Hansard

ECOFIN

Volume 523: debated on Tuesday 15 February 2011

Download text
Back to top Previous debate Next debate
The Chancellor of the Exchequer
(Mr George Osborne)

The Economic and Financial Affairs Council will be held in Brussels on 15 February 2011. The following items are on the agenda:

Economic Governance

The Council will hold a policy debate on the legislative proposals on economic governance. The Government agree that member states should have robust national fiscal frameworks. However, it will continue to work to ensure that any legislation on fiscal frameworks does not impinge upon UK fiscal sovereignty.

Savings Taxation Directive and Anti-fraud Agreements with Third Countries

Following agreement on the Administrative Co-operation Directive at ECOFIN in December, the Council will hold an orientation debate on proposals to amend the Savings Directive and to pursue anti-fraud and tax information exchange agreements with Andorra, Liechtenstein, Monaco, San Marino and Switzerland. These are related measures which aim to improve transparency and exchange of information to combat cross-border tax evasion. The measures have been discussed on previous occasions but progress has been difficult due to political reservations by two member states. The Government support the presidency’s aim to maintain momentum on the good governance in taxation package with a view to legislative agreement in May.

Preparation of the European Council (24-25 March 2011)

a) Macro-economic and fiscal guidance

Ministers will adopt Council conclusions on macro-economic and fiscal guidance for the EU, under the new European semester. The conclusions focus on implementing a rigorous fiscal consolidation, correcting macro-economic imbalances, ensuring stability of the financial sector, growth and job-enhancing structural reforms, and mobilising community level growth drivers. The Government believe the reform priorities set out in the conclusions are important and necessary steps to help promote economic growth in the EU and its member states.

b) Appointment of an Executive Board Member of the European Central Bank

Council will also adopt a recommendation for the European Council on the appointment of an Executive board member of the European Central Bank. Two candidates have officially been put forth to replace Austria’s Gertrude Tumpel-Gugerell when her eight-year term on the ECB’s Executive board expires 31 May: Peter Praet, executive director of the National Bank of Belgium; and Elena Kohutikova, former member of the Slovak central bank’s monetary policy board. The Government support strong governance for the ECB, although as a non-euro area member state, the UK will not vote on this item.

Implementation of the Stability and Growth Pact

The Council will discuss the assessment of action taken by Bulgaria, Cyprus, Finland and Denmark in the context of their excessive deficit procedures, on the basis of a communication from the Commission. The Government expect the Council to agree that these member states have taken effective action regarding their deficits.

Preparation of the G20 Meeting of Finance Ministers and Governors (18-19 February)

The Council will discuss and agree a terms of reference which will form the basis of the EU’s contribution to the meeting of G20 Finance Ministers on 18-19 February. The meeting is scheduled to discuss: the global economy and framework for strong sustainable and balanced growth; reform of the international monetary system; commodities; financial regulation; follow-up of the report from the UN advisory group on climate change financing; and development issues.

Discharge procedure in respect of the implementation of the 2009 EU budget

Finance Ministers will discuss the Council’s recommendation to the European Parliament on the 2009 discharge procedure following the report from the European Court of Auditors (ECA) on implementation of the 2009 EU budget. The Government consider it unacceptable that the ECA has not been able to grant a positive statement of assurance on the EU budget as a whole for the 16th year in succession.

Budget guidelines for 2012

Ministers will adopt conclusions on the budget guidelines for 2012. These note that rigorous fiscal consolidation efforts will continue in 2012, and it is therefore essential that the 2012 budget take into account member states’ economic and budgetary constraints. They also stress the need for realistic budget estimates. The Government are determined that the efforts made to curb the EU budget’s growth in 2011 must be stepped up for the 2012 budget.