Ruairí Quinn
Ceist:28 Mr. Quinn asked the Minister for Finance if he will report on the ECOFIN and Euro 11 meetings held in Brussels in January 1999; and if he will make a statement on the matter. [5438/99]
Written Answers. - EU Meetings.
The Euro 11 meeting, held on 18 January 1999, was informed by the Presidency of progress to date on the implementation of arrangements for the external representation of the euro as agreed by the European Council meeting in Vienna on 12 and 13 December 1997. There was an initial discussion on the outlook for the euro area economy in 1999 and on the appropriate policy mix. The Commission was to undertake further analyses for the next meeting of Euro 11.
The agenda for the meeting of Economic and Finance Ministers (ECOFIN) held on the same day, consisted of the following issues: 1. Presidency and Commission Work Programme
As is usual at its first meeting under a new Presidency, ECOFIN held a discussion and open debate on the German Presidency's programme for the first six months of the year. President Santer also set out the European Commission's annual work programme for 1999 in the ECOFIN area.
The German Presidency emphasised employment, EMU, taxation and Agenda 2000 as the key issues for its Presidency. President Santer underlined the fact that the Commission shared these priorities. I joined with delegations in broadly welcoming the Presidency programme, and in particular the strong emphasis it contained on promoting growth and employment and combating unemployment.
2. Implementation of Stage 3 of EMU: Statistical Requirements
The Council endorsed the report of the Economic and Financial Committee on statistical requirements in stage 3 of EMU which underlined the need for methodologically sound, consistent and timely economic and budgetary statistical data in order to assist in making economic policies mutually consistent under monetary union.
3. Implementation of the Stability and Growth Pact
Stability Programme of Ireland (1999-2001): opinion of the Council.
The Council examined Ireland's stability programme which covers the period 1999-2001. Com missioner de Silguy congratulated Ireland on its excellent performance and noted the very positive fiscal results. The Council considered the macroeconomic projections in the programme to be attainable. The healthy budget outturn of 1998 means that Ireland already fulfils the stability and growth pact objective of a budget balance close to balance or in surplus and is forecast to continue to do so over the period of the programme. The Council opinion was adopted.
Stability Programme of Austria (1998-2002): Opinion of the Council
The Council also examined the stability programme of Austria which covers the period 1998-2002. The Council commanded the achievement of significantly better budgetary outcomes than targeted. However, the forecast reduction in the general government deficit is seen to be very modest. While the programme is in line with the provisions of the stability and growth pact, the Council noted that the budgetary strategy adopted by the Austrian Government does not provide for any additional safety margin. The Council encouraged the Austrian Government to execute the 1999 budget plan as rigorously as possible and to do its utmost to overachieve the budgetary targets set in the stability programme. The Council opinion was adopted.
4. Agenda 2000:
ECOFIN briefly considered the progress of Agenda 2000 negotiations, focusing on certain outstanding issues in relation to the Inter-Institutional Agreement. The Presidency programme seeks to achieve an overall agreement at the Berlin European Council on 24-25 March. The Presidency was to undertake further work with a view to moving towards agreement on the “negotiating box” in accordance with that timetable.
Ministers discussed the following items over lunch:
Duty Free Sales
The Council noted the Commission's intention to submit in February a communication focusing on employment aspects in the sectors affected by this issue.
Date for the Introduction of Euro Notes and Coins: E-Day
An idea floated by the Belgian Finance Minister to bring forward the date for the introduction of euro notes and coins was informally discussed at lunch. The European Commission was invited to carry out a final review of the question but the majority of Ministers did not favour changing the date.
Euro 11 Debriefing
A debriefing session on what happened at the Euro 11 meeting was held.
Meeting of Heads of State or Government
It was confirmed that there would be an infor mal Heads of State or Government meeting to be held in February.
Liz McManus
Ceist:29 Ms McManus asked the Minister for Finance if he will report on the ECOFIN and Euro 11 meeting held in Brussels on 8 February 1999; and if he will make a statement on the matter. [5439/99]
The Euro 11 meeting, held on 8 February 1999, had a discussion on the economic outlook in the euro-area for 1999, and on the appropriate policy mix. There was also an initial general discussion on the preparation of the 1999 broad economic policy guidelines, to be adopted by the ECOFIN Council in accordance with Article 103(2) of the Treaty. It was agreed that the Commission will undertake further analysis for the next meeting.
