HC Deb 11 December 2003 vol 415 cc601-2W
Mr. Hood

To ask the Chancellor of the Exchequer what the outcome was of the ECOFIN meeting held on 25 November; what the Government's stance was on the issues discussed, including its voting record; and if he will make a statement. [142978]

Mr. Gordon Brown

I attended ECOFIN on 25 November.

The Council discussed the Excessive Deficit Procedure for France and Germany (recommended under Article 104(8)). Council did not vote in favour of the Commission proposals under both Article 104(8) and 104(9) to enforce the excessive deficit procedures against both countries, therefore the decision was not adopted. It agreed non-binding Council conclusions and a separate declaration.

The UK did not support the Commission's proposal under Article 104(8). The Council reached an agreement on a general approach on the Transparency Directive. A compromise was reached on the important issue of mandatory quantitative quarterly reporting, whereby companies with shares on regulated EU markets will be required to disclose qualitative information, similar to trading statements, about the company's performance at least once in the six-months periods following the date of their annual and half-yearly reports. This was a success for the UK and followed our intervention at the 4 November ECOFIN when I expressed strong concerns about the regulatory burden of introducing mandatory quarterly reporting across the EU.

The Council noted a Commission presentation on its implementation report on the Risk Capital Action Plan and Conclusions were adopted inviting the Commission and the Financial Services Committee to undertake further work.

The Council took note of a report from the Code of Conduct group on the implementation of rollback and standstill. The group was asked to report back on rollback and standstill before summer 2004.

On VAT Reduced Rates, Council agreed to extend the VAT labour intensive services experiment for two years and produced a declaration to this effect, inviting the Commission to make the appropriate proposals. proposals.

The Commission presented its company tax communication, which was discussed further at the conference on EU corporate tax reform in Ostia on 5–6 December.

On the structural indicators to be used in the Commission's Spring Report for the European Council, the Commission welcomed a Joint Committee text. The Council invited the Permanent Representatives Committee (COREPER) to finalise the issues for approval at the next General Affairs (GAERC) meeting.

The Council adopted a report on European Action for Growth to be forwarded to the European Council in 12–13 December. The Council reached political agreement on an increased rate of Trans-European Networks co-financing of 20 per cent, for certain projects.

The Council adopted two reports concerning the European Investment Bank (EIB): on the mid-term review of EIB lending mandates and on the review of the EIB facility for Euro-Mediterranean Investment and Partnership (FEMIP).

The Council agreed to an additional allocation of EUR 500 million for lending to Russia and the Western Newly Independent States by the EIB until January 2007. In a unilateral declaration the UK noted agreement reflected the assurance given by the Commission that the increase is compatible with the margin in the Loan Guarantee Reserve". Council also agreed to develop further and reinforce FEMIP within the EIB.

On the Investment Services Directive, a UK-drafted Declaration was agreed, that will accompany the formal adoption of a Council Common Position on 8 December. This Declaration helpfully indicates Council's desire to reach an agreement with the European Parliament on this Directive by April 2004.

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