Dáil Éireann debate -
Tuesday, 28 Apr 1998

Vol. 490 No. 2

Written Answers - ECOFIN Meetings.

Proinsias De Rossa

Question:

49 Proinsias De Rossa asked the Minister for Finance if he will make a statement on the outcome of the meeting of EU Finance Ministers in York, particularly regarding the implications for Ireland of the next round of EU Regional and Social Funds. [9874/98]

Breeda Moynihan-Cronin

Question:

62 Mrs. B. Moynihan-Cronin asked the Minister for Finance if he will report on the discussions in which he was involved at the informal ECOFIN at York; and if he will make a statement on the matter. [9515/98]

Minister for Finance (Mr. McCreevy)

I propose to take Questions Nos. 49 and 62 together.

Informal Council meetings provide an opportunity for Ministers to have a general discussion on issues which will feature on the agendas of future formal Councils. It is not the practice for such meetings to take decisions. At the informal meeting of EU Finance Ministers in York last month, we discussed a range of issues including economic reform in the EU, the world economy, financial services and the euro, and Agenda 2000. There was also some discussion on EMU which focused on the preparations for the meetings of the ECOFIN Council that will take place during the first weekend of May.

We considered the approach to be adopted in the preparation of the annual broad economic guidelines. The Treaty on European Union requires the preparation of such guidelines for the conduct of economic policy in member states. We also discussed how ECOFIN might take forward work on the reform of product and capital markets. There was general agreement that the Council should focus on the implementation of reforms. One of the approaches considered was the submission by member states of short annual progress reports setting out the policies being adopted to render product and services markets more efficient and competitive. These reports would provide a useful input into the broad economic guidelines.

The world economy, particularly in the aftermath of the financial crisis in east Asia, was also discussed. The discussion focused mainly on systemic issues affecting the architecture of the world economic and monetary systems. There was general agreement on the need for greater transparency, more private sector involvement in dealing with financial crises and better supervision and regulation of financial systems.

Other topics included the establishment of a trust fund in the World Bank to assist countries to cope with the aftermath of the financial crisis in east Asia and the creation of a European network of financial and economic experts to make the best European technical assistance available to the countries affected by the financial crisis. The trust fund has since been set up and work on the establishment of the network is ongoing.

Against the background of a mandate given by the Luxembourg European Council on employment, meeting on 20 and 21 November 1997, we considered papers from the Presidency and the Commission on the completion of the single market for financial services. In line with the mandate given at the Luxembourg European Council, the Commission is to make a report to the June 1998 European Council.

President Santer made a presentation on the Commission's proposals on Agenda 2000 which includes,inter alia, the future financial framework of the Union, Structural Funds and the Common Agricultural Policy. A general and informal discussion about the proposals took place. These matters are now under discussion in the relevant Council working groups. The examination/ negotiation process is likely to be a lengthy one and will, in all probability, continue right through this year and into next year as well. ECOFIN is scheduled to consider progress at its May meeting.