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Treasury

Answer

Mr. Hood: To ask the Chancellor of the Exchequer (1) what the outcome was of the ECOFIN Council held on 17 February; what the Government's stance was on the issues discussed, including its voting record; and if he will make a statement; [218157] (2) what the outcome was of the ECOFIN Council held on 8 March; what the Government's stance was on the issues discussed, including its voting record; and if he will make a statement. [221266] Mr. Gordon Brown: At ECOFIN on Thursday 17 February Council Opinions on the Stability and Convergence programmes for Belgium, Denmark, Estonia, France, Germany, Ireland, Italy, Malta, Poland, Slovakia and Finland were all adopted. The Council adopted a decision under Article 104(9) of the Treaty recommending measures for Greece to correct its excessive deficit. The Council extended the 2005 deadline to 2006. The Council welcomed the commitment of Greek authorities to continue with their fiscal consolidation effort. Commissioner Almunia outlined the key components of the Commission's Strategy on Fiscal Statistics (adopted last December), which includes the building of the legal framework, improving the operational capacities of the relevant Commission services, and establishing European standards on the independence of national statistical institutes for the fulfilment of their mission. Conclusions were adopted. Discussion of Stability and Growth Pact (SGP) reform options took place, on both the preventative arm and the corrective arm of the SGP. The UK highlighted that proper account needed to be taken of the economic cycle, of debt sustainability and of public investment. An orientation debate was held on European Economic Reform ahead of the Spring European Council on 22 and 23 March 2005. Three items were discussed: draft Council Conclusions following the Commission's Implementation report on the Broad Economic Policy Guidelines (BEPGs); a Key Issues Paper put forward by the Presidency; and the Commission's Spring Report on the mid-term review of the Lisbon Strategy. The Conclusions on the BEPGs were adopted. The UK supported the Commission's call for a renewed focus on growth and jobs. The Presidency concluded that the momentum for the Lisbon Strategy had to be maintained, jobs and growth should be prioritised as Europe's relative performance is weak; and Lisbon National Action Programmes were important for increasing the implementation of reforms. On Financial Perspectives for the period 2007-13 the Presidency set out a work programme with a view to political agreement in June. At ECOFIN on Tuesday 8 March Council opinions on the Convergence Programmes for Cyprus, Latvia, Lithuania, Hungary, Slovenia and the UK and on the Stability Programme of Spain were all agreed. A Recommendation (Article 104.7) to Hungary to correct its excessive deficit was agreed. The Council examined the principle elements for reform of the Stability and Growth pact ahead of the Spring European Council on 22 and 23 March 2005. Further discussion is planned at a meeting of Ministers on 20 March 2005. In the context of the Lisbon economic reform agenda, ECOFIN adopted its Key Issues Paper in preparation for European Council on 22 and 23 March 2005. The Commission outlined the key points of member states' Annual Contributions to the Growth Initiative and informed Ministers that the European Investment Bank (EIB) would be undertaking a mid-term Review of the Initiative by 2007. Council conclusions were adopted. The Commission informed the Council that the Communication on Better Regulation would be published on 16 March. As part of this, the Commission indicated that the pilot projects on reducing the administrative burdens on businesses would be completed this year. I reiterated the need for the pilot phase to be completed by September and the Commission undertook to consider this. The Council adopted Guidelines for the 2006 Budgetary Procedure and a Recommendation for Discharge of the 2003 EC Budget.

Secondary information

Type

Written question

Reference

432 c546-7W; 218157;221266

Session

2004-05

Subjects

Business EU action EU economic policy Economic growth Statistics Regulation Reform Stability and Growth Pact EU Economic and Financial Affairs Council

Link

View this Written question on www.publications.parliament.uk