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Luxembourg, 5 June 2000 8979/00 (Presse 191)
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,7(06'(%$7(' PREPARATION FOR THE EUROPEAN COUNCIL MEETING IN SANTA MARIA DA FEIRA ON 19-20 JUNE...... IV – Broad Economic Policy Guidelines ...... IV Report on the Tax Package ...... IV Financial Services - Conclusions ...... IV EIB "Innovation 2000" Initiative...... V GREECE : ADOPTION OF THE EURO...... V ASSISTANCE FOR MONTENEGRO...... V RELEASE OF EURO COIN SAMPLES TO RELEVANT INDUSTRIES - CONCLUSIONS...... VI EMU : STATISTICAL REQUIREMENTS - CONCLUSIONS...... VI REFORM OF THE EUROPEAN INVESTMENT FUND ...... VI TAXATION...... VII Tax fraud ...... VII Excise duties ...... VII MONEY LAUNDERING...... VII STATE AID FOR ENVIRONMENTAL PROTECTION - COMMISSION GUIDELINES...... VII EURO 11 ...... VII
,7(06$33529(':,7+287'(%$7( ,167,787,21$/48(67,216 − Amendments to the Council's Rules of Procedure...... VIII (&2),1 − Special Report (No 8/99) by the Court of Auditors - Council Conclusions...... VIII 75$163257 − Trans-European Networks ...... IX (;7(51$/5(/$7,216 − FRY visa ban list ...... IX 75$163$5(1&< − Public access to documents...... IX
BBBBBBBBBBBBBBBBB )RUIXUWKHULQIRUPDWLRQFDOORU 3$57,&,3$176 The Governments of the Member States and the European Commission were represented as follows: %HOJLXP Mr Didier REYNDERS Minister for Finance 'HQPDUN Mr Michael DITHMER State Secretary for Economic Affairs *HUPDQ\ Mr Hans EICHEL Federal Minister for Finance Mr Caio KOCH-WESER State Secretary, Federal Ministry of Finance *UHHFH Mr Yannos PAPANTONIOU Minister for the National Economy and Finance 6SDLQ Mr Rodrigo de RATO y FIGAREDO Second Deputy Prime Minister and Minister for Economic Affairs and Finance Mr José FOLGADO BLANCO State Secretary for Economic Affairs, Energy and Small and Medium-Sized Enterprises Mr Enrique GIMENEZ-REYNA RODRIGUEZ State Secretary for Finance )UDQFH Mr Laurent FABIUS Minister for Economic Affairs, Finance and Industry ,UHODQG Mr Charlie McCREEVY Minister for Finance ,WDO\ Mr Vincenzo VISCO Minister for the Treasury, the Budget and Economic Planning Mr Ottaviano DEL TURCO Minister for Finance /X[HPERXUJ Mr Jean-Claude JUNCKER Prime Minister, Minister for Finance, Minister for Labour and Employment Mr Henri GRETHEN Minister for Economic Affairs Mr Luc FRIEDEN Minister for Justice, Minister for the Treasury and the Budget 1HWKHUODQGV Mr Gerrit ZALM Minister for Finance Mr Wouter BOS State Secretary for Finance $XVWULD Mr Karl-Heinz GRASSER Federal Minister for Finance 3RUWXJDO Mr Joaquim PINA MOURA Minister for Finance and Economic Affairs Mr António NOGUEIRA LEITE State Secretary for the Treasury and Finance Mr Manuel BAGANHA State Secretary for Tax Affairs )LQODQG Mr Sauli NIINISTÔ Deputy Prime Minister and Minister for Finance 6ZHGHQ Mr Bosse RINGHOLM Minister for Finance 8QLWHG.LQJGRP Mr Gordon BROWN Chancellor of the Exchequer
&RPPLVVLRQ Mr Frits BOLKESTEIN Member Mr Pedro SOLBES MIRA Member
2WKHUSDUWLFLSDQWV Mr Philippe MAYSTADT President of the European Investment Bank Mr Jean LEMIERRE Chairman of the Economic and Financial Committee Mr Norman GLASS Chairman of the Economic Policy Committee 35(3$5$7,21)257+((8523($1&281&,/0((7,1*,16$17$0$5,$'$)(,5$21 -81(
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The Council approved the report to the European Council on the draft Broad Economic Policy Guidelines for the Member States and the Community, as amended in the light of its discussions today.
