Appendix 1: report on a Council meeting
held during a recess
When the House is sitting, we table a written Question
on the day of each meeting of the Council of Ministers asking
for a report on the Council meeting and on the activities of UK
Ministers in it. However, for Council meetings taking place when
the House is in recess we ask Departments to write to us instead.
A reply concerning a meeting during the Conference recess is
published below.
Letter from the Chief Secretary to the Treasury
(Mr Paul Boateng) to the Chairman of the Committee
7 OCTOBER ECOFIN
I attended the ECOFIN meeting on 7 October along
with John Grant, our Permanent Representative to the EU.
The Council adopted an interim report on the European
Action for Growth as its main contribution to the Brussels European
Council (16-17 October), on the basis of the assessment made by
the Economic Financial Committee (EFC).
The Council will discuss this issue again on the
basis of the final report to be submitted by the Commission in
November at its meeting on 25 November with a view to the European
Council meeting on 12-13 December.
The Council endorsed without comment the Economic
Policy Committee (EPC) opinion on the Commission communication
of 27 May 2003 on strengthening the social dimension of the Lisbon
Strategy: streamlining open co-ordination in the field of social
protection.
The Council reached political agreement on a first
reading common position with a view to a directive on financial
instruments markets (the Investment Services Directive). The
agreement was reached by qualified majority, with the United Kingdom,
Luxembourg, Swedish, Finnish and Irish delegations voting against.
The UK will work towards a compromise agreement at
second reading that reflects the concerns of those that opposed
the agreement.
The Council examined a proposal for an amendment
to Directive 90/435/EEC (the 'Parent-Subsidiary' Directive), that
would further reduce double taxation of dividend payments and
other profit distributions in the case of parent companies and
subsidiaries of different Member States. The Presidency and the
Commission encouraged the delegations to finalise the discussions
in order to solve the outstanding technical and political difficulties.
The Council held a policy debate on the potential
for reaching agreement on the proposal for a directive on VAT
reduced rates (document 11817/03). The UK reiterated its position
that it would not agree to the removal of its reduced and zero
rates of VAT. The Presidency invited the Commission and the Member
States to show the flexibility necessary to reach agreement on
the proposed directive.
Under Any Other Business, the President briefed the
Council on the results of the G7 meeting held in Dubai on 20-21
September 2003.
At the request of UK delegation the Council was briefed
on the state of play of the IGC conference regarding Economic
and Financial issues.
21 October 2003
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