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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 7 May; what the Government's stance was on the issues discussed, including its voting record; and if he will make a statement. [55301] Mr. Gordon Brown: I attended the ECOFIN Council on 7 May. ECOFIN held an orientation discussion on the draft Commission proposals for the 2002 Broad Economic Policy Guidelines. After further preparatory work in the Economic and Financial Committee, the draft guidelines will be agreed at ECOFIN in June and submitted to the Seville European Council. Political agreement was reached on the draft directive for financial conglomerates and on the articles of the draft directive on market abuse. After clarification of the recitals, the market abuse directive will return at the 4 June ECOFIN for political agreement on the text as a whole. ECOFIN discussed a Presidency key issues paper on energy taxation. It was agreed that further preparatory work should be undertaken, with a view to reaching political agreement at the 4 June ECOFIN. The Commission gave an oral update on progress with third countries on the savings tax directive. Ministers updated the Council on progress with dependent territories. The Commission introduced the Preliminary Draft Budget for 2003. Along with colleagues, I stressed the importance of respecting the Berlin Financial Perspective ceilings. I also welcomed the Commission's proposals to target a greater proportion of external aid at the poorest countries, and called for further progress towards meeting the EU's November 2000 Development Strategy. The draft budget for 2003 will be agreed at the Budget Council in July. ECOFIN discussed the Council's proposal for a revised Financial Regulation. Italy maintained its reserve on the article allowing delegation of aid delivery to member state agencies. Ministers requested further discussion of this by EU Ambassadors in COREPER to enable the regulation to be agreed at the 4 June ECOFIN. Under Any Other Business, the Swedish Finance Minister emphasised the need to keep track of member states' progress in meeting the development aid target agreed at the recent Monterrey Conference. It was agreed that ECOFIN would consider the issue at a later date. Following discussion over lunch, ministers also adopted texts on the economic and financial aspects of the EU-Latin America summit and on further work on arrangements for financial supervision and stability. No votes were taken at the meeting.

Secondary information

Type

Written question

Reference

55301; 385 c434-5W

Session

2001-02

Subjects

Abuse Developing countries Development aid Energy Financial markets EU action EU economic policy Personal savings Taxation EU aid Caribbean Brazil EC Finance Council Latin America

Link

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