12.VII.2005
COUNCIL OFTHE EUROPEAN UNION / EN
C/05/181
Brussels, 12 July 2005
10879/05 (Presse 181)
PRESS RELEASE
2672nd Council Meeting
Economic and Financial Affairs
Brussels, 12 July 2005
President Mr Gordon Brown
Chancellor of the Exchequer
of the United Kingdom
10879/05 (Presse 181) 1
EN
Main Results of the CouncilThe Council agreed on the existence of an excessive government deficit in Italy and adopted an opinion on an updated stability programme submitted by Portugal.
It approved new measures aimed at preventing ship-source pollution, by introducing sanctions and strengthening the criminal law framework in this area, as well as strengthened provisions for combating euro counterfeiting and a system of cash controls in order to combat terrorist financing.
The Council also adopted economic policy guidelines and employment guidelines for the 20052008 period.
CONTENTS1
PARTICIPANTS 5
ITEMS DEBATED
PRESIDENCY WORK PROGRAMME 7
FINANCING OF DEVELOPMENT AID - MILLENNIUM DEVELOPMENT GOALS 8
ECONOMIC REGENERATION IN THE WEST BANK AND THE GAZA STRIP 9
EU BUDGET CONTROL FRAMEWORK 10
STABILITY AND GROWTH PACT 11
– Portugal: updated stability programme 11
– Italy: excessive deficit procedure 11
IN THE MARGINS OF THE COUNCIL 12
– Ministerial meeting with the accession and candidate countries 12
OTHER ITEMS APPROVED
ECONOMIC AND FINANCIAL AFFAIRS
Integrated guidelines for economic and employment policies 20052008 13
External auditors of national central banks - De Nederlandsche Bank 13
Income and living conditions in the EU 14
EXTERNAL RELATIONS
Africa - EU activities in support of human rights 14
Relations with Tunisia 14
DEVELOPMENT COOPERATION
Community external assistance 15
Financial contribution to the European Development Fund* 15
TRADE POLICY
Anti-dumping - Algeria - Urea ammonium nitrate 15
Anti-dumping - China and Vietnam -Bicycles 15
Ukraine - Steel products 15
INSTITUTIONAL AFFAIRS
Economic and Social Committee 15
JUSTICE AND HOME AFFAIRS
Protecting the euro against counterfeiting 15
Prevention of ship-source pollution - Strengthening of the criminal law framework* 15
TRANSPORT
Prevention of ship-source pollution and the introduction of sanctions for infringements 15
Road safety – Vehicle seats, anchorages and head restraints* 15
CUSTOMS UNION
Cash controls - Combating terrorist financing* 15
European Free Trade Association - Common transit procedure 15
ENERGY
Gas networks - Conditions of access for third parties* 15
SOCIAL POLICY
Gender equality programmes 15
TRANSPARENCY
Public access to documents 15
APPOINTMENTS
Committee of the Regions 15
Office for Harmonisation in the Internal Market 15
PARTICIPANTS
The Governments of the Member States and the European Commission were represented as follows:
Belgium:
Mr Didier REYNDERS Deputy Prime Minister and Minister for Finance
Czech Republic:
Mr Bohuslav SOBOTKA First Deputy Prime Minister and Minister for Finance
Denmark:
Mr Claus GRUBE Permanent Representative
Germany:
Mr Hans EICHEL Federal Minister for Finance
Estonia:
Mr Aivar SÕERD Minister for Finance
Greece:
Mr Georgios ALOGOSKOUFIS Minister for Economic Affairs and Finance
Spain:
Mr Pedro SOLBES MIRA Second Deputy Prime Minister and Minister for Economic Affairs and Finance
France:
Mr Pierre SELLAL Permanent Representative
Ireland:
Mr Brian COWEN Minister for Finance
Italy:
Mr Domenico SINISCALCO Minister for Economic Affairs and Finance
Cyprus:
Mr Iacovos KERAVNOS Minister for Finance
Latvia:
Mr Eduards STIPRAIS Permanent Representative
Lithuania:
Mr Zigmantas BALČYTIS Minister for Finance
Luxembourg:
Ms Martine SCHOMMER Permanent Representative
Hungary:
Mr János VERES Minister for finance
Malta:
Mr Lawrence GONZI Prime Minister and Minister for Finance
Netherlands:
Mr Thom DE BRUIJN Permanent Representative
Austria:
Mr Gregor WOSCHNAGG Permanent Representative
Poland:
Mr Miroslaw GRONICKI Minister for Finance
Portugal:
Mr Luís CAMPOS E CUNHA Minister for Finance
Slovenia:
Mr Andrej BAJUK Minister for Finance
Slovakia:
Mr Ivan MIKLOŠ Deputy Prime Minister and Minister for Finance
Finland:
Mr Antti KALLIOMÄKI Deputy Prime Minister, Minister for Finance
Sweden:
Mr Pär NUDER Minister for Finance
United Kingdom:
Mr Gordon BROWN Chancellor of the Exchequer
Mr Ivan LEWIS Economic Secretary to the Treasury
Commission:
Mr. Siim KALLAS Vice-President
Mr Joaquín ALMUNIA Member
Mr László KOVÁCS Member
The Governments of the acceding States were represented as follows:
Bulgaria:
Mr Milen VELCHEV Minister for Finance
Romania:
Mr Nicolae IVAN State Secretary, Ministry of Public Finance
Other participants:
Mr Pierre VAN DER HAEGEN Director of the European Central Bank
Mr Philippe MAYSTADT President of the European Investment Bank
Mr Caio KOCH-WESER Chairman of the Economic and Financial Committee
Mr Joe GRICE President of the Economic Policy Committee
ITEMS DEBATED
PRESIDENCY WORK PROGRAMME
The presidency presented a work programme for economic and financial affairs for the second half of 2005.
