Brussels, 09/04/2002 (Agence Europe) - The EU Economy and Finance Ministers are to meet on Friday 12 and Saturday 13 April in Oviedo for an informal Ecofin Council, under the chairmanship of Spanish Minister Rodrigo Rato. The fifteen EU Finance Ministers, the president of the European Central Bank, Wim Duisenberg, and Commissioner Pedro Solbes will meet at 16h30 in the "enlarged Eurogroup". They will assess the economic situation and prepare the speech to be delivered by the Council presidency on behalf of the Eurogroup during the next G7 meeting (Kananaskis, Canada, 26 and 27 June).
On Saturday morning, the ministers, governors of Central Banks, the Commissioner and the ECB President will take stock of the spring economic forecasts and international issues. They are mainly expected to specify the content of the intervention by the Council Presidency during the meeting of the International Monetary Fund's Monetary Committee, fine-tune the European stance on the role of the IMF in restructuring the external debt, and return to the theme of the EU's representation at the G7 and IMF.
Ministers will then hold a debate on the implications of the Enron affair on corporate governance in Europe, on the basis of a note from the European Commission. During this first discussion among the Fifteen on this subject, recommended by France, the ministers will give their diagnosis of what has happened and will assess the instruments that could be developed at European level with regard to audit matters, accounting standards, and the regulation of financial markets. Andrew Cockett, President of the Forum on Financial Stability (IMF dependent) and Director General of the International Settlements Bank, was invited to take part in the discussion. Commissioner Frits Bolkestein confirmed that he plans to present, in the near future, recommendations concerning auditor services (see EUROPE of 3 April, p.9) and the High Level Group in company law should present a report this summer on the creation of a "modern framework for corporate law". To this end, a comparative study on corporate governance was recently published by the Commission (see EUROPE of 3 April, p.10). Ministers are also to speak of the possibility of creating a group of the wise, an idea put forward at the Barcelona Summit.
During lunch, Ministers are expected to come to an agreement over who should succeed Christian Noyer, of French nationality, as Vice-President of the European Central Bank. They are to adopt a recommendation that would then be approved by written procedure by a formal Council, and forwarded for opinion to the European Parliament and Central Bank. The Member State representatives at the level of the Heads of State and Government should ultimately approve the nomination. The procedure should in principle come to a close before 31 May, the date when Mr Noyer leaves his post. The two candidates for the post are Belgian national Paul de Grauwe, Flemish Liberal and Chair of the Finance Committee of the Belgian Senate and academic; and the governor of the Greek central bank, Lucas Papademos. Given the latest rumours going round about the opinions allegedly expressed by Paul de Grauwe in academic work against the Stability Pact, Lucas Papademos is for now the favourite.
During Saturday afternoon, the Council will take stock of negotiations under way at the Basel Committee for revision of international rules on capital adequacy required by financial institutions for granting loans. In the presence of the governors of the European Central Banks, the ministers should speak of their concern about SME access to funding in the context of the future "Basel II Convention". The Spanish Presidency developed a note on this subject. The Council will examine the second report of the Brouwer group on the stability of the financial sector (Brouwer II Report) and the implementation of the group's recommendations.
Furthermore, the Council will speak of the request made by France, the Netherlands and Italy, to benefit from exemption to European rules on excise for diesel fuel regarding aid granted by them in 2000 for hauliers in the context of the oil crisis. While the Commission was ready to condemn such tax exemptions, the three States concerned called early February for the application of Article 88.2 of the Treaty allowing the Council to decide unanimously that State aid is compatible with the common market (see EUROPE of 6 February, p.10). The request placed de facto suspension on the Commission decision. The Council has three months in which to give its stance, and France, Italy and the Netherlands hope the informal Oviedo Council will set their request in the right direction, to be formally endorsed by written procedure. If the Council does not reach a decision, the procedure begun by the Commission will be resumed.
Finally, Commissioner Bolkestein should take stock of negotiations under way with third countries (Switzerland, United States, Liechtenstein, Andorra, San Marino, Monaco) so that they implement measures "equivalent" to those to be adopted at the end of the year by the EU regarding savings income taxation. "The aim is to put pressure on the Commission, since a decision must be adopted at the end of the year", one diplomat remarked.
Sunday 14 April. The morning will be devoted to an academic seminar on the "international role of the euro", the "private use of the euro" and the official use of the euro as an anchoring and intervention currency. Conclusions will be drawn by the governor of the Central Bank of Spain.