Willie Penrose
Question:39 Mr. Penrose asked the Minister for Finance if he will report on the meetings of ECOFIN he has attended since 10 November 1999; and if he will make a statement on the matter. [26908/99]
Written Answers. - Ministerial Meetings.
I have attended two meetings of the ECOFIN Council since 10 November 1999. These were a formal meeting on 29 November 1999 and an informal meeting on 9 December 1999. The meeting on 29 November was followed by a joint ECOFIN-Labour and Social Affairs Council. The main focus of ECOFIN's agenda on 29 November 1999 was preparation for the European Council in Helsinki, particularly in respect of the EU tax package, economic policy co-ordination, and Commission reports on financial management.
As regards the taxation package, Ministers had a discussion on the three elements of the taxation package, namely, the savings directive, the interest and royalties directive and the code of conduct. Arising out of this discussion, it was recognised that the savings directive presented the largest single obstacle to an agreement being reached. It was agreed that work to find a way of overcoming the main obstacle would be continued up to the Helsinki European Council, and the Presidency subsequently arranged for an informal meeting in Helsinki on 9 December to discuss the issue further.
As regards economic policy co-ordination, Ministers approved a report to the Helsinki European Council. As regards financial management, Ministers took note of a presentation by Commissioner Schreyer both of the Commission's Annual Report on the Fight against Fraud in 1998 and its report on the work of the Personal Representatives Group on Sound Financial Management – the SEM 2000 initiative. In addition, Ministers took note of a presentation by the President of the Court of Auditors on the court's annual report on the implementation of the EU budget for the year 1998.
Ministers also agreed, following a recommendation by the Commission, on the abrogation of the decision concerning the existence of an excessive deficit in Greece. This reflects improvements in Greece's budgetary situation in recent years. Finally, Ministers considered a progress report by the Commission on the action plan for financial services, which is designed to ensure further progress towards a single market for financial services.
Over lunch, discussion included a summary by the Presidency of the Euro-11 meeting held earlier that morning. The joint ECOFIN-Labour and Social Affairs Council meeting which followed the formal ECOFIN Council reached unanimous agreement on three texts comprising the 1999/2000 employment package.
As indicated above, the informal ECOFIN meeting on 9 December 1999 dealt solely with the issue of the savings directive as this element of the tax package requires specific attention in order to overcome the current impasse. Prior to the informal ECOFIN the presidency circulated a new document which addressed some of the concerns regarding the inclusion of eurobonds within the scope of the directive. The proposed solution sought to have a simplified system of information-reporting on the basis of existing national legislation, particularly the information which financial institutions gather under money laundering provisions.
No agreement was reached at the informal meeting and the issue was sent forward for discussion at the European Council meeting on 10 December 1999. The European Council meeting has asked for further work to be done by a high level working group and for a report with possible solutions to be sent to the European Council in June 2000 at the latest.