HC Deb 18 June 2002 vol 387 cc320-1W
Mr. Hood

To ask the Chancellor of the Exchequer what the outcome was of the ECOFIN Council held on 4 June; what the Government's stance was on the issues discussed, including its voting record; and if he will make a statement. [62929]

Mr. Gordon Brown

I attended the ECOFIN meeting on 4 June.

ECOFIN had an orientation discussion on the Broad Economic Policy Guidelines. These will be considered further at the ECOFIN meeting on 20 June prior to the Seville European Council.

The Council noted that a qualified majority existed on a presidency compromise text on the occupational pensions directive.

ECOFIN also had an orientation discussion on the draft directive on prospectuses, and the Commission presented its sixth half-yearly progress report on the Financial Services Action Plan.

ECOFIN adopted conclusions on the tax package. I reported on the significant progress the UK has made in discussions with our overseas and dependent territories on taxation of savings, which was welcomed by the Council. The Commission gave an oral update on progress on negotiations with third countries. ECOFIN called for greater progress to be made, and a presidency letter to the Swiss President was agreed.

Presidency guidelines on energy taxation were discussed. These were discussed further by the High Level Group (HLG) on Energy Taxation on 11 June, and the chairman of the HLG will report back to ECOFIN on 20 June.

There was a conciliation meeting with the European Parliament to examine the remaining outstanding items on the recasting of the financial regulation. Agreement was reached on the draft text.

ECOFIN discussed the VAT treatment of cross-border motor vehicle leasing, and invited the presidency and the Commission to examine the situation and report at the end of 2002.

The Council noted a preliminary oral report on issues of corporate governance by Professor Winter (Chairman of the High Level Group on Company Law).

ECOFIN also adopted texts on the preparations for the World Summit on Sustainable Development and on the implementation of the new EIB Euro-Mediterranean Facility.

No votes were taken at the meeting.