The work programme focuses on two key priorities:
· Building prosperous, dynamic European economies through: implementation of the revised economic reform agenda to deliver sustainable growth and high employment; further action on regulatory reform to boost European competitiveness; work in key sectors including a strategic approach to financial services;
· Addressing international challenges through: European action to lead the way on international poverty reduction and financing for development ahead of the UN summit in September; effective relationships with key international partners, including a strengthened transatlantic economic dialogue.
The presidency intends the fight against terrorism, in particular the issue of combating terrorist financing, to be discussed in detail at an informal meeting of finance ministers to be held in Manchester on 9 and 10 September.
It plans to continue discussions on the EU's 2007-13 budgetary framework, drawing on progress made to date and with a view to defining all the elements necessary for an overall agreement as soon as possible. It will first consult the member states on the way forward.
The work programme also mentions implementation of the stability and growth pact, the new EU sustainable development strategy as well as modernisation of the VAT system and work on VAT rates.
FINANCING OF DEVELOPMENT AID - MILLENNIUM DEVELOPMENT GOALS
The Council took stock of progress, following the G8 summit in Gleneagles (Scotland) on 6-8 July, on the financing of development cooperation under the millennium development goals set by the United Nations in 2000. It assessed the main issues involved with a view to presenting a coordinated European position to the UN General Assembly in New York on 14-16 September.
The Council requested the economic and financial committee to continue work on the dossier so as to enable ministers to discuss it further at an informal meeting to be held in Manchester on 9 and 10 September.
It is recalled that, at its "external relations" meeting on 23 and 24 May, the Council approved intermediate collective aid targets in accordance with commitments already made at international level (see press release 8817/05).
ECONOMIC REGENERATION IN THE WEST BANK AND THE GAZA STRIP
The Council discussed possible support from the EU for economic regeneration in the West Bank and the Gaza Strip.
It requested the Commission and the European Investment Bank to continue work and to report back to ministers at an informal meeting to be held in Manchester on 9 and 10 September.
EU BUDGET CONTROL FRAMEWORK
The Council adopted the following conclusions:
"The Council notes the Commission’s communication “on a roadmap to an integrated internal control framework”, which raised a number of important and detailed issues. It notes the intention of the presidency and the Commission to examine the communication, in full respect of the EC treaty, in a panel of experts from all member states. The Council invites the permanent representatives committee to examine the panel’s work with a view to preparing draft conclusions for consideration at the November Ecofin Council."
STABILITY AND GROWTH PACT
– Portugal: updated stability programme
The Council adopted an opinion on an updated stability programme presented by Portugal for the 20052009 period (11122/05).
The update stems from the need to correct a government deficit which, at 6.2% of Portuguese gross domestic product (GDP), is expected this year to be well in excess of the 3% reference value provided for by the EU treaty. This figure follows a deficit of 2.9% of GDP in 2002, 2003 and 2004, and is evidently worse than the target of 2.2% of GDP set for this year under the previous programme submitted by Portugal.
To reduce the deficit, the updated programme outlines a strategy involving structural measures rather than reliance on one-off and temporary measures. The deficit is thus expected to improve, but will continue to exceed the 3% reference value until at least 2007.
– Italy: excessive deficit procedure
The Council reached political agreement on a draft decision, under article 104(6) of the EU treaty, on the existence of an excessive government deficit in Italy and on a draft recommendation, under article 104(7), on action to be taken for its correction (11123/05 + 11124/05).
