§ Mr. HoodTo ask the Chancellor of the Exchequer what the outcome was of the ECOFIN Council held on 4th November; what the Government's stance was on the issues discussed, including its voting record; and if he will make a statement. [137073]
§ Mr. Gordon BrownI attended ECOFIN on 4 November.
The Council decided to postpone the discussion on the Excessive Deficit Procedure for France (recommended under Article 104(8)) until the next ECOFIN on 25 November. France has committed to a budget deficit of less than 3 per cent. of GDP in 2005. The presidency concluded that postponement was the favoured option.
The Council endorsed the Economic Policy Committee (EPC) report on the impact of ageing populations on public finances and confirmed the mandate to EPC to produce new common budgetary projections by mid-2005 on the basis of approach outlined in the EPC report. The Council also invited the EPC to produce a study on economic incentives affecting retirement. I led the orientation debate on the Transparency Directive and expressed strong concerns about the regulatory burden of introducing mandatory quarterly reporting across the EU. I supported the principle of transparency but stressed the importance of balance between it and burdensome reporting requirements. The Presidency concluded that there was a realistic chance of finding a solution and Coreper should continue discussions, ahead of the next ECOFIN, according to European Parliament timetable.
On structural indicators for the spring report 2004, the Council adopted the following conclusions:
The ECOFIN Council considers that the Commission's shortlist of headline indicators needs to be improved to contain indicators measuring economic reform. The EPC should continue its work with a view to achieving this.Council conclusions were also agreed on the role of customs in the management of external borders.
At the request of Belgium, the Council discussed the process for finalising agreements with the UK's dependent and associated territories and Member States, concerning the taxation of savings. It was concluded that this issue would be discussed further at alater stage.
Before the formal meeting, a dialogue with the Candidate Countries took place. The Commission congratulated the Accession States on preserving 171W macroeconomic stability in difficult times, but stressed that challenges remained on public finances and public sector reform.
Over lunch, Finance Ministers discussed the Intergovernmental Conference. The Chancellor stressed that tax harmonization and a federal approach to fiscal policy would be damaging for Europe's economic interests. Finance Ministers should work together to ensure outcomes from the Inter-Governmental Conference that enhanced the ability of European countries to raise productivity and employment levels and ensured that Member States retain a central role in determining their economic policies.