Laatste bijeenkomst Economische en Financiële ministers tijdens Tsjechisch voorzitterschap (en)

EU Finance and Economy Ministers met for the last time under the Czech Presidency. The Luxembourg meeting was chaired by Czech Finance Minister Eduard Janota. The Council focused on preparations for the June European Council and current economic and tax-related issues.

The Ministers discussed the current economic developments. The European Commission outlined a timetable for further steps to be taken in relation to the implementation of the Stability and Growth Pact.

This ECOFIN Council meeting was attended by the Chairman of the International Accounting Standards Board (IASB), Professor Sir David Tweedie. The Ministers thus took up the debate on accounting standards started at the informal ECOFIN meeting in Prague in April. The parties exchanged views on the need for changes in accounting standards in Europe, also with the aim of making them equivalent to standards valid in the USA. The Ministers appreciated the ISAB information on current ISAB activities and its future objectives.

The main item on the agenda was the preparation of the EU summit, to be held on 18-19 June 2009 in Brussels. The ECOFIN Council paid special attention to the reform of the European supervisory framework on the basis of recommendations made by the de Larosière group and the Commission Communication of 27 May. In its conclusions, the Council endorsed the establishment of the European Systemic Risk Board (ESRB) – an independent body intended to exercise macro-prudential supervision over all financial sectors. At the micro-level, the Council gave the green light to the creation of the European System of Financial Supervisors (ESFS), to strengthening and more profound harmonisation of supervisory practices in the EU and to the transformation of existing supervisory bodies to European supervisory authorities (ESA) endowed with legal personality.

The Finance Ministers also assessed the implementation of the European Economic Recovery Plan. The Member States had adopted measures to boost the EU economy in 2009 and 2010, amounting to 5 % of the EU’s GDP (including automatic stabilisers). The Ministers agreed that the majority of measures adopted were timely, targeted and in line with the long-term priorities of the EU within the framework of the Lisbon Strategy, and they highlighted the need to closely monitor their efficiency.

Further, the Ministers assessed bank support schemes, particularly bank recapitalisation and state guarantees for bank debts. Through guarantees and recapitalisations, the Member States have given banks potential support amounting to more than 30 % of GDP. The Council agreed that these measures to support the banking sector have been efficient and have led to the stabilisation of the financial market and the maintenance of credit flows. However, the sector remains very fragile and the Member States should be ready to adopt further measures if necessary, including steps to rid banks of impaired assets.

In the context of the long-term preparations for the UN Copenhagen conference in December, the June European Council meeting will address the issue of climate change. In this respect the ECOFIN Council discussed international financing of climate policies. The Ministers reached a consensus on concrete aspects of the financial architecture that should support the climate policies. Furthermore, they agreed on the main principles for global distribution of the costs of such support, i.e. the economic output and volume of released emissions. By adopting the Council conclusions the Finance Ministers sent out an important signal to third countries ahead of the forthcoming international negotiations.

In addition to the four topics mentioned above relating to the preparations for the European Council in June, as a follow-up to the Commission communication from May, the Ministers addressed the issue of good governance. They welcomed the Commission proposal on acceleration of the work on legislative proposals relating to the savings taxation Directive, the Directive on administrative cooperation in the tax field and the Directive on mutual assistance for the recovery of claims. The Council also appreciated the achievements of the Czech Presidency in this area. The Ministers agreed on the need to comply with the OECD standards for exchange of tax information upon request and to implement the standards within the EU as well as in relation to third countries. The Council has also acknowledged that the Commission will submit proposals for negotiation directives with selected third countries (San Marino, Andorra, Monaco, Switzerland) with respect to agreements that would include these standards. The Council also called upon the Commission to conclude negotiations with Lichtenstein on the anti-frau agreement. The ECOFIN Council will address the issue of good governance again in the autumn.

The Ministers also adopted amendments to the Directive on a common system of value added tax (VAT) regarding tax evasion related to imported goods, and a technical amendment of the same directive, with respect to import and the place of taxation of gas and electricity and tax deduction systems during use of property for business and non-business purposes

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The Ministers welcomed the Commission communication from April on structured retail investment products. They called upon the Commission to continue its activities with the aim to ensure an appropriate regulatory environment for the sale of these products, information and reinstated consumer trust in the financial markets.

Contact:

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  Radka Kohutová, Spokeswoman of the Ministry of Finance
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  Tel. : +420 257 042 103, GSM: +420 724 845 394, E-mail: radka.kohutova@mfcr.cz