Following the announcement that the Budget will take place on 22 March, HM Treasury plans to publish "Public Expenditure Statistical Analyses 2006" on Tuesday 2 May 2006.

The General Affairs and External Relations Council (GAERC) will be held on 20 March in Brussels. My right hon. Friend the Foreign Secretary and I will represent the UK.

The agenda items are as follows:

General Affairs

Preparation of the European Council, 23–24 March

The Council will review the latest set of European Council conclusions focusing on jobs and growth, and Hampton Court follow-up.

Financial Perspective: Inter-Institutional Agreement (IIA)

The Council may discuss the new Inter-Institutional Agreement for the 2007–13 Financial Perspective. The Government's priority on the Inter-Institutional Agreement is to secure an agreement that fully reflects the deal reached in December by the EU Heads of State and Government and the President of the European Commission.

External Relations

World Trade Organisation/Doha Development Agenda (WTO/DDA)

Trade Commissioner Peter Mandelson will brief the Council on progress in the WTO Round. This follows the Brazilian state visit to the UK (7–9 March) and the meeting of the G4/G6 (EU, US, Brazil and India, plus Australia and Japan) in London (10–12 March). We expect a short discussion without conclusions.

Western Balkans

The Council is expected to have a short discussion focusing on Bosnia and Herzegovina. The Council is expected to agree conclusions on Bosnia and Herzegovina, the EU-Western Balkans informal Foreign Ministers meeting held in the margins of the Gymnich on 10–11 March and the death of Milosevic. The Government welcome the expected conclusions particularly on Bosnia and Herzegovina which reflect the need for her to fulfil stabilisation and association agreement conditions (legislative and administrative capacity, police and public broadcasting reform and the International Criminal Tribunal for the former Yugoslavia) as well as the need for progress on constitutional reform.

Middle East Peace Process

We expect the Council to take stock of the developments on the ground following the Israeli seizure of Palestinian militant leader Ahmed Saadat. Discussions may also cover EC assistance to the Palestinian Authority.

Iran

The Council will discuss the latest developments on the nuclear file, and may also cover wider EU-Iran relations. The Council is expected to adopt conclusions.

Iraq

The Council is expected to have a short discussion on the latest developments in the negotiations for Government formation in Iraq. The Council is also expected to approve the mandate for negotiations on a Trade and Cooperation Agreement to commence once an Iraqi Government are in office.

Sudan

The Council is expected to have a discussion on the proposed transition of the African Union peace-monitoring mission in Darfur (AMIS) to a UN force, and the ongoing peace talks in Abuja.

The Government welcome the African Union's decision, at its 10 March Peace and Security Council (AU PSC), to reaffirm their support in principle for a handover of AMIS to the UN, and to extend AMIS' mandate to 30 September. We believe the EU should now press the UN to work towards this date as a deadline for handover.

Lebanon

The presidency has invited Lebanese Prime Minister Siniora to address the Council over lunch on the current situation on the ground.

My right hon. Friend the Foreign Secretary represented the UK at the EU Foreign Ministers' informal meeting (Gymnich) in Salzburg on 10–11 March 2006.

The agenda items were covered as follows:

Middle East

CFSP High Representative Solana and External Relations Commissioner Ferrero-Waldner provided Ministers with an overview of recent events in the Middle East Peace Process. Foreign Ministers will return to the issue at the next General Affairs and External Relations Council (GAERC) on 20 March.

Reactions in the Muslim world to publications in the European media

Foreign Ministers had an exchange of views on how the EU might engage further with Islamic communities in the EU and the wider Islamic world.

Iran

Foreign Ministers discussed the E3's recent meeting with Iranian chief negotiator Larijani and the forthcoming UN Security Council meeting, and wider EU/Iran relations.

Ukraine

The presidency reported on the recent EU-Ukraine Foreign Ministers' Troika meeting after which Foreign Ministers discussed EU-Ukraine relations in light of the forthcoming Ukrainian parliamentary elections on 26 March.

Belarus

Foreign Ministers discussed the worrying and deteriorating situation in Belarus ahead of presidential elections on 19 March, and the possible EU response. They noted the OSCE's Office for Democratic Institutions and Human Rights (ODIHR) is monitoring the elections.

Kosovo

Foreign Ministers were joined by Martti Ahtisaari (UN Status Envoy) for their discussions on Kosovo. After receiving a report from High Representative Solana on recent developments, Foreign Ministers were briefed by Mr. Ahtisaari. Their following discussions focused on support for Mr. Ahtisaari's activities.

EU-Western Balkans Informal Foreign Ministers' meeting

Foreign Ministers discussed the Western Balkans with the Foreign Ministers of the Western Balkans and representatives from Kosovo and international players in the region. As well as recognising the progress made since the Thessaloniki European Council in 2003, discussions focused on five themes: (1) regional political development, (2) regional co-operation and free trade, (3) co-operation on justice and home affairs, (4) people-to-people contacts, and (5) science and education co-operation. A joint statement issued after the meeting.

Dialogue between cultures and religions

Foreign Ministers were joined at lunch by Western Balkans Foreign Ministers and the Turkish Foreign Minister. Foreign Ministers held a discussion on how countries might encourage mutual tolerance and respect.

Since January Bolivia has been experiencing above average rainfall, as well as hail and freezing temperatures in the highlands. Rainfall levels are reported to be at their highest in over 75 years and more is expected over the coming weeks. Some 23 people have died as a result of flooding, while another 280,000 people have been affected. As well as causing damage to infrastructure, homes and crops, reports are emerging of increased incidence of diarrhoea, gastro-intestinal diseases and conjunctivitis in affected highland communities. Some 9,347 families have been evacuated to temporary accommodation. The Bolivian Air Force has been assisting in search and rescue efforts, and the Government are distributing relief supplies.

