Brussels, 11/02/2004 (Agence Europe) - As well as the points linked to the Stability and Growth Pact, the directive on savings tax and VAT (EUROPE yesterday pp 9-12), the Ecofin Council meeting on Tuesday in Brussels, dealt mainly with the issue of accomplishing the Lisbon process in view of the European Summit of 25-26 March, in which the Council is taking part. After listening to the Commission present them with its spring report and report on the implementation of the Broad Economic Policy Guidelines (BEPG) 2003-05, ministers proceeded to an exchange of views for determining the terrain for establishing the "Key issues Paper" to be adopted on 9 March before it is submitted to Heads of State and governments. In the follow-up, the Council also examined two related cases: the Stresa follow-up and regulation reform.
Lisbon process reform. After listening to the Commission and European Investment Bank present an exposé on its support activities to the Lisbon process and the European initiative for growth, ministers agreed that they needed to focus on the implementation of the objectives for research, innovation, training and education instead of defining any "new targets". They also noted the significance of the "prudent" assessment of the impact of regulation on economic performance, sharing the Commission's opinion that economic recovery and enlargement would present an exceptional opportunity for attaining the Lisbon process objectives. The Council approved a report on structural reform prepared by the economic policy committee and agreed to submit it to the European Council in March. It also adopted conclusions on the Commission's report on the implementation of the BEPG 2003-05. Irish finance minister Charlie McCreevy, who chaired the meeting, underlined that, "The key message f those conclusions is that too little has been achieved in the first year, but that there is still time to catch up in the second and third year, provided that reforms are stepped up".
Stresa follow-up. Following the discussion of the informal Ecofin meeting in Stresa in September 2003, the Council again discussed work methods and certain problems the Union would be confronting over the next few years. In this connection McCreevy stressed that "a key challenge is making faster progress on the Lisbon employment targets, which involves dealing with such issues as measures to increase labour force participation rates, benefit reforms and the economic effects of excessive regulation".
Regulatory reform. The European Commission's recent review of the European economy pointed our that regulatory reform is a key element in seeking to achieve the goals of the Lisbon strategy. The four presidencies (Ireland, Netherlands, Luxembourg and UK) propose that a range of measures and actions will be undertaken over the next two years. These proposals were set out in a joint letter from the four finance ministers to their fellow Ecofin ministers, circulated 26 January. As a follow up to this initiative, the Council agreed to hold a breakfast meeting in March, in advance of the main Ecofin meeting, on the issue of reducing the "regulatory burden".