§ 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. [17101]
§ Mr. Kenneth ClarkeI represented the UK at the Economic and Finance Council of the European Union in Brussels on 17 February.
The Council carried out an examination of the Belgian new convergence programme for the period 1997 to 2000 and welcomed the programme's strategy for fiscal consolidation as credible, adequate to the particular public finance conditions of Belgium and well adapted to the institutional structure of the state.
The Council agreed in principle to provide exceptional financial assistance to Armenia, Georgia and Tajikistan. A final decision will be taken at a later meeting following a formal Commission proposal for this assistance. This is subject to a UK parliamentary scrutiny reserve.
The Council also discussed the possibility of providing macrofinancial assistance to the Former Yugoslav Republic of Macedonia. This will be discussed again at a later meeting. It is subject to a UK parliamentary scrutiny reserve.
The Council then discussed the economic situation in the European Union. All member states were cautiously optimistic about the prospects for 1997 but agreed on the need for structural reform, including labour market flexibility, to tackle unemployment.