Brussels, 12/07/2002 (Agence Europe) - At the ECOFIN Council that began in Brussels on Friday, the EU's economy and finance ministers supported the five priorities unveiled by the Danish finance minister Thor Pedersen for his chairmanship of the ECOFIN/Budget Council. Denmark will focus on:
Taxation. Tax cooperation. "It is an important priority for the Danish EU Presidency that the Member States should implement the conclusions reached by the Feira European Council and fully adopt the tax package before the end of 2002", explained the Presidency, noting that the directive on the taxation of private savings income is to be based on the exchange of information, and the EU must manage to strike agreements with third countries, particularly Switzerland, the US, the Channel Islands and the associated Dutch territories based on sufficient reassurances that appropriate measures would be applied in these countries. Luxembourg has set the precondition of an agreement being signed on the exchange of information for its support for the tax package. Company taxation code of conduct. The Council will conclude negotiations over an agreement on legislative and administrative measures to scrap damaging taxation and measures to potentially extend the measures after the end of the transition period in 2005. Energy tax. Denmark will try to respect the Barcelona and Seville Council conclusions that foresaw agreement on the energy tax directive before the end of the year, in line with an agreement on opening up the energy markets. Pensions. The Council will asses a report on coordinating different retirement schemes. Cooperation between tax administrations. The Presidency hopes a decision will be endorsed on the Physicals 2007 programme (cooperation between tax authorities) before the end of the year. VAT. The Presidency hopes to make progress on the regulation aiming to improve cooperation between VAT authorities so it can be adopted by April 2003. It is planing to publish a joint report with the Commission on progress over VAT deductions for leased car sales.
Financial services. In the framework of the commitments made in Barcelona based on the Financial Services Action Plan (foreseeing the integration of financial services markets by 2005 and securities markets by 2003), the Presidency will try to reach agreement over "abuse of the market", financial information supplied by companies quoted on the stock exchange, the supervision of financial conglomerates and pension funds. Agreements have already been reached over collateral and international accounting standards. The Presidency also hopes to start work on the directives on information to be supplied when issuing securities and investment securities (due to be unveiled by the Commission in the autumn).
The Presidency is expected to give details of an agreement over setting up an inter-institutional committee on securities in order to follow up on the EP/Council/Commission agreement over the Lamfalussy Method. The Presidency hopes progress will be made over mechanisms to speed up the legislative process and improve coordination of financial surveillance (see Europe of 12 July, p.10). After the series of financial scandals (Enron etc) the Presidency will be continuing with work to improve the quality of company governance. A high level group on company law will be publishing a report in the autumn.
Coordination of economic policies. The Presidency will prioritise stronger and more effective implementation of the conclusions from the Barcelona European Council on coordinating economic policies, ensuring the focus is laid on implementation by the Member States. It will also be following up conclusions on ensuring synchronisation in the adoption of Broad Economic Policy Guidelines and the annual employment package.
Enlargement. The Presidency would like to extend dialogue with candidate countries ver tax policy and administrative expertise. The ECOFIN Council will hold a meeting with the finance and economy ministers of the candidate countries in November to discuss the pre-accession economic programmes. Net contributing countries to the EU budget intervened to remind the Presidency the speed up debate over the funding of enlargement. Thor Pedersen said that decisions would be taken at the Brussels European Council in October. Meanwhile, the ECOFIN Council might provide technical expertise.
Budget. In line with the conclusions of the Seville Summit, the budget is being dealt with by the ECOFIN Council. The Presidency hopes to reach agreement between Parliament and Council in November, explaining it was vital that the agreement set the financial bases for achieving the EU's objectives within the limits of the Financial Perspectives and according to realistic budget principles for both commitments and payments, adding that one of the priorities for 2003 would be adapting the institutions for enlargement while keeping administrative expenditure within the limits set in Berlin. The Presidency noted that it would also be necessary to ensure sufficient margins for meeting the EU's external commitments.