§ Mr. HoodTo ask the Chancellor of the Exchequer what the outcome was of the ECOFIN Council held in Brussels on 6 November; what the Government' s stance was on each issue discussed, including its voting record; and if he will make a statement. [13437]
§ Dawn PrimaroloI attended the ECOFIN Council.
The Commission presented its communication on company taxation. I made it clear that while the Government might support some action to tackle barriers to cross-border business, they do not support the Commission's proposal for a consolidated company tax base in the EU. The specific proposals contained within the study will be considered in due course.
The Commission presented its progress report on the Risk Capital Action Plan, highlighting the need for the EU to remove barriers to a single EU risk capital market. I stressed the UK's support for the objectives of the action plan, but expressed concern that the proposed prospectuses directive, as currently drafted, would have the effect of reducing the supply, and increasing the cost, of risk capital. The Council agreed that rapid progress on the Risk Capital Action Plan was necessary, in line with the timetable agreed at the Lisbon European Council.
The Council noted Economic Policy Committee reports on the budgetary impact of aging populations and on the measurement of output gaps. It also noted a report from the Economic and Financial Committee on measures to improve the quality and timeliness of Eurozone statistics.
The Council also adopted conclusions with respect to Ireland's compliance with the Council Recommendation of 12 February 2001, which recommended measures to bring the 2001 Irish budget in line with the 2000 Broad Economic Policy Guidelines. The Council agreed that the earlier Recommendation had lost part of its force, mainly due to exogenous shocks that have reduced inflationary pressures in the Irish economy.
ECOFIN agreed that taxation of audiovisual and musical products should be examined by the Commission in the context of its wider review of VAT reduced rates, and not by the Culture Council, as taxation matters are for ECOFIN.
No votes were taken at the meeting.