Once the European Council has discussed the issue and given its political approval, the ECOFIN Council will be able to proceed with final adoption of the text of recommendations on the Broad Economic Policy Guidelines in Santa Maria da Feira on 19 June. Following its adoption, the text is to be made immediately available to the public in Feira, in line with the recommendations of the report on economic policy coordination approved by the Helsinki European Council.
The Council also adopted conclusions on drawing up the Broad Economic Policy Guidelines aimed specifically at ensuring that the ECOFIN Council, whenever it deems it necessary, is able to draw on contributions from other Council formations and that the European Council will be in a position, at its regular Spring meetings in the future, to lay down political guidelines which will be effectively followed up.
Finally, the Council asked the Economic Policy Committee to continue its examination of structural performance indicators and report back to the Council shortly.
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The Council held a wide-ranging political debate on the issue of taxation of savings income considering that this issue is a key element of the whole tax package. Discussions were based on a Presidency paper which set out the following main elements for a solution to the issue of taxation of savings income.
- exchange of information as the ultimate objective and the Directive to be drafted in such a way as to make the principle of the exchange of information part of the acquis communautaire for accession countries,
- application of a withholding tax of no less than 20% to be allowed in the medium term,
- the Commission to report regularly on Member States' experiences with the application of the Directive and on international developments concerning the access to bank information for tax purposes and to propose appropriate amendments to the Directive, with a view to the transition to the ultimate objective, as soon as possible and no later than five years after the entry into force of the Directive.
At the outcome of the discussions, the President concluded that all delegations supported the Presidency's aim to achieve a solution on this issue as soon as possible. The Presidency took note of the various comments made by the delegations on the Presidency paper and committed itself to review its paper in the light of these comments.
The Council agreed to pursue discussions on that paper at an extraordinary meeting in Porto or Feira on the eve of the European Council on 18 June (afternoon) with a view to achieving a solution.
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The Lisbon European Council accorded high priority to the implementation of the Financial Services Action Plan as a key contributor to sustainable economic growth and employment in Europe requesting its completion by 2005. The Council welcomes the Commission’s progress report on the implementation of the Action Plan and supports its overall analysis, including the references to recent market developments. The Council also endorses the priorities set out in that document and underlines the need to accelerate work on the priorities set up by the Lisbon Council.
The Council notes the progress in many areas of the Action Plan, in particular the recent political agreements for Common Positions on the proposals for Take Over Bids and for the Winding-Up and Reorganisation of Credit institutions and for the Winding-Up and Reorganisation of Insurance Undertakings, as well as the forthcoming adoption of the E-Money Directive.
The Council will pursue rapid work with a view to an agreement on amendments to the Money Laundering Directive and urges the Commission to present modified proposals to amend the UCITS Directive, proposals for a single license for issuers (Prospectus Directive), a new accounting strategy to enhance the comparability of listed companies’ financial statements throughout the Union and measures to promote consumer confidence in the field of financial services including distance marketing and e-commerce. The Council notes that progress is slower in some other areas, notably on the European Company Statute and on the complete implementation of the Settlement Finality Directive.
The Council invites the Commission to present a further monitoring report in November on the Financial Services and Risk Capital Action Plans.
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The Council noted the information provided by the EIB President, Mr Philippe Maystadt, on implementing the "Innovation 2000 Initiative", following the Bank's commitment – as referred to in point 41 of the Lisbon European Council conclusions – to make another billion euro available for venture capital operations for SMEs and its dedicated lending programme for priority areas of EUR 12 to 15 million over the next three years.
Mr Maystadt emphasised that at this point in time the Bank's initiative already involved thirteen projects involving 10 Member States and amounting to more than EUR 400 million.
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The Council welcomed the state of preparations with regard to the adoption of the Single currency by Greece which will allow formal decisions on that matter to be taken in Feira.
The Council examined the convergence reports 2000 established by the Commission and the ECB on Greece and Sweden stating that Greece, but not Sweden, now fulfils the necessary conditions for the adoption of the euro and that its derogation should be abrogated with effect from 1 January 2001. To this effect, the Commission has presented a formal proposal which also invites the Council to fix the definitive conversion rate of the drachma on the basis of its current central rate.
The Council approved furthermore its report confirming the above to the Council, meeting at the level of Heads of State and Government in Feira, after which the (ECOFIN) Council will take formal decisions on this matter at a special session in Feira in the evening of 19 June.
