ECOFIN

The Chancellor of the Exchequer (Mr. Alistair Darling)
The Economic and Financial Affairs Council will be held on 13 November in Brussels. The items on the agenda are as follows:

Lisbon strategy: The new three-year cycle.

The next governance cycle for the Lisbon strategy will run for three years from 2008-2011. The Council will discuss draft conclusions on the next three-year cycle for the Lisbon strategy, prepared by the Economic Policy Committee. It will also take into account a recent European Commission communication prepared at the request of the 2007 Spring European Council.

Globalisation: Capital and labour flows.

The Council will exchange views on the basis of a report on the economic impact of migration prepared by the European Commission, taking into account a paper prepared by the Economic Policy Committee.

Statistics

The Council will be invited to agree conclusions on EU statistical matters, including the 2007 EFC status report on information requirements, the reduction of the statistical burden, EU statistical governance, and the communication of major statistical revisions, as prepared by the Economic and Financial Committee. The UK welcomes work to reduce the statistical burden on member states.

Taxation

a) VAT package

The Council will discuss a set of measures that will modernise the EU VAT rules for the cross-border supply of services, with particular focus on proposed changes to the rules for the telecoms, broadcasting and e-services sectors. The UK supports the modernisation of the EU VAT regime.

b) Green taxation: Passenger car related taxes.

Ministers will discuss Commission proposals for a new directive on linking car taxation to CO2 emissions.

c) Reduced VAT rates

Ministers will discuss Commission proposals to extend until 2010 most of the new Member States' derogations for reduced VAT rates.

The UK Government are supportive of the proposal to extend most of the temporary derogations granted to those Member States that acceded to the European Union after 1 January 1995.

Global Navigation Satellite System (GALILEO): Financing aspects

Following the discussion at the July ECOFIN, there will be a further exchange of views on the financing of the Galileo project. The UK will continue to express concern with the Commission's financing proposal and argue that the option of reprioritising funds from existing programmes must be considered.

Presentation of the Annual Report by the Court of Auditors Concerning the Financial Year 2006.

The Council will receive a presentation from the European Court of Auditors on the 2006 general budget. This will be the first presentation that Ministers will hear on the 2006 budget, and will mark the start of the annual discharge process.