ECOFIN-ministers bespreken economisch beleid (en)

On 15 February in Brussels, EU finance ministers discussed for the first time in detail the six legal proposals aimed to reform economic governance. According to the Hungarian Presidency, positions have significantly approximated and the objective that the Council should adopt its position for the negotiations with the European Parliament seems manageable, Minister for National Economy György Matolcsy declared.

EU economic and financial ministers have taken “a great step” to help the EU regain the confidence of the financial markets, Mr Matolcsy said in evaluation of the Council’s work at his joint press conference with Commissioner for economic and monetary affairs, Olli Rehn i after the meeting on 15 February. The minister said it would be essential to keep the predetermined deadlines in March for both economic priorities of the Hungarian Presidency, the reform of economic governance and the implementation of the European Semester.

At the Council’s meeting, Mr Matolcsy reminded his counterparts of the conclusions adopted on the European Council’s meeting on 4 February. These have urged ministers to adopt a common position by late March so that the Presidency could present it in its negotiations with the European Parliament (EP) over the six economic governance legislative proposals. This is the only way to achieve the Hungarian Presidency’s objective: a political agreement with the EP by the end of June. At the press conference, Mr Matolcsy said that member states will be able to meet deadlines in “all significant fields”.

A major approximation of positions

In consideration of the report of the task force set up by the European Council’s Permanent President, now intensive negotiations are underway both in the Council’s ad hoc task force established in November 2010, and in the Committee of Permanent Representatives, which enabled the Presidency to identify 11 open issues in the six legislative proposals. These were discussed, now at a ministerial level, at the ECOFIN i Council’s meeting in Brussels. Mr Matolcsy welcomed that ministers managed to close a debated issue, related to the preventive arm of the Stability and Growth Pact, concerning the management of special, unexpected incomes. Moreover, “positions have notably approximated in nearly every question” regarding the other issues, Mr Matolcsy added. He also mentioned that some disagreements on public debt calculation have still remained.

According to Mr Matolcsy, the process of coordinating economic and fiscal policies has reached a new stage. The meeting consented to the new procedure of economic policy coordination and the macroeconomic and budgetary guidelines for the European Semester, in compliance with the Europe 2020 Strategy’s objectives and the statements of the Commission’s annual growth report. Based on the recommendations on the management of macroeconomic and financial challenges, member states have to develop their national reform programmes, stability or convergence programmes by the end of April at the latest.

A clear signal to the public

At the meeting, the Hungarian Minister stressed that the approval of the guidelines is a clear signal for the public that the EU is working hard on solving the most pressing challenges. This is necessary even if ministers think that the European economy is in a better shape than six months ago, but as Mr Matolcsy put it: “there are risks, such as inflation; public enemy number one is close by”.

The Council confirmed that the most important job of the EU is to restore confidence and to escape from the vicious circle of unsustainable debt, financial market malfunctions, and low economic growth. The ministers mainly called for the execution of strict budgetary consolidation, the promotion of increasing employment, and accelerating structural reforms promoting growth, especially in member states with a large structural fiscal deficit, a rocketing or rapidly increasing national debt, or a financial stress situation.

Combating tax evasion and tax fraud

At the press conference in Brussels, Mr Matolcsy also reported that the Macroeconomic Dialogue, a high forum of the Council, the Commission, the European Central Bank and social partners, has been reinforced and integrated in the European Semester’s process. “We, Europeans can grow faster if we create more jobs”, said the minister and pointed out that budgetary discipline, sustainable growth and job creation are closely related to the issue of competitiveness, which is why this topic was also touched on at the Council’s meeting.

The Hungarian Presidency reopened the issue of taxation in the Council. Mr Matolcsy pointed out that in such critical times, member states have a shared interest in minimising tax evasion and fighting tax fraud. “We are ministers of finance and let’s face it, we all love budget revenues” he added in jest. In this spirit, the Presidency proposed to restart the negotiations stalled for a year on the tax savings directive and on the agreements with third-world countries on anti-fraud and tax information exchanges. The Council also adopted the directive on the reinforcement of cooperation in tax administration without a debate, which will make the information exchange on several income categories between member states’ tax authorities automatic from 2015.