Following a request for international assistance from the Government of Bolivia, DFID has channelled £100,000 through Care UK to meet immediate relief needs and to rebuild livelihoods. The programme will target 2,700 of the worst affected families, repairing local water systems, supporting health facilities and providing urgently needed relief items such as jerry cans. It will also contribute to programmes to reduce the impact of future disasters, whilst the livelihoods support will help fill the food gap over the coming months.

The US has provided some US$ 300,000 of urgently needed relief items such as plastic sheeting and 100 tons of food. France has recently committed €1million, largely for support to health. The European Commission Humanitarian Aid Office has also provided €1 million for water and sanitation, health, food security and disaster preparedness, of which the UK's share is € 200,000 in addition to our £100,000 of bilateral support.

DFID also remains committed to Bolivia through our multilateral contributions, our support for NGO activity and through our Regional Assistance Plan (RAP) that has set the framework for DFID's involvement in Latin America. The value of DFID's regional assistance plan for 2006 is £8 million.

I represented the UK at the extraordinary Energy Council meeting in Brussels on 14 March. Discussion focused largely on the recent Commission Green Paper on a European strategy for sustainable, competitive and secure energy.

Commissioner Piebalgs described the Green Paper as a comprehensive and balanced response to the Hampton Court agenda. The Commission envisaged a six-month consultation period before taking a view on any additional measures, although some actions could be taken more quickly.

For the UK, I recognised the scale of the challenge and need for prompt action. I emphasised the priority of completing the internal energy market, promoting both transparency and regulatory consistency, and supporting the DG Competition sectoral inquiry. Externally, I underlined the need for a coherent strategy to engage key providers, transit countries and consumers, but particularly Russia and neighbouring countries. I also advocated an ambitious but realistic approach to promoting energy efficiency and renewable energy sources. I drew attention to the UK paper identifying priority actions that the spring European Council might endorse.

Other member states indicated broad support for the Commission's analysis, agenda and level of ambition. They welcomed the focus on open and competitive markets, though one warned against further legislation now, while another questioned how competitive markets could be consistent with ensuring energy security. Other issues to attract comment were support for energy efficiency, a long-term renewables strategy, developing interconnections, and new external initiatives with Russia and EuroMed countries. Many member states emphasised national sovereignty over energy mix. One explicitly supported the UK paper while others touched on many of the actions proposed there.

Commissioner Kroes warned that the Commission would act against mergers or acquisitions that were anti-competitive, but noted that cross-border activity in this area was often a positive sign of the operation of an open and competitive market.

The presidency concluded that the Energy Council would return to the Green Paper in June.

The Council adopted conclusions on energy Ministers' contribution to the 2006 spring European Council. Council also approved the final text of the energy efficiency directive.

In two other brief items, the Energy Council is expected to adopt its own conclusions in June on the Agriculture Council conclusions on the Biomass Action Plan; and Poland made a presentation of its idea for an energy security treaty outside the EU framework.

In the Air Transport White Paper, we promised to examine the scope for further development of Heathrow, consistent with environmental conditions. We are making good progress on this programme of work.

In particular, the review of how to assess air quality around Heathrow, involving independent experts, has recently been completed and we will be publishing a full technical report shortly. A further statement will be made at the time, and copies of the report will be deposited in the Library.

The technical report will include data on air quality around the airport in recent years, comment on emissions sources, and recommend how these can best be represented and modelled in future years. We believe this process, which has itself been subject to peer review, will provide a solid basis for the remaining stages of the project.

In parallel, we have been working with BAA and others to identify how mixed mode might be operated at Heathrow, and its likely impacts in terms of noise and air quality in particular. The work so far has confirmed that the issues are complex. It will take some time to identify options, their impacts and the range of accompanying measures that might be needed to mitigate these, including steps to manage traffic on the surrounding road network. Similar considerations apply equally to the further assessment of the likely impacts of a third runway.

Accordingly, we think it prudent to defer public consultation. This will ensure that when we consult, it will be informed by the fullest possible assessment of impacts, and give consultees the best information on which they can make their responses.

The Employment, Social Policy, Health and Consumer Affairs Council was held on 10 March in Brussels. There were no health or consumer affairs issues. I represented the UK.

The main items were preparation for the spring European Council and the Tripartite Social Summit through the endorsement of a set of key messages to the European Council.

The presidency posed three questions to help focus the discussion. The first question was to the Council asking if it shared the Commission's assessment on the delays of implementing delivery in certain unemployment policy areas. The second question was on the role of the social partners in strengthening the Lisbon process and the third question was on the progress made with social protection and social inclusion. I supported the key messages paper, particularly the focus on implementation and delivery. I stated that we all need to deliver the promises made to Europe's citizens in our national reform programmes and that we must step up a gear to deliver against Lisbon and contribute to the economic well being of Europe.

The Council noted the annual Work Programmes of the Employment Committee and the Social Protection Committee for 2006.

The Council reached general agreement on proposal for a Regulation of the European Parliament and of the Council amending Council Regulation (EEC) No 1408/71 on the application of social security schemes to employed persons, to self-employed persons and to members of their families moving within the Community and Council Regulation (EEC) No 574/72 laying down the procedure for implementing Regulation (EEC) No 1408/71 (Miscellaneous amendments 2005). This is a regular update of the regulation which coordinates social security within the European Union.

The final agenda item was a Commission presentation on the report on transitional arrangements set out in 2003 Accession Treaty. These are the measures allowing member states to restrict, for a transitional period, free movement of workers from eight of the new member states. As the UK has opened its labour market I outlined the benefits the UK labour market has drawn from this. Portugal, Spain and Finland announced that they would be lifting their restrictions from 1 May 2006.