Agenda: Stabiliteitsprogramma's (o.m. Duitsland en Italië), kwijting EU-budget 2004, budgetprioriteiten voor 2007 (en)

EUROGROUP

Eurogroup ministers will meet at 19:00 hrs on Monday 13. Joaquín Almunia i, Commissioner responsible for Economic and Monetary Affairs and European Central Bank Governor Jean-Claude Trichet i will attend. A press conference will take place after the meeting.

The meeting will start with an exchange of views on the economic situation and policy stance, particularly in the light of the interim economic forecasts issued by the Commission on 21 February (see IP/06/196) as well as the ECB more recently.

Ministers will then discuss the Commission's recent recommendations for Council opinions on the updated stability programmes of euro zone members Greece, Portugal, France, Ireland, the Netherlands, Spain, Italy and Germany (for details on the Commission's assessments see IP/06/198 - IP/06/200 (Italy) and IP/06/246 (Germany) ahead of their formal consideration by the ECOFIN Council the following day.

Ministers will also consider the Commission's communication of 22 February, assessing the action taken by Italy in response to the Council Recommendation of 28 July 2005 which set a deadline of 2007 for Italy to correct its deficit as well as a deadline of January 12 to take effective action to this effect. The Commission on 22 February concluded that although there remained significant uncertainties the action taken by Italy was consistent with the recommendation, provided that the 2006 budget was adopted fully and effectively and that further significant measures were adopted for 2007 (see IP/06/200).

Similarly, the Eurogroup ministers will consider the Commission's recommendation to give notice to Germany, according to Article 104.9 of the Treaty, to ensure that its deficit is reduced by at least one percentage point cumulatively in 2006 and 2007. The German deficit was 3.3% in 2005 (see IP/06/246 of March the 1st)

ECOFIN COUNCIL

The European Union's Council of Economy and Finance Ministers will start at 10.00 hrs on Tuesday 14 March. The European Commission will be represented by Economic and Monetary Affairs Commissioner Joaquín Almunia, Administrative affairs, Audit and Anti-fraud Vice President Siim Kallas and Financial Programming and Budget Commissioner Dalia Grybauskaité.. A press conference will take place after the meeting.

Preparation of the European Council (23-24 March 2006) (AT)

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  Key Issues Paper

Ministers will resume discussions, started in February, on a Key Issues Paper prepared by the Austrian presidency to focus the debate on the structural reforms needed as well as the commitment expected from Member States to deliver them without any further delays. The debate, which follows the presentation by the Commission at the end of January of its Annual Progress Report on the revised Strategy for Growth and Jobs, is designed as a contribution for the Spring European Council of 23-24 March.

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  Report on the EIB contribution to promoting growth and jobs

Ministers are expected to adopt a report on the European Investment Bank's contribution to boosting economic growth and employment in the Union. The proposed joint Commission-EIB initiatives aim to leverage private capital and make better use of public resources for investments in the fields of research, SMEs and large-scale infrastructure projects, notably the Trans-European Networks and regional development.

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  Better regulation (GK)

The Council will assess progress in reducing administrative burdens of EU regulation in specific sectors since November when they last discussed the issue.

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  Social protection (KvS)

The Ministers will discuss the 2006 Joint Report on social protection and social inclusion that present the key analytical findings and political messages drawn from the implementation of the Open Method of Coordination in the areas of social inclusion, pensions, and healthcare and long-term care. The following key messages could be distilled: NAPs for inclusion should become more strategic and the OMC needs to develop a strong focus on poverty among children and their families and address the multiple exclusion faced by young people from ethnic minorities in poor neighbourhoods. As for pensions, all three broad objectives of adequacy, sustainability and modernisation must be present and considered together for reform strategies to be successful, while the way forward in the area of health and long-term care is to develop positive synergies between the goals of access, quality and financial sustainability.

Application of the Stability and Growth Pact (AT)

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  Assessment of the updated stability and convergence programmes

The Council is expected to give its opinion on the updated stability/convergence programmes on the basis of recommendations put forward by the Commission on 22 February for France, Greece, Ireland, Netherlands, Portugal, Spain, Italy, Cyprus, Lithuania, Malta and the United Kingdom and on 1 March for Germany and Poland (for details on the Commission's assessments see IP/06/198 , IP/06/199 , IP/06/200 , IP/06/246 and IP/06/247).

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  Application of the ongoing excessive deficit procedure

The Council is expected to discuss the Commission's Communication, and adopt conclusions, on whether the measures adopted by Italy are likely to ensure a reduction of the deficit below 3% by the end of 2007. They are also expected to endorse the recommendation, under Art 104.9, giving Germany notice to reduce its deficit by at least one percentage point also by the end of 2007 (see above for both cases).

European Union Budget

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  Discharge 2004 Budget (VR)

The Council is expected to recommend that the Parliament gives the Commission discharge, and emits a similar positive recommendation for the Directors of each of the regulatory agencies as well as to the other institutions. Its recommendation for the Commission's discharge reflects the Court's comments and observations in its annual report, including the recognition of progress achieved.

At this point of the negotiations between EP and the Commission on the future financial perspective, the Council will only take note of the action plan towards an "integrated internal control framework" that the Commission has adopted on the 17 January 2006. There is as yet no agreement among Member States on the Commission's proposal in the plan on declarations at national level giving assurance on proper management of EU funding implemented under shared or indirect management by Member States

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  Budget priorities for 2007 (RS)

The Council is due to adopt conclusions on budgetary priorities for 2007, the first step in the annual budget procedure. These conclusions will be used by the Presidency as the basis for an exchange of views with the Parliament and the Commission on the preparation of the EU budget for 2007.

Council asks the Commission to take into account two important forthcoming elements in the Preliminary Draft Budget for 2007: the Inter-Institutional Agreement (IIA) on budgetary discipline and improvement of budgetary procedure covering period 2007-13 and the accession of Bulgaria and Romania currently foreseen for the 1st of January 2007. The common goal of the European Parliament, the Council and the Commission is to reach an agreement on the IIA and on the multi-annual financial framework for 2007-13 in April.