Economic and Finance Council

HC Deb 20 October 1998 vol 317 cc1067-8W

Mr. Derek Twigg

To ask the Chancellor of the Exchequer if he will make a statement on the Council meeting of the Economic and Finance Ministers of the European Union held on 12 October. [55671]

Mr. Gordon Brown

I attended the Economic and Finance Council—ECOFIN—of the European Union in Luxembourg on 12 October.

The Council started in restricted session with a discussion of the Finnish Stability programme and the Greek Convergence programme which are part of the implementation of the stability and growth pact. These programmes are important to ensure that the launch of the euro is successful. There was agreement to Council opinions for Greece and Finland.

On preparation of stage 3 of EMU, three items designed to improve multilateral surveillance were approved. The first was a letter by the chairmen of the Monetary Committee and the Economic Policy Committee on the broad economic policy guidelines. The Commission expressed support for a debate in Council in February. The second item was an opinion of the Monetary Committee on the content and format of stability and convergence programmes. The third item on multilateral surveillance was an opinion of the Economic Policy Committee on the content and format of reports on structural reform. The Presidency reminded member states that commitment to reform was essential at the highest levels and that the Economic Policy Committee would report again to ECOFIN on 15 March.

The Commission presented a report on the Community's Own Resources. There followed a discussion where interest was expressed by some member states in the concept of co-financing the Common Agricultural Policy. In response to criticism by some member states of the UK rebate, I emphasised that, even after the rebate, the UK remains a larger net contributor to the EU budget than Member States with a greater capacity to pay. The UK rebate remains fully justified.

The Presidency presented a paper on the future financial framework. There was significant support for real terms stabilisation of the financial perspective by 2006 at around current real-terms levels and for this to be reflected in the ECOFIN report to Vienna.

The chairman of the Economic Policy Committee summarised a statement from the Committee on some key employment policy issues. This statement was accepted by the Council.

The Finance Ministers of the EFTA member states joined ECOFIN Ministers for lunch. A range of topics were discussed including international economic issues.