Dáil Éireann díospóireacht -
Tuesday, 30 Sep 2003

Vol. 571 No. 1

Written Answers. - Official Engagements.

Kathleen Lynch

Ceist:

182 Ms Lynch asked the Minister for Finance the matters discussed and conclusions reached at the meeting of EU Finance Ministers in Stresa, Italy; the status of the EU Commission proposal to impose VAT on shoes; and if he will make a statement on the matter. [20755/03]

Minister for Finance (Mr. McCreevy)

An informal meeting of the ECOFIN Council took place on 13 September in Stresa, Italy. Informal meetings of the Council provide Ministers and central bank governors with an opportunity to engage in a general discussion, in a relaxed atmosphere, on issues which will feature on the agendas of future formal Councils. As such, it is not the practice for such meetings to agree formal conclusions. Ministers were glad to have their colleagues from the accession countries present at their discussions.

The Ministers had a broad exchange of views on recent world economic developments. Ministers agreed on the position of the EU Presidency for the annual meetings of the International Monetary Fund and the World Bank. Development issues, including the highly indebted poor countries initiative and the international finance facility, along with policy issues relating to IMF surveillance, also featured.

The Presidency proposal on a European action plan for growth was discussed.

Ministers exchanged views on economic and financial aspects of the draft EU constitution drawn up by the Convention on the Future of Europe and to be considered by the forthcoming Intergovernmental Conference. As well as having a general discussion of financial conditions in the EU, the Ministers carried out their normal annual review of the implementation of the recommendations made in the Brouwer reports on financial stability and on financial crisis management.

The Commission proposal for a Council Directive amending Directive 77/388/EEC as regards reduced rates of VAT was discussed and will be the subject of an orientation debate at the next ECOFIN meeting on 7 October. Ireland has strongly opposed various changes in the Commission proposal including the change which would impose VAT on children's clothes and shoes, and will continue with its strong opposition in the further discussion on the directive.