraud and noted progress with the SEM 2000 initiative designed to improve the Commission's financial management.
There was a meeting with Ministers from the associated countries of central Europe, within the framework of the "Structured Dialogue", on the implications for the financial sector of eventual EU membership. The discussion focused on pension reform, EIB work in the region, and the implications of extending the transit regime.