---

EU: Economic and Financial Affairs Council

My right honourable friend the Chancellor of the Exchequer has made the following Written Ministerial Statement. At its meeting of 24 January 2006, the Economic and Financial Affairs Council took note of a presentation from the current Austrian and future Finnish presidencies on a work programme for ECOFIN for 2006. The council adopted opinions on the stability and convergence programmes for Finland, the Czech Republic, Denmark, Hungary, Slovakia and Sweden and adopted a decision under Article 104(6) and a recommendation under Article 104(7) of the EC Treaty with regard to the UK. The council discussed procedures for following up matters relating to the forthcoming Commission annual progress report on the Lisbon strategy in the run-up to the spring European Council. The council adopted conclusions on an economic policy committee report regarding the quality of public finances in the EU. The Austrian presidency concluded that, subject to confirmation by the Czech Republic, Poland and Cyprus, political agreement could be reached on an extension of the arrangements for reduced rates of VAT for labour-intensive services until 2010. The presidency subsequently announced on 30 January that the Czech Republic and Cyprus had agreed the proposal. Discussions are ongoing between the presidency and Poland. The council held an exchange of views on issues related to energy markets. The Paymaster General, Dawn Primarolo MP, represented the UK.