Brussels, 04/01/2007 (Agence Europe) - Over the next eighteen months, Germany, followed by Portugal and Slovenia, will drive forward the work of the Ecofin Council to enhance coordination of economic policies, on one hand, and to improve the quality of public finance, on the other, as well as to complete the internal market, especially with regard to financial services and taxation (see EUROPE 9336). Five Ecofin Council meetings, to be held under the chairmanship of German Finance Minister Peer Steinbrück, are scheduled during the first half of 2007. The day before each Ecofin Council, there will be a meeting of the Eurogroup, attended by the finance ministers of the thirteen eurozone countries and chaired by Luxembourg's Prime Minister Jean-Claude Juncker. An informal meeting of the EU27 ministers will be held in Berlin on 20 and 21 April.
During the first meetings, the Presidency will set out details of a number of Ecofin priorities in a document for the Spring European Council, to be held on 8 and 9 March this year. It stresses that public spending promoting productivity and innovation would not only improve the quality of public finance but would also improve employment and growth prospects. This should also be taken into account at European level, mainly during revision of the Community budget scheduled for 2009, the Presidency points out. It intends, moreover, to give details of the progress made at technical level with a view to a Common Consolidated Corporate Tax Base (CCCTB). Other points mentioned in the document are: - implementation and completion of the financial services action plan, better regulation initiatives and improvement of framework conditions for innovation and entrepreneurship (private sector investment in R&D, transfer of knowledge between universities, public research institutes and industry).
Some Member States may also ask to join the European Exchange Rate Mechanism II (ERM II). They are required to belong to the mechanism for at least two years before they can request membership to the eurozone (in addition to convergence criteria being met). With a view to joining the eurozone in 2010, Hungary and the Czech Republic may thus decide to link their national currencies to the euro, by defining a pivotal rate around which their currencies may fluctuate by 15% more or less. Having belonged to ERM II for over two years, Cyprus and Malta are expected to rapidly call on the European Commission and the European Central Bank (ECB) for a specific assessment to be made of their conformity to the convergence criteria, if they wish to join the euro area on 1 January 2008. If the assessment is positive (by April), ministers may decide by the end of the first half of 2007 (possibly in June) to repeal the derogation granted provisionally at the time of their accession.
In addition to these specific subjects and implementation of the Stability and Growth Pact (SGP), which will result in repeal of the excessive deficit procedure against France end January, and later that against Germany (EUROPE 9317), the main themes on the Ecofin agenda under German Presidency are for now:
On 30 January in Brussels: Presentation of the work programme followed by a policy debate on preparation of the European Council in March. The priorities set out in the document forwarded to the Heads of State and Government to be discussed this time will cover the Commission's progress reports on the Lisbon Strategy, the specific country-by-country recommendations in the framework of the Broad Economic Policy Guidelines (BEPG) for 2005-2008, and reduction of the administrative burden. The Commission and the ECB will then present their convergence reports on the progress made by Member States towards adopting single currency (EUROPE 9321). The ECB will also inform ministers of its Target 2 - Securities project which aims to create a pan-European platform for delivery versus payment for transactions in euro securities. Finally, the Commission will report on adoption of the euro by Slovenia.
On 27 February in Brussels: Ministers will examine a first series of stability or convergence programmes in the context of multilateral budgetary surveillance. The Ecofin Council will adopt the document on its priorities with a view to the summit in March. It will finalise the updated BEPG project and the country-by-country recommendations in the context of discharge procedure for implementation of the 2005 Budget. The Commission will take stock of the follow-up and functioning of the delivery versus payment code of conduct and ministers will possibly attempt to reach a general approach concerning the directive on the Single Euro Payments Area (SEPA).
On 27 March in Brussels: the Council will examine the stability and convergence reports for a second series of Member States, before adopting recommendations on the updating of BEPG 2005-08, as well as the conclusions on Council priorities for the 2008 Community budget. Ministers will attempt to reach a political agreement on the directive on precautionary assessments for mergers and acquisitions by amending directives 92/49/EEC, 2002/83/EC, 2004/39/EC and 2006/48/EC. In the area of taxation, the Council will adopt conclusion on Commission communications on direct taxation (EUROPE 9331) and on the idea for an EU joint transfer pricing forum. It might also be debating the fight against tax fraud.
8 May in Brussels: the European Commission will be presenting its preliminary draft budget for 2008, before ministers begin the debate on the Lamfalussy approach and “better regulation” and possibly adopt conclusions on these two subjects. Other conclusions are, however, expected on the Commission's White Paper on asset management (EUROPE 9308), hedge funds and the communication on the deposit guarantee system.
On 5 June in Luxembourg: as well as conclusions on the quality of public finances, and possibly statistics, this final meeting under the German Presidency will in particular provide the occasion for examining progress achieved in various tax dossiers. Conclusions on the fight against tax fraud and a progress report on the VAT package are also expected in June 2007 when results from an external study on the application of reduced VAT rates and its impact in the internal market will also be revealed. During the final Ecofin meeting, opinions diverged on how best to fight tax evasion. Germany says that adoption of the VAT package will depend on how the reverse charge mechanism on its territory will be applied (EUROPE 9316). An initial debate is also proposed for the common consolidated corporate tax band, as well as conclusions on the corporate taxation code of conduct. An orientation debate will also take place on possible reform of excise rates for commercial diesel about which the Commission recently published results from a consultation (EUROPE 9333). (ab)