§ Mr. HoodTo ask the Chancellor of the Exchequer what the outcome was of the ECOFIN Council held on 9 March; what the Government's stance was on the issues discussed, including its voting record; and if he will make a statement. [161441]
§ Mr. Gordon BrownI was unable to attend ECOFIN on 9 March. The UK was represented by John Grant, (the UK permanent representative to the EU) and Jon Cunliffe, (Managing director of Macro Economic Policy and International Finance Directorate, HM Treasury).
At the breakfast discussion, the Presidency invited Ministers to comment on a draft programme of future work, prepared by the Economic Policy Committee (EPC), to take forward the four Presidency initiatives 844W on regulatory reform. Ministers reached a common understanding on the need for a work programme along the lines of the EPC paper, and that this should be reflected in the Key issues paper and the Spring Council Conclusions.
ECOFIN adopted a Key Issues Paper for the Spring European Council.
The Commission gave an assessment of national contributions to the Growth Initiative to date and Council conclusions were adopted.
The Council examined the stability programmes for Belgium, Spain. Germany and Portugal and Council Opinions were agreed.
ECOFIN gave its approval for the Commission to conclude a monetary agreement with Andorra.
On the Savings Tax Directive, the UK updated the Council on progress with the UK dependent and associated territories. All eight have now made commitments to apply the same measures as member states. The Netherlands reported good progress on their model agreement for the Antilles and Aruba. The Commission updated on progress with Switzerland and the micro-states. Council reiterated its full determination to come to a satisfactory and timely conclusion of the negotiations with negotiating partners.
On VAT Reduced Rates, the Presidency outlined its intention to consider the matter further at working group level in preparation for discussion at a later ECOFIN.
The Council agreed its Recommendation that the Commission should be granted discharge for its management of the 2002 budget. The UK joined the Netherlands and Denmark in expressing regret at the ninth successive negative Declaration of Assurance (DAS); in calling on the Commission to speed up its financial improvements; and in calling for ECOFIN auditors in member states and EU institutions to work more closely to improve external controls.
The Council agreed a set of conclusions on the budget guidelines for 2005, which are consistent with the principles of budget discipline and UK policy on the community budget.