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The Council noted with satisfaction that the European Union's grant of EUR 20 million to Montenegro – formally adopted by the General Affairs Council on 22 May – would be made available at the earliest opportunity, thus contributing towards an improved economic situation in the Republic and promoting the programme of reforms designed to establish a fully operational market economy. As for the possibility of giving a Community guarantee to the EIB for loans to projects to be carried out in Montenegro, the Council asked the European Investment Bank to draw up a technical feasibility report on the planned projects.
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The timely adjustment of coin operated machines to euro coins is important for the successful introduction of euro coins in 2002. With a view to facilitating that adjustment, euro area Member States may lend euro coins and/or euro tokens to companies which manufacture coin validators or other coin handling equipment, for testing and adaptation of their production on their premises in the Community. They may also provide such companies with confidential information on the euro coins.
The companies will be asked to sign with the Member State concerned an agreement for non- disclosure of the confidential information. The loan of the euro coins and euro tokens will be made on the basis of specific agreements between the respective Member State and the company, including financial guarantees and strong security requirements.
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The Council endorsed the second progress report on information requirements in EMU drawn up by the Economic and Financial Committee (EFC). The Council considers that it is useful to continue monitoring the progress made in response to the recommendations agreed at its meeting on 18 January 1999. It invites the EFC to produce a further progress report by January 2001.
The Council reiterates the view that for the proper functioning of EMU and the Single Market, effective surveillance and co-ordination of economic policies are of major importance. This requires a comprehensive information system providing policy makers with the necessary data in terms of availability, timeliness and reliability, on which to base their decisions.
The Council therefore urges Member States to put greater effort into the production of those national series that are required for the timely compilation of reliable key statistics for the EU and the euro area.
To this effect, ministers undertake to review the situation in their Member States and ensure that production of statistics of particular relevance for the EU and the euro area is given the necessary priority. Ministers also undertake to examine whether their respective Member States could refrain from using derogations from relevant statistical regulations where these hamper significantly the production of statistics at the EU and euro area level.
The Council invites the Commission (Eurostat), in close collaboration with the ECB, to establish an action plan identifying for each Member State and for each statistical area where urgent progress should be made, as well as the possible modifications to existing statistical regulations. The Council invites the EFC to examine this action plan and to report back in September 2000.
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The Council adopted the following conclusions on the proposed reform of the European Investment Fund:
"The Council, informed by the Commission in accordance with article 2 of Council decision 94/375 (EC) of 6 June 1994 on Community membership of the EIF:
- unanimously endorses the thrust of the reform proposals of the EIF put forward this morning to the Board of Governors of the EIB with the aim to rationalise the activities of the EIB and the EIF in order to improve synergies and avoid overlaps, in particular in the field of venture capital; - invites the Commission, as the Community representative in the organs of the EIF, to follow this guidance in the General Meeting of the EIF on 19 June forthcoming;
- underlines the importance of having this reform approved at this General Meeting of the EIF."
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The Council took note of the report by the ad hoc Working Party on Tax Fraud. The report showed that tax evasion within the Community had reached a disturbing level.
The Council believed that the ad hoc Working Party's findings formed a useful basis for future work by the Commission and the Member States in combating tax evasion. Accordingly, the Council called on the Commission to submit as soon as possible proposals based on all the recommendations unanimously agreed upon in the course of the ad hoc Working Party's proceedings.
The Commission gave an early indication of how it intended to carry out this request. The incoming French Presidency said that it would contact the Commission about the arrangements for following up the report's recommendations.
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The Council took note of the Commission report on applying the derogations granted to three Nordic countries in respect of travellers' allowances, and the concerns voiced by several Member States on the subject.
Pending the Opinions of the European Parliament and the Economic and Social Committee, the Council recorded its political agreement on the proposal for a Directive extending until the end of 2003 the derogations granted to Sweden, thus placing that Member State on an equal footing with Finland and Denmark. Commissioner Bolkestein pointed out that the derogations granted to the three Nordic countries had laid down strict timetables for abolishing the remaining restrictions.
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The Council took note of a report by the Presidency on the state of progress pertaining to the adoption of the revised directive on money laundering as well as of various observations from the Member States. It agreed to continue its work with a view to adopting the draft Directive at the earliest possible opportunity. For its part the incoming French Presidency has indicated that it will also give high priority to this issue.
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The Council noted the progress made by the Commission in drawing up new guidelines on state aid for environmental protection, together with the a number of delegations' comments and concerns on this issue.
