Brussels, 30/01/2007 (Agence Europe) - Preparation for the March European Council will only be finalised at the next Ecofin Council on 27 February, but the drafting of the document which will be sent to heads of state and government is continuing. At their meeting on Tuesday, EU finance ministers raised a number of issues which are part of the implementation of the Lisbon Strategy. The Ecofin Council calls for periods of growth to be used to implement structural reform and continue with budget consolidation. Finance ministers also note that the implementation of national reform programmes had begun promisingly, but that efforts must continue to ensure the long-term success of the Economic and Monetary Union (EMU). The euro has brought low inflation and low long-term interest rates, but variations in growth and inflation persist, because of a lack of productivity and innovation in some states, says a provisional version of the Ecofin key issue paper, which also calls for balance between public spending and taxation. At this moment, the section on taxation stresses the need to make progress in the area of direct taxation, through coordination measures at European level. The Ecofin Council says it is willing to continue ongoing technical work on direct taxation. On Tuesday, some member states (the Czech Republic, Poland and the United Kingdom notably) reacted, insisting that the work on a common consolidated corporate tax base be only on a technical level at this point. From the point of view of cutting red tape, the Commission strategy presented last week (see EUROPE 9351) was received positively by ministers, Commissioner Almunia said. During their discussions, some argued for the right balance to be struck between the quantitative objective and the qualitative aspects of the task in hand. The target of a 25% reduction in the bureaucratic burden on companies extends, too, to the burden resulting from Community legislation. The target is a general one and can vary from one member state to another. To improve the integration of European financial markets, the Ecofin Council hopes above all to overcome the obstacles to the adoption of the directive on payment services, and to examine the issue of the transparency of hedge funds. On this last point, German Finance Minister Peer Steinbrück acknowledged in the press conference that “we are still at a very early stage”, calling for discussion on the possible systemic risks and on how to get greater transparency. Better convergence of monitoring practices and more effectiveness in EU crisis management tools are needed, the document says. (ab)