On 23 November 2007, I represented the UK at the Budget Economic and Financial Affairs Council (ECOFIN).

Finance Ministers agreed to adopt Preliminary Draft Amending Budget No. 7 to the 2007 EC Budget, amending the 2007 Budget to reflect latest implementation capacity and thus reducing the level of funding required from member states in 2007.

Finance Ministers agreed to adopt Amending Letter No. 2 to the Preliminary Draft Budget for 2008, which reflected the latest information on agricultural market prices and other developments.

During a conciliation meeting between Council and the European Parliament agreement was reached on the 2008 EC Budget and on the multi-annual financing for the Galileo project and the European Institute of Technology. The agreement establishes total payment levels of €120.3 billion (0.96 per cent. of EU GNI). The European Parliament is scheduled to vote on its own second reading on 13 December, after which the 2008 EC Budget will be formally adopted.

Four joint statements relating to the Budget were also agreed at Budget ECOFIN. These concerned: the financing of Galileo and the European Institute of Technology; Joint Undertakings; and the procedure to implement the budget agreement reached by the Council and European Parliament. The Government are supportive of these statements, which affirm the principle of fair and open competition and call for sound financial management and budget discipline in the areas they concern.