According to figures reported so far, Italy's deficit in 2003 and 2004 was above but close to 3% of gross domestic product (GDP), the maximum reference value provided for by the EU treaty. The excess cannot be qualified as exceptional in the terms of the EU's stability and growth pact; nor can it be considered temporary, because the Commission forecasts a deficit exceeding 3% of GDP by a significant margin in 2005 and 2006.
In accordance with the new rules of the stability and growth pact, and in the light of the current weakness of the Italian economy, the draft recommendation allows Italy six months (instead of four) to present corrective action, and two years (instead of one) to bring its excessive deficit to an end. It nevertheless calls for fiscal measures amounting to 1.6% of GDP over the two years.
The Council will adopt the Decision and recommendation by written procedure at the end of July, once Regulation 1056/2005, which implements the new rules on the excessive deficit procedure, has entered into force.
IN THE MARGINS OF THE COUNCIL
– Ministerial meeting with the accession and candidate countries
A ministerial dialogue was held with the accession and candidate countries, approving joint conclusions on all four countries (Bulgaria, Romania, Croatia and Turkey) as well as joint opinions on Bulgaria's and Romania's 2004 pre-accession economic programmes (10816/05).
*
* *
Over lunch, ministers were briefed on the results of the G8 summit in Gleneagles (Scotland) on 68July and of the Eurogroup meeting held on 11 July.
OTHER ITEMS APPROVED
ECONOMIC AND FINANCIAL AFFAIRS
Integrated guidelines for economic and employment policies 20052008
The Council, in accordance with a mandate given by the European Council in March[1], adopted a set of 24 integrated guidelines for growth and jobs, consisting of two elements: broad economic policy guidelines (10667/05) and employment guidelines (10205/05), for the three-year cycle 2005/2008.
The integrated guidelines for growth and jobs will serve as the basis for national reform programmes which are to be submitted by member states by autumn 2005. This integrated approach involves macro-economic, micro-economic as well as employment policies.
Reflecting the new start given to the Lisbon economic reform strategy, the broad economic policy guidelines concentrate on the contribution of economic policies to higher growth and more jobs. They deal with the influence that macro-economic policies can play in this respect, while focusing on the measures that the member states should carry out in order to boost knowledge and innovation for growth and to make Europe a more attractive place to invest and work.
The employment guidelines aim to achieve objectives of full employment, job quality, labour productivity and social cohesion, reflected in clear priorities: to attract and retain more people in employment, increase labour supply and modernise social protection systems; to improve adaptability of workers and enterprises; and to increase investment in human capital through better education and skills.
External auditors of national central banks - De Nederlandsche Bank
The Council adopted a decision approving the appointment of Josephus Andreas Nijhuis, registered accountant and chairman of the board of PricewaterhouseCoopers BV, acting in his personal capacity, as the external auditor of De Nederlandsche Bank from the financial year 2005 for an indeterminate period, this period being subject to confirmation each year (9669/05).
This decision amends decision 1999/70/EC concerning the external auditors of the national central banks.
Income and living conditions in the EU
The Council adopted a regulation concerning statistics on income and living conditions in the EU and amending regulation 1177/03 (PE-CONS 3624/05).
Regulation1177/2003 was adopted with the aim of establishing a common framework for the production of EU statistics on income and living conditions (EU-SILC), to become the reference source of comparative statistics.
Because the SILC project is a source for key socio-economic indicators and is to be used in combating poverty and social exclusion in the EU, it must meet quality standards, mainly a high response rate, a low error rate and full geographical coverage.
The new regulation introduces a derogation to allow all the new member states except Estonia to launch the SILC project in 2005; specifies that the EU financial contribution for Estonia will be for four years of data collection from 2005 and defines the minimum effective sample size for each of the ten new member states.
EXTERNAL RELATIONS
Africa - EU activities in support of human rights
The Council approved a report on activities undertaken under its common position 98/350/CFSP on human rights, democratic principles, the rule of law and good governance in Africa.
Relations with Tunisia
The Council approved a draft decision of the EU-Tunisia Association Council regarding the definition of the concept of "originating products" and methods of administrative cooperation laid down in the EU-Tunisia association agreement (10003/05, 2605/05).
DEVELOPMENT COOPERATION
Community external assistance
The Council endorsed a draft political agreement on a proposal for a regulation of the European Parliament and of the Council on access to Community external assistance.
Financial contribution to the European Development Fund*
The Council adopted, by a qualified majority, a decision fixing the second instalment of financial contributions for 2005 to the European Development Fund (EDF) (10435/05 and 10458/05).
A total amount of EUR 750 million, corresponding to the second instalment for 2005, will be paid by the 15 member states prior to the EU's enlargement, to finance EDF operations managed by the Commission, for aid projects in African, Caribbean and Pacific countries and member state overseas countries and territories. In addition, EUR250 million will be paid to the European Investment Bank.