Dessie Ellis
Question:112. Deputy Dessie Ellis asked the Minister for Finance if he will report on the ECOFIN meeting of 14 May and the Eurogroup meeting of 13 May. [23950/13]
View answerTuesday, 21 May 2013
Questions (112)
Written answers
The Eurogroup met on Monday 13th May and was chaired by the President of the Eurogroup Mr Jeroen Dijsselbloem. The President of Eurogroup speaks on behalf of Eurogroup and held a press conference after the meeting on Monday afternoon. The Eurogroup discussed a range of issues and released statements on Greece and Cyprus. The Ecofin Council met on 14th May 2013 and as Ireland holds the Presidency of the Council of the EU, I as the Minister for Finance chaired the meeting. Minister of State, Brian Hayes TD represented Ireland at the meeting. The meeting was attended by representatives of all 27 EU Member States and of Croatia (who has observer status until their accession into the EU on 1st July), representatives of the Commission and the European Central Bank, the European Investment Bank, the Economic and Financial Committee and the Economic Policy Committee. The following issues were discussed.
Banking Recovery and Resolution
The Council discussed a proposal for a directive establishing a framework for the recovery and resolution of credit institutions and investment firms, focusing in particular on the design of the bail-in instrument.
Draft Amending Budget No. 2 to the General Budget 2013
The Council reached a political agreement on draft amending budget no. 2 for 2013, on the basis of a proposal from the Irish Presidency. Draft amending budget no. 2 for 2013 is about meeting outstanding payment needs in the 2013 EU budget for which the Commission proposed a total amount of €11.2 billion. The Council's political agreement is to provide €7.3 billion in a first stage and to focus this amount on measures to support economic growth, create jobs and tackle unemployment, especially among young people, and as a second stage, to take all necessary steps to ensure EU’s obligations are met on the basis of further information from the Commission. The Council also noted that the agreement in the draft amending Budget has been linked to the negotiations on the Multiannual Financial Framework and as such the Council stated that "nothing is agreed until everything is agreed".
Savings taxation
The Council approved a mandate for the Commission to negotiate amendments to the EU's agreements with Switzerland, Liechtenstein, Monaco, Andorra and San Marino on the taxation of savings income.
The aim is to ensure that the five countries continue to apply measures that are equivalent to the EU's directive on the taxation of savings income, which is being amended. The Commission will negotiate on the basis of a draft directive amending the savings directive (2003/48/EC), aimed at improving its effectiveness and closing certain loopholes so as to prevent its circumvention.
The Council also discussed a draft directive aimed at strengthening the EU's directive on the taxation of savings income (2003/48/EC). It agreed to revert to the matter at a forthcoming meeting, in the light of comments made by Ministers.
Tax Evasion and Fraud
The Council then adopted Council Conclusions on Tax Evasion and Fraud which reaffirm that all Member States recognise the importance of taking effective steps to fight tax evasion and tax fraud, and recognises the need to tackle aggressive tax planning.
Macroeconomic Imbalances
The Council considered the Commission’s publication last month of its in-depth reviews of macroeconomic imbalances in 13 Member States and adopted Council conclusions on the issue.
Towards a deep and genuine Economic and Monetary Union
The Council took note of the presentation by the Commission of two communications on the further development of the EU's economic and monetary union (EMU) and held a brief exchange of views. The communications relate to the introduction of a "convergence and competitiveness instrument" and ex-ante coordination of national economic policy reforms. They follow up on work carried out by the European Council, which last December called on its President to present in June 2013, after consultations with the member states, possible measures and a timetable for the further development of EMU.
Follow-up to International Finance meetings
The Council took note of the outcome of International Finance Ministers' meetings held in Washington D.C. on 18-21 April, namely:
- G20 Finance Ministers' and Central Bank Governors' meeting;
- Annual spring meetings of the IMF and the World Bank.
Discussions in Washington covered the global economic situation; the G20 framework for growth; reform of the international financial architecture; financial regulation; financing for investment; and energy, commodities and climate finance.
Over breakfast on the morning of the 14 May, the President of the European Council Herman Van Rompuy made a presentation on tax evasion and fraud and this was followed by an exchange of views. Ministers were then debriefed on the outcome of the Eurogroup the day before and discussed the economic situation, on the basis of a presentation given by Vice President Olli Rehn on the Commission’s Spring European Economic Forecasts.
It is evident from the above list that the Council completed a very full programme of work at this meeting.