Brussels, 25/01/2007 (Agence Europe) - Closing the excessive debt procedure against France will be the main subject, and only decision, to be taken at the first Ecofin Council under the German presidency. EU27 Finance ministers will be meeting up next Tuesday with a lighter agenda, focusing on Spring Summit preparations. Eurogroup will meet up the day before to discuss the economic situation and budgetary developments in thirteen of the member states of the Euro-zone. It is also likely for them to discuss exchange rates, in view of the G7 finance meeting on 9-10 February.
Stability and Growth Pact (SGP). Unless there any surprises, the Council will follow the recommendation adopted last November by the Commission and decide to end (on the basis of Article 104§12 of the treaty) the excessive deficit procedure begun in 2003 against Paris (EUROPE 9317). Joaquin Almunia was pleased with the healthy budgetary situation in France but, nevertheless, stressed the need to carry out medium term objectives. In its most recent economic forecasts, the Commission estimated that the French deficit had gone to below 3% and was sustainable. With rates of 2.9% for 2005 and 2.7% in 2006, it is expecting a rate of 2.6% in 2007 and 2.2% in 2008. Germany is also expected to be removed from the procedure, probably before the end of its own presidency. Greece could be in the same situation if some of the results for 2006 and the next forecasts for 2007 confirm current trends and if an upward rise in previous GDP figures does not involve additional contributions to the EU budget, which would be likely to cause a new deficit in the country. According to the autumn forecasts, which take into account the revised figures Athens sent out at the beginning of October 2006 (which are still being analysed by Eurostat), the Commission is counting on a deficit of 2.6% for last year and this year (EUROPE 9300).
The presentation of the presidency's work programme by the German minister, Peer Steinbrück, will be followed by an orientation debate on the preparation of the European Council on 8-9 March (a document that takes up the Ecofin's “key issues paper” will be finalised on 27 February). On Tuesday, ministers will initially examine Commission progress reports on implementation of the Lisbon Strategy by member states in favour of growth and employment, particularly the formal recommendations by each country (EUROPE 9327). In Mid-December's presentation of the annual Commission report, its president, José Manuel Barroso, assessed implementation progress of the National Actions Plans (NAP). He also called on member states to spare no efforts in this respect. Ministers will then discuss the 2007 update of the Broad Economic Policy Guidelines (BEPG) for 2005-08. Finally, they will debate the reduction of corporate administrative charges. On Wednesday the Commission adopted its action programme to reduce administrative constraints on enterprise by 25% by 2012, particularly with regard to obligations for information in the thirteen priority areas (EUROPE 9351). The Council will also examine the methodology used for calculating administrative costs.
The EU27 will again examine the Commission and European Central Bank's (ECB) convergence reports adopted at the beginning of December (EUROPE 9321). This last assessment focused on respect for the Maastricht criteria by countries benefiting from a temporary derogations (Czech Republic, Estonia, Cyprus, Latvia, Hungary, Malta, Poland, Slovakia and Sweden), with the exception of Slovenia and Lithuania, whose cases were examined last May as they requested. The Commission will also be examining the introduction of the Euro in Slovenia last January. (ab)