Positive developments for democracy in North Africa

At the business breakfast of the economy and finance ministers, the events in North Africa were also mentioned. Many expressed hope that these events will favour democracy in the area. The Council is following the events and will do its best to broaden democracy in the EU’s neighbouring areas as a consequence of local events, said György Matolcsy. In response to a question, the Hungarian minister said that no mention was made of freezing the Egyptian financial instruments, but if such decision must be made, then it will be the Foreign Affairs Council’s job.

EU economic and financial ministers have taken “a great step” to help the EU regain the confidence of the financial markets, Mr Matolcsy said in evaluation of the Council’s work at his joint press conference with Commissioner for economic and monetary affairs, Olli Rehn after the meeting on 15 February. The minister said it would be essential to keep the predetermined deadlines in March for both economic priorities of the Hungarian Presidency, the reform of economic governance and the implementation of the European Semester.

At the Council’s meeting, Mr Matolcsy reminded his counterparts of the conclusions adopted on the European Council’s meeting on 4 February. These have urged ministers to adopt a common position by late March so that the Presidency could present it in its negotiations with the European Parliament (EP) over the six economic governance legislative proposals. This is the only way to achieve the Hungarian Presidency’s objective: a political agreement with the EP by the end of June. At the press conference, Mr Matolcsy said that member states will be able to meet deadlines in “all significant fields”.

A major approximation of positions

In consideration of the report of the task force set up by the European Council’s Permanent President, now intensive negotiations are underway both in the Council’s ad hoc task force established in November 2010, and in the Committee of Permanent Representatives, which enabled the Presidency to identify 11 open issues in the six legislative proposals. These were discussed, now at a ministerial level, at the ECOFIN Council’s meeting in Brussels. Mr Matolcsy welcomed that ministers managed to close a debated issue, related to the preventive arm of the Stability and Growth Pact, concerning the management of special, unexpected incomes. Moreover, “positions have notably approximated in nearly every question” regarding the other issues, Mr Matolcsy added. He also mentioned that some disagreements on public debt calculation have still remained.

According to Mr Matolcsy, the process of coordinating economic and fiscal policies has reached a new stage. The meeting consented to the new procedure of economic policy coordination and the macroeconomic and budgetary guidelines for the European Semester, in compliance with the Europe 2020 Strategy’s objectives and the statements of the Commission’s annual growth report. Based on the recommendations on the management of macroeconomic and financial challenges, member states have to develop their national reform programmes, stability or convergence programmes by the end of April at the latest.

A clear signal to the public

At the meeting, the Hungarian Minister stressed that the approval of the guidelines is a clear signal for the public that the EU is working hard on solving the most pressing challenges. This is necessary even if ministers think that the European economy is in a better shape than six months ago, but as Mr Matolcsy put it: “there are risks, such as inflation; public enemy number one is close by”.

The Council confirmed that the most important job of the EU is to restore confidence and to escape from the vicious circle of unsustainable debt, financial market malfunctions, and low economic growth. The ministers mainly called for the execution of strict budgetary consolidation, the promotion of increasing employment, and accelerating structural reforms promoting growth, especially in member states with a large structural fiscal deficit, a rocketing or rapidly increasing national debt, or a financial stress situation.

Combating tax evasion and tax fraud

At the press conference in Brussels, Mr Matolcsy also reported that the Macroeconomic Dialogue, a high forum of the Council, the Commission, the European Central Bank and social partners, has been reinforced and integrated in the European Semester’s process. “We, Europeans can grow faster if we create more jobs”, said the minister and pointed out that budgetary discipline, sustainable growth and job creation are closely related to the issue of competitiveness, which is why this topic was also touched on at the Council’s meeting.

The Hungarian Presidency reopened the issue of taxation in the Council. Mr Matolcsy pointed out that in such critical times, member states have a shared interest in minimising tax evasion and fighting tax fraud. “We are ministers of finance and let’s face it, we all love budget revenues” he added in jest. In this spirit, the Presidency proposed to restart the negotiations stalled for a year on the tax savings directive and on the agreements with third-world countries on anti-fraud and tax information exchanges. The Council also adopted the directive on the reinforcement of cooperation in tax administration without a debate, which will make the information exchange on several income categories between member states’ tax authorities automatic from 2015.

