§ Mr. Matthew BanksTo 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. [4625]
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§ Mr. Kenneth ClarkeI represented the UK at the Economic and Finance Council—ECOFIN—of the European Union in Brussels on 11 November.
The Council considered a draft report to the Dublin European Council on reinforced convergence procedures and a new exchange rate mechanism in third stage of EMU.
The Council considered a report from the Commission on the stability pact for ensuring budgetary discipline in the third stage of EMU. This will be discussed again at the December Council.
The Council took note of progress in the working group which is preparing Community regulations to form the legal framework which will govern how the single currency will be introduced and used. This work will be considered again at the December Council.
The Council took note of Commissioner Monti's report on taxation in the European Union. It was agreed that a high-level tax policy group should continue to examine taxation issues.
Commissioner Liikanen presented the report of the high-level group which has been looking at sound and efficient management 2000—the Commission's programme of financial management reform. The report will be discussed again at the December Council.
The Council discussed further lending to Ukraine, including the disbursement of the second tranche of the 200 mecu loan agreed in 1995 with a view to its disbursement when the loan conditions have been met.
The Council also discussed the renewal of the European investment bank's lending mandates. The mandates are due to be agreed by the Council by the end of the year and will therefore be discussed again in December.
The Council considered convergence reports from the Commission and the European Monetary Institute, as required by article 109j of the Treaty on European Union, and agreed that a majority of member states did not satisfy the criteria and that the Community should therefore not move to the third stage of economic and monetary union in 1997. A final decision on the issue will be taken by the Council meeting as Heads of State and Government in December. This decision is a legal formality as the European Council at Florence has already ruled out a 1997 start date for the single currency.