Michael Ferris
Question:26 Mr. Ferris asked the Minister for Finance if he will report on the European Council in Cologne and his participation there. [16130/99]
Written Answers. - European Councils.
The Cologne European Council took place on 3 and 4 June 1999. The Taoiseach, with whom the Minister for Foreign Affairs and I attended the Council, gave a detailed statement on the European Council to the House on 15 June 1999.
Finance Ministers attended the working sessions of the Council on 3 June 1999. The items of most relevance to them were the European employment pact, the broad economic policy guidelines and taxation.
As the Taoiseach has informed the House, the promotion of economic growth and the creation of jobs at EU level remain a particular priorities for all member states. In this context the summit agreed an employment pact. The pact, which was jointly developed within the ECOFIN and Social Affairs Councils, is concerned with developing a new macro-economic policy dialogue between the social partners, fiscal and employment policy makers, and monetary policy makers. To achieve this goal, the pact provides for twice yearly meetings between Finance and Social Affairs Ministers, the social partners, and the European Central Bank. It will complement the enhanced implementation of the employment strategy agreed in Luxembourg and the process of improving the competitiveness and functioning of markets for goods, services and capital agreed in Cardiff. I have always been supportive of the development of the employment pact at the ECOFIN Council, and I believe it will make a worthwhile contribution, especially through the inclusion of European social partners, in the policy debate at EU level.
The European Council also considered, and recommended the adoption of, the broad economic policy guidelines which had been discussed at some length at ECOFIN prior to their submission to the Heads of State or Government. The guidelines identify a co-ordinated mix of macro-economic policies in the context of the stability and growth pact, and wide ranging liberalisation of product, capital and labour markets as key elements to boost competitiveness so as to increase economic and employment growth. I welcome the economic policy recommendations laid down in the 1999 Broad Economic Policy Guidelines. I regard the annual preparation of the guidelines, as required by the treaty, as a very useful framework within which to discuss, and focus attention on, the key policy measures needed to boost sustainable economic and employment growth within the Community.
The European Council also noted the second report from ECOFIN on tax policy co-operation, which sets out progress on tax issues such as the code of conduct on business tax and invited a third report bringing the discussions on these tax issues to a conclusion for Helsinki. One of the issues covered in the report is energy tax. Ireland has not supported Commission proposals for higher taxes on energy because of the possible effects on competitiveness and price stability. I do acknowledge, however, that we need to consider what measures are required in order to achieve the commitments on emissions which we undertook at Kyoto.
Finally, as the Taoiseach has informed the House, the issue of the continuation of duty free was raised at Cologne. Ireland, along with a number of other member states, strongly supported the extension of the duty free regime. However, in the face of strong opposition from other member states, especially Denmark, it was not possible to achieve the unanimity required for an extension.