Ruairí Quinn
Ceist:73 Mr. Quinn asked the Minister for Finance if he will report on the meeting of ECOFIN held in Brussels on 16 February 1998. [5584/98]
Written Answers - ECOFIN Meetings.
The agenda for the meeting of Finance Ministers of the European Union on 16 February last consisted of the following issues.
Preparation for the broad economic policy guidelines — The Council had a general discussion on key economic issues with a view to giving guidance to the Commission on the questions Ministers wish to have addressed in the broad policy guidelines 1998-99. The debate was based on an assessment of the economic situation and outlook in the Community carried out by the Commission and by the economic policy and monetary committees. There was general agreement on the need for continued vigilance in relation to events in Asia. As regards the Community's economic situation, the need to maintain sound public finances, control inflation and further reduce budget deficits was acknowledged.
Preparations for the third stage of EMU — Council was advised that the UK Chancellor of the Exchequer would, in his capacity as President of Council, attend the forthcoming EMI Council meeting on 3 March. Member states were also reminded of the importance of early and timely measures to ensure national central bank legislation would be compatible with the provisions of the Treaty and the Statute of the ESCB.
VAT on labour intensive services — The Council held an orientation debate on the Commission's suggestion that member states would be authorised to apply, on a trial basis and for a limited period, a reduced rate of VAT to certain low-skilled labour intensive services supplied locally, e.g. repair services, cleaning, laundries, domestic care services. The debate was a follow-up to the decision by the Employment European Council of last November that member states should consider this matter. It was agreed that various technical questions be examined further at official level. On the basis of that examination, the Council would decide on whether to request the Commission to table a formal proposal in this area to amend the Sixth VAT Directive.
EIB lending to Bosnia-Herzegovina — The Council took note of a German request that the possibility of extending the EIB's lending activities to Bosnia-Herzegovina be examined in the light of recent developments in the region. The issue is expected to be raised again at the ECOFIN meeting on 9 March when the Council expects to hear further from the Commission on the matter.
In addition to formal agenda items, Ministers had an informal exchange of views, over lunch, with Mr. Camdessus, managing director of the IMF, on the financial crisis in Asia, its background and possible lessons to be drawn from it regarding the restructuring of the international financial system. Discussions covered,inter alia, the need for a reform of banking supervision in certain regions as well as for a code of good conduct ensuring transparency and openness on economic and financial policies, the role of the private sector and the need to take into account social consequences.