Dáil Éireann Debate, Wednesday - 18 September 2013
185. Deputy Andrew Doyle asked the Minister for Finance the parameters of the discussions held with Ministerial colleagues at the Informal Meeting of Ministers for Economic and Financial Affairs in Vilnius, Lithuania from 13 to 14 September 2013; if he will detail any agreements reached; if he will provide an update on matters discussed; and if he will make a statement on the matter. [37418/13]
View answerUnder the Lithuanian Presidency, an Informal meeting of the ECOFIN Council took place in Vilnius on 13-14 September 2013. Minister of State Brian Hayes deputised for me at the meeting. The meeting was attended by representatives from the Finance Ministries and Central Banks of all 28 EU Member States, representatives of the Commission and the European Central Bank, the European Investment Bank (EIB), the Economic and Financial Committee (EFC) and the Economic Policy Committee (EPC), and invited guests. The following issues were discussed.
Economic outlook and financial stability
The Commission and the European Central Bank reported on the main developments regarding the macro-economic and financial outlook of the euro area and the EU as a whole. Completion of the Banking Union was also discussed, with particular focus on proposals for a Single Resolution Mechanism, the work on which will continue and will be progressed by the Lithuanian Presidency in the weeks and months ahead.
Improving access to finance for SMEs – European policy options
The European Council on 27-28 June 2013 concluded that SME financing is a key priority. Following a proposal made by the Irish Presidency, a High-Level Expert Group on Long-Term Finance and SMEs was established. The focus of the group is on concrete capital market instruments to stimulate and permanently diversify SME and mid-cap financing and the financing of infrastructure projects. The Group produced an interim report in July and will publish its final report in November. Based on the interim report, Ministers had a discussion on which options are best to address the SME financing issue. On foot of this discussion, the Presidency will write to President Van Rompuy in advance of the European Council on 24-25 October.
Follow-up to the G20 Leaders’ Summit and preparation of the IMF/World Bank Annual Meetings and G20 ministerial meeting.
This item was primarily for information in the run-up to the IMF and World Bank Annual Meetings. Discussion at the Annual Meetings will focus on the global economy and implementation of ongoing IMF reforms, in particular, on the ratification of the 2010 quota and governance reform as well as the agreement (due by January 2014) on the IMF quota formula and the 15th General Review of Quota.
The Presidency reported on the main outcomes of the G20 Leaders’ Summit in St Petersburgh on 5-6 September. While the Summit had been overshadowed by the situation in Syria, a discussion on economic progress had been fruitful and agreement on tax transparency was a major breakthrough with the Leaders renewing their commitment to automatic exchange of information as the new global standard. The G20 Leaders also endorsed the OECD action plan on tax base erosion and profit shifting.
Future shape of financial system - from the Banking Union architecture to efficient structure of financial markets
Ministers had a discussion on the Future of the EU banking system. The focus of the meeting stressed the need for further convergence with the objective to arrest the fragmentation of banking along national lines. To achieve this we need to credibly break the link between the banks and sovereigns, as called for by the European Council.
Bruegel, the Brussels-based think-tank, presented a paper on the future shape of the financial system, highlighting two points: firstly the need for a banking system that is credibly delinked from sovereigns and the further development of other aspects of financial intermediation.
Fight against tax fraud and tax evasion – towards a global standard on automatic exchange of information
The Council had a general discussion on the development of a global standard for the automatic exchange of information between tax authorities. The OECD Secretary General was present for this discussion. Ministers supported this initiative and stressed the importance of a globally co-ordinated approach and that EU initiatives should be totally consistent with approaches being implemented or considered elsewhere.
