HC Deb 26 February 2001 vol 363 cc512-3W
Mr. Hood

To ask the Chancellor of the Exchequer what the outcome was of the ECOFIN Council held in Brussels on 12 February; and if he will make a statement. [150526]

Mr. Gordon Brown

I attended the meeting of the Economic and Finance Council of Ministers.

The Council examined and agreed Opinions on Stability and Convergence Reports for Denmark, Greece, France, Ireland, Italy, Austria and the United Kingdom.

The Opinion on the UK programme confirms that the UK is meeting its obligations under the Stability and Growth Pact and has delivered a sound, stable, macroeconomic performance. Government debt is one of the lowest in all member states, and the Opinion welcomes the sustainable long-term position of the UK's public finances. The Opinion also notes that the UK is projected to move into deficit in the medium term. I made clear to the Commission that this reflects the more than doubling of net investment announced in the 2000 Spending Review to promote the renewal and modernisation of the country's capital stock, and that financing this essential investment by borrowing is in line with the Growth and Stability Pact and the Government's fiscal rules.

The Council also adopted a Recommendation addressed to Ireland under Article 99 paragraph 4 of the Treaty establishing the European Community.

The Commission presented its report on the functioning of product and capital markets. The Council discussed a Presidency orientation document on the Broad Economic Guidelines. There was broad support on the need to press ahead with structural reforms and liberalisation of markets, particularly in financial services and network industries; and on the need to promote innovation and research and development. The Presidency will draft a key issues paper for the 12 March ECOFIN.

The Commission presented its Communication on E-commerce and Financial Services. The draft Directive on companies that manage common funds and unit trusts (UCITS) was referred back to the Committee of Permanent Representatives of the member states (COREPER) for further work.

Ministers confirmed their agreement to a proposed supplementary amending budget to allow for measures against BSE.

Political agreement was reached on measures against euro counterfeiting and on the Presidency compromise proposal on derogations for excise duties under the mineral oils Directive.