COUNCIL OF THE EUROPEAN UNION EN 11464/07(Presse 160) PRESS RELEASE 2813th Council meeting Economic and Financial Affairs Brussels, 10July 2007 President Mr Fernando TEIXEIRA DOS SANTOS Minister of State, Minister for Finance of Portugal P R E S S Rue de la Loi 175 B – 1048 BRUSSELS Tel.: +32 (0) 2 281 6083 / 6319 Fax: +32 (0)2 281 8026 [email protected] http://www.consilium.europa.eu/Newsroom 11464/07(Presse 160) 1 EN 10.VII.2007 Main results of the Council The Council adopted decisions allowing Cyprus and Malta to adopt the euro as from 1 January 2008 , and setting conversion rates for the Cypriot pound and Maltese lira against the euro. The decisions will enlarge the euro area from 13 to 15 member states. Ministers reached broad agreement on the candidacy of Dominique Strauss-Kahn as managing director of the IMF following the resignation of Rodrigo Rato. The Council adopted a decision establishing that the Czech Republic has failed to comply with its recommendation on measures needed in order to bring the Czech general government deficit below the EU's 3% of GDP maximum threshold. It decided that no further action is required at this stage as regards Hungary , following its most recent recommendation, whilst confirming the need to continue to monitor closely Hungary's excessive deficit situation. The Council also adopted conclusions on governance and funding issues regarding the International Accounting Standards Board. 11464/07(Presse 160) 2 EN 10.VII.2007 CONTENTS 1 PARTICIPANTS........................................................................................................................... 5 ITEMS DEBATED PRESIDENCY WORK PROGRAMME ......................................................................................... 7 STABILITY AND CONVERGENCE PROGRAMMES................................................................. 8 Austria andthe Czech Republic ...................................................................................................... 8 EXCESSIVE DEFICIT PROCEDURE ........................................................................................... 9 Czech Republic............................................................................................................................... 9 Hungary.......................................................................................................................................... 9 ADOPTION OF THE EURO BY CYPRUS AND MALTA.......................................................... 11 PUBLIC FINANCES UNDER THE STABILITY AND GROWTH PACT................................... 12 ACCOUNTING STANDARDS - IASB GOVERNANCE AND FINANCING ............................. 13 GALILEO SATELLITE NAVIGATION SYSTEM - FINANCING ASPECTS ............................ 15 MEETINGS IN THE MARGINS OF THE COUNCIL ................................................................. 16 Eurogroup..................................................................................................................................... 16 Ministerial breakfast meetingon the economic situation................................................................ 16 OTHER ITEMS APPROVED ECONOMIC AND FINANCIAL AFFAIRS – VAT- Austria - Frontier power station .............................................................................................................17 COMMON FOREIGN AND SECURITY POLICY – Georgia/SouthOssetia .....................................................................................................................................17 1 Wheredeclarations,conclusions orresolutionshave beenformallyadopted bytheCouncil,thisisindicated inthe headingfortheitemconcernedandthetext is placed betweenquotation marks. Documents forwhichreferencesaregiveninthe textareavailableontheCouncil'sInternetsite (http://www.consilium.europa.eu). ActsadoptedwithstatementsfortheCouncil minutes which may bereleasedtothe publicareindicated by anasterisk;thesestatementsareavailableontheCouncil'sInternetsiteor may be obtained fromthe Press Office. 11464/07(Presse 160) 3 EN 10.VII.2007 EMPLOYMENT – Guidelines for employment policies * ..............................................................................................................18 RESEARCH – Agreement withIsrael onscientific andtechnical cooperation..........................................................................18 ENERGY – Convention on the physical protection of nuclear material andnuclear facilities*..............................................18 FISHERIES – Import quotas for fishery products *.................................................................................................................19 – Exploitationof fisheries