The Euro 11 meeting also discussed preparations for the G7 meeting on 20 February 1998 in the context of the arrangements for the external representation of the euro as agreed at the Vienna European Council. The meeting was not invited to adopt any agreed positions for the purpose of the G7 meeting.
The Euro 11 meeting also discussed procedural arrangements for the IMF's surveillance of the monetary and exchange rate policies of the euro area under Article IV of the fund's Articles of Agreement.
The agenda for the meeting of Economic and Finance Ministers (ECOFIN) held on the same day, consisted of the following issues:
1. Agenda 2000
ECOFIN considered the progress of Agenda 2000 negotiations, focusing on stabilisation of expenditure and the own resources financing system. The discussion on stabilisation focused on agricultural and structural funds expenditure. I emphasised the need to provide sufficient resources for the orderly development of the Union's policies. I underlined our view that the
Commission's Agenda 2000 proposals are the correct basis for discussion, and in relation to Structural Funds, pointed out the importance of appropriate transitional arrangements for Ireland.
The discussion on the own resources financing system focused on perceived imbalances in relation to net contributions, and alternative means of addressing this issue.
2. Implementation of the Stability and Growth Pact
Stability Programme of Italy (1999-2001) – Opinion of the Council
The Council examined Italy's stability programme. The Council considered that the strategy of budgetary consolidation presented in the programme goes in the right direction and is satisfied that the Italian Government intends to strengthen the progress achieved in public finances in recent years. The Council encouraged the Italian Government to pursue the reduction of the public deficit with determination, although there are risks that the target of 2 per cent of GDP for 1999 could be missed due to lower-than-projected growth rates. The Council noted that Italy intends to meet the GDP/debt ratio requirements fully by 2002. The Council opinion was adopted.
Stability Programme of Portugal (1999-2002) – Opinion of the Council
The Council examined Portugal's stability programme and noted that the programme builds upon the budgetary consolidation achieved in the run-up to EMU and commanded the achievement of better than targeted budgetary outcomes. The macroeconomic projections seem plausible, although it was noted that there could be risks associated with the international economic situation on the one hand, and the risk of inflation due to expansionary effects on the domestic economy. Any inflationary pressures should be resolutely addressed. The Council supported the Portuguese Government's emphasis on the role of investment, particularly for a catching-up country. The Council opinion was adopted.
Convergence Programme of Sweden (1998-2001): Opinion of the Council
The Council next examined the convergence programme for Sweden. The macroeconomic projections were considered to be realistic and noted the recent success in budgetary consolidation. The Council noted that qualification for EMU will require that Sweden demonstrate its ability to stay in line with an appropriate parity between the krona and the Euro over a sufficient period of time. The Council expects Sweden to join the ERM2 in due course. The Council opinion was adopted.
Convergence Programme of the UK (1997-8-2003-4): Opinion of the Council
The final programme to be examined was the convergence programme of the UK. The Council noted with approval that the public finances are projected to be close to balance over the programme period and acknowledged that the growth scenario appeared realistic. The Council recommended that the UK continue the policy framework with a view to securing exchange rate stability which should help reinforce a stable economic environment. The Council opinion was adopted.
3. Economic Situation and Economic Policies of Community and Member States: Orientation debate on macro-economic issues, including economic reform report
The Council held its first orientation debate on the policy issues to be dealt with in the broad economic policy guidelines. Draft recommendations on these guidelines are to be presented in early May. The Council invited the Commission to take note of views expressed by Ministers. The Council also noted the presentation by Commissioner Monti of the Cardiff I report by the Commission on The Functioning of the Product and Capital Markets. This report has been produced in line with the Cardiff council conclusions. It is being examined by the economic policy committee and, along with national reform reports and work being carried out in the economic policy committee will form the basis for a Cardiff II report to be presented to Council in March.
Ministers discussed the following items over lunch:
Financial Services: Building a frame work for action
Over lunch, the Council noted a letter from Commissioner Monti advocating urgent agreement on a number of key proposals in the financial services sector. The Council agreed that urgent agreement on the proposals is important in order to complete the internal market in the financial sector, and indicated that they would try to reach rapid adoption of the necessary measures. Certain member states indicated that there were a number of problems associated with some of the Commission's proposals.
Euro 11 Debriefing
A debriefing session on what happened at the Euro 11 meeting was held.