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Treasury

Answer

Mr. Hood: To ask the Chancellor of the Exchequer what the outcome was of the ECOFIN Council held in Brussels on 26 to 27 November; and if he will make a statement. [140888] Miss Melanie Johnson: The Chancellor attended the meeting of the Economic and Finance Council of Ministers. Agreement was reached on the substantial content of the Directive on taxation of savings based on the UK proposal of exchange of information rather than a withholding tax on cross-border savings income. The UK policy objective of securing an agreement consistent with the outcome of the Feira European Council--including the requirement for all member states to move to full exchange of information no later than seven years after adoption of the Directive--was achieved. The agreement will enhance the effectiveness of tackling tax evasion, minimise the administrative burden on the City and maintain the competitiveness of UK and EU financial markets. Agreement was also reached on further work under the Code of Conduct and on the timetable for the rollback of harmful measures. The salient points of the Wise Men's initial report on the Regulation of European Securities Markets were presented. Ministers asked the group to continue its work and report finally in February. Their conclusions support the Chancellor's strategy for a more dynamic and efficient single market in financial services, published in July 2000. On the question of VAT registration of non-EU suppliers of e-commerce services Ministers asked for further work on all possible options and for a revised draft directive to be presented to ECOFIN before June 2001. On the economic and financial stability of accession countries it was agreed the Commission would prepare annual macroeconomic analysis for discussion at the high level group with accession countries, followed by ECOFIN conclusions. Ministers emphasised that these arrangements impose no new criteria upon the candidate countries and will promote a dialogue that will facilitate the transition process. The European Court of Auditors presented its Annual Report for 1999. Ministers noted the Report. They will consider discharge on the basis of this report in March 2001. The Council examined and agreed conclusions on updated Stability Programmes for Germany, the Netherlands and Finland.

Secondary information

Type

Written question

Reference

357 c936-7W; 140888

Session

1999-00

Subjects

EU law EU enlargement Financial markets EU economic policy Electronic commerce Personal savings Stocks and shares Taxation VAT EC Finance Council

Link

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