resources....................................................................................................................19 – Fisheries agreement withKiribati.....................................................................................................................19 APPOINTMENTS – EuropeanEconomic and Social Committee......................................................................................................20 11464/07(Presse 160) 4 EN 10.VII.2007 PARTICIPANTS The governments of the Member States andthe European Commission were representedas follows: Belgium: Mr Didier REYNDERS Deputy Prime Minister andMinister for Finance Bulgaria: Mr Plamen Vassilev ORESHARSKI Minister for Finance Czech Republic: Mr Miroslav KALOUSEK Minister of Finance Denmark : Mr Claus GRUBE Permanent Representative Germany : Mr Peer STEINBRÜCK Federal Minister for Finance Estonia: Mr Ivari PADAR Minister for Finance Ireland: Mr BrianCOWEN Minister for Finance Greece: Mr Georgios ALOGOSKOUFIS Minister of National Economy andFinance Spain: Mr Pedro SOLBES MIRA SecondDeputy Prime Minister and Minister for Economic Affairs and Finance France: Ms Christine LAGARDE Minister for Economic Affairs, Finance and Employment Italy: Mr Tommaso PADOA SCHIOPPA Minister for Economic Affairs and Finance Cyprus: Mr Michalis SARRIS Minister for Finance Latvia: Mr Oskars SPURDZIĥŠ Minister for Finance Lithuania: Mr Rimantas ŠADŽIUS Minister for Finance Luxembourg: Mr JeanClaude JUNCKER Prime Minister, "Ministre d'Etat", Minister for Finance Hungary: Mr János VERES Minister for Finance Malta: Mr Lawrence GONZI Prime Minister, Minister for Finance Netherlands: Mr Wouter Jacob BOS Deputy Prime Minister, Minister for Finance Austria: Mr Wilhelm MOLTERER Vice Chancellor andFederal Minister for Finance Poland: Ms Marta GAJĘCKA Undersecretary of State, Ministry of Finance Portugal: Mr Fernando TEIXEIRA DOS SANTOS Ministro of State, Minister for Finance Romania: Mr Varujan VOSGANIAN Minister for the Economy andTrade Slovenia: Mr Andrej BAJUK Minister for Finance 11464/07(Presse 160) 5 EN 10.VII.2007 Slovakia: Mr Peter KAŽIMÍR State Secretary at the Ministry of Finance Finland: Mr Eikka KOSONEN Permanent Representative Sweden: Mr Anders BORG Minister for Finance United Kingdom: Mr Alistair DARLING Chancellor of the Exchequer Commission: Mr Joaquin ALMUNIA Member Other participants: Mr Lucas PAPADEMOS Vice-President of the European Central Bank Mr Philippe MAYSTADT President of the EuropeanInvestment Bank Mr Xavier MUSCA Chairman of the Economic andFinancial Committee Mr Joe GRICE Chairman of the Economic Policy Committee 11464/07(Presse 160) 6 EN 10.VII.2007 ITEMS DEBATED PRESIDENCY WORK PROGRAMME The Council took note of the presentation by the Portuguese presidency of a workprogramme for economic andfinancial affairs for the duration of its tenure, from July to December 2007 (11314/07) . The Council heldan exchange of views. The work programme focuses on the followingissues: • economic policy: in particular enlargement of the euroarea, implementation of the stability and growth pact, improvingthe quality of public finances, the Lisbon strategy for jobs andgrowth andthe midterm review of the European growth initiative; • the EU's better regulation initiative, aimedat strengtheningEuropean competitiveness; • completion of the EU's internal market, especially as regards taxation andthe integration of financial markets; • the EU's budget for 2008. 11464/07(Presse 160) 7 EN 10.VII.2007 STABILITY AND CONVERGENCE PROGRAMMES Austria and the Czech Republic The Council adoptedopinions on annual updates: - by Austria of its stability programme; - by the Czech Republic of its convergence programme. Adoption of the opinions concludes the current cycle of annual updates of the member states' stability andconvergence programmes; twenty programmes were examinedby the Council in February andfive in March. Under the EU's stability andgrowth pact, member states havingthe euroas their currency are requiredtopresent stability programmes, andthose not participatingin the single currency to present convergence programmes. The aim is to ensure soundgovernment finances as a means for strengtheningthe conditions for price stability andfor sustainable growth conducive to employment creation. The pact requires programmes that set out the member state's medium-term objective for its national budget, the mainassumptions about expectedeconomic developments andimportant economic variables, a description of budgetary and other economic policy measures, andan analysis of how changes in assumptions will affect its budgetary anddebt position. 11464/07(Presse 160) 8 EN 10.VII.2007 EXCESSIVE DEFICIT PROCEDURE Czech Republic The Council adopteda decision, under article 104(8) of the treaty, establishingthat the Czech Republic has