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Over lunch the Council was debriefed by its President on the discussions of the Euro-11 Group meetingwhich took place in the evening of 4 June 2000. ,7(06$33529(':,7+287'(%$7(
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The Council adopted a decision introducing amendments to its existing Rules of Procedure. These amendments were made necessary further to the conclusions of the Helsinki European Council of 10/11 December 1999. The most significant relate to the list of Council formations, the role of the Presidency with respect to the preparation of its work programme and the conduct of Council business and of Coreper's tasks to ensure in particular the consistency of the EU policies and actions and the involvement of the Secretary General/High Representative and the Council Secretariat in organising, co-ordinating and ensuring the coherence of the Council's work as well as the management of the Council budgetary appropriations.
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The Council examined with great interest the Special Report by the Court of Auditors on securities and guarantees provided for in the Community Customs Code to protect traditional own resources. It took note of the Court's findings and of the criticisms expressed concerning either the rules in force or their implementation by some Member States. In this respect, the Council would emphasise that while it broadly shares a number of the Court's comments, it has to take a more qualified, even guarded, position on certain points of the Special Report.
In general, the Council would point out that the problem of securities and guarantees should be examined not only in terms of protecting the financial interests of the Community, but also from the point of view of competition. Indeed, a delicate balance needs to be found between, on the one hand, the fight against fraud and/or abuses, which is in any event a priority objective, and, on the other hand, the need to guarantee Community operators customs facilities which put them on an equal footing with their competitors on the international markets. In this context the Council would point to the importance of the objectives of Decision No 210/97/EC of the European Parliament and of the Council of 17 December 1999 adopting an action programme for customs in the Community (Customs 2000) , recently amended by Decision No 105/2000/EC.
As regards the rules in force, namely the Community Customs Code set out in Council Regulation (EEC) No 2913/92 and Commission Regulation (EEC) No 2454/93 on its implementation, the Council would point out that:
– it is for the Commission to exercise its right of initiative and to submit any proposal that it deems appropriate;
– the Commission states in its reply that it is still looking into many of the cases mentioned by the Court; the Council will carefully examine any proposals which the Commission may submit following its investigations;
– Regulation (EC) No 955/1999 of the European Parliament and of the Council of 13 April 1999 and its corollary within the framework of the Convention on a common transit procedure substantially changed the guarantee system in the transit area; reform of the transit procedures, which was the subject of a Council Resolution of 21 June 1999 , should soon be completed and the imminent implementation of a computerised transit system should be a key factor in the solutions to be found in this area.
OJ L 33, 4.2.1997. OJ L 13, 19.1.2000. OJ C, 193, 9.7.1999. With respect to the Member States' application of the rules in force, the Council, without commenting on the substance, as it has neither the means nor the competence to judge whether the Court of Auditors' criticisms on specific points are valid, would point out that it is for the Commission to play its role of guardian of the Treaty to the full and to ensure that Community law is applied.
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The Council unanimously adopted its common position concerning the criteria on the inclusion of seaports and inland ports in the Trans-European Networks.The common position will be transmitted to the European Parliament for its second reading, in accordance with the co-decision procedure.
This common position is aimed at amending Decision 1692/96/EC on Community guidelines for the development of the trans-European transport networks (TEN) providing a broad network for the establishment of an integrated, multimodal infrastructure network. The intention of the draft Decision is to clarify and reinforce the position of seaports and inland ports in the TEN; these interconnection points are a precondition for interchange between different transport modes. The development of these interconnection points will contribute to a more efficient use of the entire network in both operational and environmental terms. Furthermore, the identification of interconnection points in the TEN is intended to improve the coordination of infrastructure development in general and of projects of common interest in particular. It therefore involves a degree of selection in order to ensure a coherent and coordinated development of TEN networks. The actual implementation of transport infrastructure remains the responsibility of the Member States, local regional planning authorities and, in certain cases, the private sector. As the development of seaports and inland ports is predominantly market-driven, the identification of the interconnection points will also help the private and public sectors in making long-term investment decisions.
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The Council adopted a decision amending its decision 1999/319/CFSP concerning additional restrictive measures against the FRY. This decision contains a further updating of the EU's visa ban list concerning persons from this country.
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The Council adopted a decision concerning the access to documents following the judgment of the Court of First Instance of 6 April 2000 in Case T-188/98 (Kuijer v. Council), the Danish, Swedish and United Kingdom delegations voting against.