Brussels, 10/03/2000 (Agence Europe) - As tradition would have it, the Ecofin Council on Monday 13 March will be preceded from 9.00 to 11.00 a.m. by a meeting of the Euro Group, during which the Finance Ministers of the eleven euro-area Member States will once again review the present economic, monetary and financial situation, along with the future outlook. They could also try to agree on how to use additional budget margins resulting from higher tax revenues. Commissioner Pedro Solbes will brief Ministers on the report being prepared on the quality of public finances. The Austrian Finance Minister may also brief fellow Ministers on the guidelines Mr Schüssel's government will follow in drafting the Austrian budget for 2000.
The Ecofin Council per se will have a relatively limited agenda. Following is an overview.
- 1998 budget: discharge. The Council will adopt, no doubt by qualified majority, its recommendation to the EP on the discharge to be given to the European Commission, in the light of problems identified by the Court of Auditors in its annual report and in four special reports on certain agricultural sectors. Presenting these documents to the Ecofin Council of 29 November last, Court of Auditors President Karlsson insisted on the necessity of the Commission reviewing its internal monitoring systems, though primary responsibility for proper execution of the budget is nonetheless incumbent upon the Member States. Prepared on this basis by the Budgetary Committee, the Council recommendation will be matched with comments in which Ministers will reiterate the importance they attach to fighting fraud, corruption and breakdowns and ask Member States to ratify at the earliest opportunity the Convention on the Protection of the Community's Financial Interests. They will also encourage the Commission to pursue its efforts to consolidate financial management (SEM 2000), stressing the necessity of developing greater administrative cooperation with Member States. EUROPE would recall that the number of budgetary errors detected by the Court of Auditors in execution of the 1998 budget led the Court not to release its declaration of assurance on the validity of the accounts. In this connection, Commissioner Schreyer will present to the Council the action plan for improvement of financial management and procedures, developed by the Commission to prevent a repeat of this situation.
- Implementation of the Stability and Growth Pact. On the basis of the recommendations published this week by the Commission (see EUROPE of 9 March, pp. 7-8) and the oral presentation on these recommendations by Pedro Solbes, the Council will asses -in restricted session and in the light of an evaluation by the Economic and Financial Committee- the revised stability programmes of France, Luxembourg and Portugal. It will doubtless concur for the most part with the Commission's appraisal.
- Lisbon European Council. President Prodi will participate in the Council's deliberations on preparation of the special summit, during which Ministers will adopt two papers as specific contributions by the Ecofin Council: a) a text prepared by the Economic and Financial Committee on improvement of financial markets in general, containing different specific proposals: better access to investment capital, better operation and integration of Euro-bond markets, development of the venture capital market to stimulate innovation, SMEs, economic growth and job creation, the sustainability of public finance especially through lower taxation on wages, etc.; b) the Economic Policy Committee's second annual report on structural reform, meant inter alia to nurture the upcoming broad guidelines for economic policies. Some delegations may take advantage of the opportunity to raise the question of the possible participation of the Finance Ministers in the summit, a question being addressed in Portuguese Prime Minister Antonio Guterres' visits to the different capitals, due to conclude this week. EUROPE would point out that the presence of the Finance Ministers at summits is foreseen by the Treaty when monetary issues are discussed (which is not the case this time). Some capitals are of the view that their presence would also imply that of the Labour and Social Affairs Ministers.
- Taxation. The only item for this sitting is the question of the possible taxation of jet fuel (see other article).
Under the "miscellaneous" item on the agenda (which cannot involve formal decisions), Ministers will discuss the following:
- Sweden will confirm its request for extension of its authorisation for quantitative restrictions on imports of tobacco and alcohol.
This derogation to the common Community regime (negotiated during the accession) will end next 30 June; Stockholm calls for it to be aligned with the derogation made to Denmark and Finland that is valid until 31 December 2003. The Swedish authorities emphasis the need to align the regimes granted to neighbouring countries as well as reasons of public health. The European Commission is not swung by the demand; - The financing of the Stability Pact for South Eastern Europe. The Council will hear Mr. Hombach (already briefly heard during the session on the 28 February) on the financial implications of the reconstruction of the Balkans, especially with the prospect of the donors Conference on the 29/30 March.
During the breakfast, the following themes will be broached, other than the usual debriefing on the "Euro Group"; - financial assistance to Montenegro. During the February session, the Ministers confirmed to impossibility of granting macro-financial aid to someone who is not part of the FRY. The commission should therefore indicate through which instruments - mainly humanitarian aid, as in 1999 - it could consider continuing the assistance to the country this year; - Director General of the IMF. The consultations aiming to reach a consensus in the nomination of a new EU candidate (the German Horst Kohler, President of the Berd) was called to continue this weekend. The ministers will deal with the case only if there is an absence of agreement, which already seems to be the case. The United States has reasserted the requirement that this post be filled by a high ranking political figure, which in their opinion is not the case with the previous German candidates. Certain Member States more or less share this requirement. The name of the Italian Amato is cited as an ideal compromise candidate (though he is not a German…)
