Brussels, 09/02/2001 (Agence Europe) - Next Monday's Economic and Finance Council, Presided over by the Swedish Minister Bosse Rongholm, will open with a new attempt to reach a political agreement over the tax exemptions given to oil products. The Ministers will then broach the preparation of the Stockholm Summit and examine the proposals from the Commission to send a recommendation to Ireland, for it to adopt a less expansionist budget. During the lunch the Ministers will be informed by Didier Reynders of the results of the meeting by the Eurogroup, Philippe Maystadt, EIB President, will for his part draw an assessment of the bank's activities in 2000 (see yesterday's EUROPE, p.9). Below is an overview of the works:
Taxation. The Ministers will seek a political agreement on the renewal of the derogations to the Directive on the harmonisation of structures governing excise duties on mineral oils (see EUROPE of 20 January, p.7). Germany and Austria where opposed to the calls for exoneration from France, Italy and the Netherlands on diesel used by road hauliers and the Swedish Presidency will present a compromise consisting of reducing all the derogations enforced to six year, with the exemption of those proposed for the road hauliers, which should last two years non-renewable (France, Italy and the Netherlands). The compromise foresees among others that the benefits conceded to hauliers in 2001 downward development the next year, while a declaration annexed to the agreement foresees that the Commission renounces any new proposal for the extension of the derogations for the road hauliers. The acceptance of this compromise, favourably welcomed by most of the delegations, mainly depends upon the negotiations underway between France and Germany. Only one Member States, Ireland, is hostile to a time limit of six years, due to the near permanent nature of some derogations from which it benefits. In the absence of an agreement, Commissioner Fritz Bolkestein announced that the Commission could decide as of Tuesday to initiate infringement proceedings against the countries which have anticipated the enforcement of these derogations.
Preparation of Stockholm summit. The Council will get to know the report by Frits Bolkestein on the functioning of the good and capital markets (Cardiff report). The Ministers will also have a policy debate on the preparation of the "key issues" concerning the adoption procedure for the 2001 Broad Economic Policy Guidelines, on the basis of Commission and Presidency documents. The latter passed on to the Member States a text with five points, which it considers as priorities for 2001: 1) the current themes; 2) structural reforms; 3) impact of ageing population; 4) transition towards knowledge society; 5) market integration.
EMU. A political agreement is expected on a draft regulation to fight against money counterfeiting, which should enter into force on 1 January 2002. The Council should also adopt conclusions on information material and coin sample aimed at people suffering from intellectual and sensory deficiencies, as well on the providing of samples for companies concerned.
BSE crisis. The Ecofin Council must give the go ahead to the additional budget of EUR 971 million (see EUROPE of 9 February, p.6) proposed by the European Commission in its supplementary and amending budget, to cover the cost of BSE. Moreover it will have a debate with the Commissioner for the Budget, Michaele Schreyer on the long-term financial consequences of the crisis.
Financial services. Commissioner Bolkestein will present the Communication adopted on Thursday by the Commission on electronic commerce and financial services (see EUROPE of 7 February). The Ministers will try to agree on a proposal for the simplification of the rules governing the undertaking for collective investment in transferable securities (UCITS). The main issue which presents itself is to know what stockholders equity must be required from these bodies.
Stability and growth pact. The Council will examine the convergence and stability programmes for France, Italy, Greece, Austria and Ireland, as well as the convergence programmes for the United Kingdom and Denmark, and should in particular take a position on the draft recommendation from the Commission targeting the inconsistencies of the expansionist aspects of the Irish budget compared to the Broad Economic Policy Guidelines (Article 99.4 of the Treaty). In case of the adoption of the recommendation by the Council (through qualified majority), the Ministers will have to decide if the recommendation will be made public. The criteria formulated by the Commission cover the lack of respect for the Broad Economic Policy Guidelines, and not the Stability and Growth Pact itself.