Informele Ecofin: hervorming EU-economie door globalisering, lastenverlichting Derde Wereld, bevriezen tegoeden terroristische organisaties (en)

(10/09/05)

Responding to the Challenges of Globalisation

In a discussion with European business leaders, Ministers, Governors and the European Commission reached consensus on the reforms needed to deliver stronger economic growth and social justice in Europe in the face of new, intense and sustained competitive pressure not least from Asia.

Three European business leaders underlined the huge potential opportunities for European businesses in developing and emerging markets, and the importance of urgent economic reform.

Patrick Cescau, CEO Unilever, said:

"For Europe to emerge as a winner from globalisation, we must put knowledge and innovation at the centre of our growth agenda."

Arun Sarin, CEO Vodafone, said:

"Europe needs a stable, pro-competitive macroeconomic outlook, coupled with a willingness to be innovative at the micro level and consider measures which give industry more flexibility. If we can achieve this balance then we will be well placed to meet the challenges before us and deliver growth and prosperity in Europe."

Bart Becht, CEO Reckitt Benckiser, said:

"Europe must get it right on regulation. That means not attempting to inflict unnecessary cost and bureaucracy that prevent innovation and growth."

André Sapir from the BRUEGEL research institute highlighted the importance of national labour market and social policy reforms and the completion of the Single Market to Europe's future prosperity.

Ministers and the European Commission agreed on the need for urgent action - at the European level and nationally in the context of Lisbon National Reform Programmes - to deliver growth and full employment for Europe in a global economy, including:

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  modern social and labour market policies that match flexibility with fairness and ensure that citizens are equipped with the skills, support and incentives they need to succeed in a changing world;

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  further reform of regulation to reduce excessive and unnecessary burdens on business, and foster growth and competitiveness;

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  a commitment to the Single Market, including the creation of a genuine single market in services; and

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  trade openness, globally and between the EU and its major trade and investment partners.

  Finance Ministers and the Commission agreed to take these themes forward as a priority over the autumn, including in the context of the forthcoming informal meeting of Heads of State and Government, and with further reports to the ECOFIN Council on regulatory reform and the policies needed to make globalisation work for Europe.

  Financing for Development

  Finance Ministers agreed the following statement on debt relief and innovative financing as part of a common EU position on development financing to be presented to the UN Financing for Development High Level Dialogue on 14 September:

  "We welcome and support the G8 proposal to cancel 100% of outstanding debt of eligible Heavily Indebted Poor Countries to the IMF, IDA, and African Development Fund and, on a fair burden-sharing basis, to provide additional resources to ensure that the initiative is fully financed without reducing the IFIs financing capacity. We must ensure that the problem of unsustainable debt will not re-occur. We look forward to the implementation of the G8 proposal subject to the resolution of important issues at the IFIs' Boards.

  EU Member States are united in their commitments to increasing aid and will follow several routes to that aim. Some Member States firmly believe that innovative financing mechanisms can help deliver and bring forward the financing necessary to achieve the MDGs and may contribute to the achievement of the new ODA/GNI target. A group of Member States will implement the International Financial Facility (IFF) as a mechanism to frontload resources for development. A group of countries have launched of the IFF for immunisation and made firm financial commitments. A group of EU Member States will implement a contribution on airline tickets to enable financing development projects, in particular in the health sector directly or through financing the IFF. Some other EU Member States are considering to what extent they will participate in these initiatives or otherwise continue to enhance traditional ODA."

  In relation to the G8 debt relief proposal, Ministers also agreed to work on the basis of a common approach to resolve key implementation issues of additionality, conditionality, uniformity of treatment and debt sustainability ahead of the UN Summit and this month's Annual Meetings of the IMF and the World Bank.

  Implementation of the Stability and Growth Pact: Council decision and recommendation concerning Portugal

  Finance Ministers today reached political agreement on a draft Decision, under article 104(6) of the EU Treaty, on the existence of an excessive government deficit in Portugal and on a draft Recommendation, under article 104(7) of the EU Treaty, on action to be taken for its correction.

  According to the figures reported so far, Portugal's planned general government deficit for 2005 is in excess of 3% of gross domestic product (GDP), the reference value provided for by the EU Treaty. The excess cannot be qualified as temporary in the sense of the Treaty and the Stability and Growth Pact, or close to the reference value. The excessive deficit does not result from an unusual event outside the control of the Portuguese authorities, or from a severe economic downturn, as defined in the Stability and Growth Pact.

  In accordance with the new provisions of the Stability and Growth Pact, and in light of relevant factors, including the cyclical slowdown and the size of the adjustment required, the draft Recommendation allows Portugal six months to present corrective action and until 2008 at the latest to bring its excessive deficit to an end. It nevertheless recommends a reduction of 1.5% of GDP in 2006 from 2005, followed by a further decrease of, at least, _% of GDP in each of the two subsequent years.

