Brussels, 22/01/2002 (Agence Europe) - The European Economy and Finance Ministers, who met on Tuesday in Brussels at the Ecofin Council, adopted during lunch a declaration on the crisis in Argentina and mainly discussed the creation of a bank for financing projects in the countries of the Mediterranean region. They also discussed continuation of the procedure on the Lamfalussy report.
In the declaration on Argentina, the ministers insist on the support that they will give to all measures likely to create conditions for resumed economic growth and a return to social peace in Argentina. In order to achieve this aim, the Argentinean government and parliament are called upon to take measures to determine an overall economic programme that is "stable, viable and credible" in order to regain the confidence of national and international investors. Furthermore, they call on the Argentinean government not to take administrative measures that could be detrimental to the financial sector. The Fifteen also proposed offering technical assistance to the Argentinean authorities in order to find and implement monetary, financial or exchange rate policies.
Ministers agreed to ask the Economic and Financial Committee (EFC) to determine the best way for the EU to increase the effectiveness of its development policy in the Mediterranean. Such ways include: (1) the creation of a new financial institution (Ed.: which poses a major political problem since the EIB finances many projects in the region); (2) use of the current EIB structure so that the Fifteen may finance projects; - and the creation of a "Euro-Med" subsidiary of the EIB open to third countries also. Most ministers insisted on the fact that it was preferable, in this connection, to give the European Investment Bank (EIB) a leading role, said Ecofin Council President Rodrigo Rato. We would recall that this subject, which took on a particular note of interest in the context of the attacks on the United States on 11 September, is one of the priorities of the Spanish Presidency, but that it poses a certain number of problems especially regarding the definition of the geographical field to be approved. "At any rate", added Mr Rato, "a political message has been launched: it is that Europe has a legitimate and marked interest in the development of this region thanks to strengthening of the competitive and powerful private sectors in the Mediterranean rim countries, the private sector being the cement for economic cohesion and a major political element".
Still during lunch, Commissioner Frits Bolkenstein briefed ministers on the current situation on the European securities market (Lamfalussy report). "We hope to resolve this issue with the Parliament during the first half of February" (see other article, p.13). Furthermore, commenting on the Presidency's work programme, he said that the Commission welcomed the fact that the Presidency is "determined to keep up impetus for implementation of the action plan relating to venture capital and financial services". He also welcomed the determination shown to adopt, by June, directives on market abuse and international accounting standards, and to find a political agreement on the subject of proposals on complementary pension funds, information notices and financial conglomerates. Finally, Mr Bolkestein took stock of the state of negotiations being conducted by the Commission with third countries on the subject of savings tax. Except for a meeting with Saint Marin, negotiations have not really moved forward since the month of December.