§ Mr. HoodTo ask the Chancellor of the Exchequer what the outcome was of the ECOFIN Council held in Brussels on 4 December; what the Government's stance was on each issue discussed, including its voting record; and if he will make a statement. [22057]
§ Mr. Gordon BrownI attended ECOFIN on 4 December.
ECOFIN agreed reports to the Laeken European Council on pensions and on structural performance indicators (to measure progress on economic reform). The report on pensions respects the position of the Government and other member states that decisions on pensions are primarily for member states. I reminded ECOFIN colleagues of the importance of economic reform and it was agreed that ECOFIN should closely monitor progress.
There was a discussion of the tax package, including the directive on taxation of savings. I made it clear, along with 11 other Finance Ministers, that the substantial content of this directive had been agreed by ECOFIN in November 2000, reflecting the principles agreed at the Feira European Council, and that this should now be reopened. The Commission noted that it would shortly commence formal negotiations with third countries on the adoption of equivalent measures. I reported on the Government's discussions with United Kingdom dependent territories, noting that every jurisdiction recognised and fully supported the need for greater co-operation in the fight against tax abuse and evasion.
ECOFIN received a written report from the Code of Conduct working group, which the Paymaster General chairs. There was no discussion of the report.
The Commission provided a progress report on its negotiations with the European Parliament on the Lamfalussy procedure to fast-track financial services legislation. During a short discussion of the draft prospectus directive, I emphasised that it must meet its objective of reducing the cost of capital, particularly for small and medium-sized enterprises.
The Court of Auditor's annual report was presented to Ministers.
The Commission noted that, since not all member states had yet ratified the new Own Resources Decision, the 2002 Community budget would in the meantime need to be based on the old Own Resources Decision. The UK has already ratified this Decision.
Along with six other Finance Ministers—a majority of those speaking—I called for further analysis of the Galileo satellite navigation project before additional funds are committed.
Most member states could accept a March 2002 cut-off date for ending Government guarantees for airline insurance. The Government recently extended their scheme—Troika—until 22 January 2002
771WIn a discussion of the forthcoming UN Financing for Development (FfD) conference, I emphasised that EU aid should be reformed to make it more effective and that untying was an important way to meet aid targets. I also advocated the international development trust fund as a way to lever in more resources to reach the $50 billion target in the Zedillo report.
The Commission agreed to examine an Austrian proposal to tackle VAT fraud.
It was agreed that concrete proposals would be brought forward on gender mainstreaming the Broad Economic Policy Guidelines.
Agreement was not reached on EIB loans to EFTA countries. This will be discussed again on 13 December.
ECOFIN was followed by a dialogue with the Finance Ministers of the 13 candidate countries and the European central bank, which focused on the need for structural reforms in the candidate countries and real convergence with the EU. A joint communiqué was agreed.
No votes were taken at the meeting.