  The Council plans formally to adopt the Decision and Recommendation at the meeting of the Council (Agriculture and Fisheries) on 19 September 2005.

  EU support for economic regeneration in the West Bank and Gaza Strip

  Ministers agreed on the importance of supporting economic regeneration in the West Bank and Gaza Strip at this historic time.  They welcomed options for increased EU support for infrastructure and the private sector, delivered jointly by the Commission and EIB through technical assistance and appropriate financial resources.  This should be consistent with international efforts coordinated by James Wolfensohn. 

  Ministers invited the European Commission and European Investment Bank to take forward technical work on a European support package, including discussions with other international partners to establish a joint loan guarantee scheme for small businesses, reporting back to the Council in October on progress and for any further decisions that may be required. Current economic situation and oil

  The Informal ECOFIN discussed the current economic situation and in particular the impact of oil prices. Ministers agreed the following statement:

  "While recognising that the higher level of oil prices presents risks to growth, Ministers are determined that, in today's global economy, and with appropriate policy response the economic consequences of higher oil prices are likely to be limited, particularly when compared with other periods. In this context, they welcome the absence of underlying inflationary pressures and stress the need to avoid second round effects.

  Ministers emphasise their continuous effective coordination in reaction to rising oil prices and agree that distortionary fiscal and other policy interventions that prevent the necessary adjustments should be avoided. In particular, Ministers confirm that where short-term targeted measures are taken to alleviate the impact of higher oil prices on the poorer sections of the population, they should avoid distortionary effects. Beyond any short term measures, Ministers highlight the importance of structural reforms to make the EU economy more resilient to shocks.

  Ministers support the 2 September 2005 announcement by the International Energy Agency to make available to the market from existing emergency stocks 2 million barrels per day of oil and oil products so as to compensate for the temporary loss of production and refining capacity caused by hurricane Katrina. This announcement helped alleviate market tensions. In addition to these temporary measures on oil stocks, Ministers agreed on the following:

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  Ministers consider that continuing and strengthening the dialogue with major oil producing regions should help improve the framework conditions for investment in oil exploration and supply capacities. The EU is currently engaged in dialogues with Russia, Norway and OPEC. Ministers noted the message by OPEC that they stand ready to supply additional oil when necessary. Ministers urge oil producing countries and companies and consumers to recognise their common interest in ensuring sufficient supplies of oil. They call on oil companies to increase investment in oil exploration, production, refining capacity and alternative energy sources; they also call on countries and international institutions to work to remove barriers and create a climate conducive to investment throughout the supply chain.

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  Ministers stress the importance of energy efficiency and energy savings, the importance of innovative technologies and the use of new sources of energy in ensuring energy security. Within Member States, targets to encourage the use of renewable energy have been set. Ministers stand ready to consider further action. They are committed to develop more effective international cooperation on energy efficiency and development of clean technologies, especially with those countries that have relatively low energy efficiency.

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  Ministers consider that further efforts to improve the transparency of oil markets are warranted. The European Commission is currently working on the improvement of data, notably for stocks, for Europe. Ministers call on relevant international institutions to develop a global framework for reporting of oil reserves, which is essential for better informed market decisions, and to undertake further analysis of the workings of the oil market."

  Combating Terrorist Financing

  Tomorrow is the fourth anniversary of the appalling attacks of September 11th. On the eve of this anniversary, European Finance Ministers renewed their determination to create a hostile environment for terrorists, and those who finance terrorism. This work will continue to require action at the international, European and national levels.

  Ministers repeated their commitment to international standards to tackle terrorist finance and money laundering, to implement these standards ourselves in Europe and to helping other countries do so.

  A key element of this approach must be international technical assistance. Today, Ministers agreed that they would work together to emphasise at the IMF and the World Bank meeting later this month that international technical assistance must be coordinated, high quality and effective.

  In Europe too, we have experienced the impact of barbaric terrorist attacks, in Madrid and in London. Ministers have today welcomed progress being made in Europe to deny terrorists access to financial resources, including progress towards agreeing the third money laundering directive and the payments regulation.

  Ministers have also today agreed to work together proactively in support of further action in Europe to freeze terrorist assets. In particular Ministers agreed:

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  to urge the relevant Council bodies, working closely with the counter-terrorism co-ordinator and the Commission, to continue to assess the effectiveness of EU asset freezing action and identify areas for reform; and

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  there are real benefits in complementing EU action with administrative or judicial mechanisms at the national level to identify and freeze terrorist assets effectively.