Positive developments for democracy in North Africa

At the business breakfast of the economy and finance ministers, the events in North Africa were also mentioned. Many expressed hope that these events will favour democracy in the area. The Council is following the events and will do its best to broaden democracy in the EU’s neighbouring areas as a consequence of local events, said György Matolcsy. In response to a question, the Hungarian minister said that no mention was made of freezing the Egyptian financial instruments, but if such decision must be made, then it will be the Foreign Affairs Council’s job.

EU economic and financial ministers have taken “a great step” to help the EU regain the confidence of the financial markets, Mr Matolcsy said in evaluation of the Council’s work at his joint press conference with Commissioner for economic and monetary affairs, Olli Rehn after the meeting on 15 February. The minister said it would be essential to keep the predetermined deadlines in March for both economic priorities of the Hungarian Presidency, the reform of economic governance and the implementation of the European Semester.

At the Council’s meeting, Mr Matolcsy reminded his counterparts of the conclusions adopted on the European Council’s meeting on 4 February. These have urged ministers to adopt a common position by late March so that the Presidency could present it in its negotiations with the European Parliament (EP) over the six economic governance legislative proposals. This is the only way to achieve the Hungarian Presidency’s objective: a political agreement with the EP by the end of June. At the press conference, Mr Matolcsy said that member states will be able to meet deadlines in “all significant fields”.

A major approximation of positions

In consideration of the report of the task force set up by the European Council’s Permanent President, now intensive negotiations are underway both in the Council’s ad hoc task force established in November 2010, and in the Committee of Permanent Representatives, which enabled the Presidency to identify 11 open issues in the six legislative proposals. These were discussed, now at a ministerial level, at the ECOFIN Council’s meeting in Brussels. Mr Matolcsy welcomed that ministers managed to close a debated issue, related to the preventive arm of the Stability and Growth Pact, concerning the management of special, unexpected incomes. Moreover, “positions have notably approximated in nearly every question” regarding the other issues, Mr Matolcsy added. He also mentioned that some disagreements on public debt calculation have still remained.

According to Mr Matolcsy, the process of coordinating economic and fiscal policies has reached a new stage. The meeting consented to the new procedure of economic policy coordination and the macroeconomic and budgetary guidelines for the European Semester, in compliance with the Europe 2020 Strategy’s objectives and the statements of the Commission’s annual growth report. Based on the recommendations on the management of macroeconomic and financial challenges, member states have to develop their national reform programmes, stability or convergence programmes by the end of April at the latest.

A clear signal to the public

At the meeting, the Hungarian Minister stressed that the approval of the guidelines is a clear signal for the public that the EU is working hard on solving the most pressing challenges. This is necessary even if ministers think that the European economy is in a better shape than six months ago, but as Mr Matolcsy put it: “there are risks, such as inflation; public enemy number one is close by”.

The Council confirmed that the most important job of the EU is to restore confidence and to escape from the vicious circle of unsustainable debt, financial market malfunctions, and low economic growth. The ministers mainly called for the execution of strict budgetary consolidation, the promotion of increasing employment, and accelerating structural reforms promoting growth, especially in member states with a large structural fiscal deficit, a rocketing or rapidly increasing national debt, or a financial stress situation.

Combating tax evasion and tax fraud

At the press conference in Brussels, Mr Matolcsy also reported that the Macroeconomic Dialogue, a high forum of the Council, the Commission, the European Central Bank and social partners, has been reinforced and integrated in the European Semester’s process. “We, Europeans can grow faster if we create more jobs”, said the minister and pointed out that budgetary discipline, sustainable growth and job creation are closely related to the issue of competitiveness, which is why this topic was also touched on at the Council’s meeting.

The Hungarian Presidency reopened the issue of taxation in the Council. Mr Matolcsy pointed out that in such critical times, member states have a shared interest in minimising tax evasion and fighting tax fraud. “We are ministers of finance and let’s face it, we all love budget revenues” he added in jest. In this spirit, the Presidency proposed to restart the negotiations stalled for a year on the tax savings directive and on the agreements with third-world countries on anti-fraud and tax information exchanges. The Council also adopted the directive on the reinforcement of cooperation in tax administration without a debate, which will make the information exchange on several income categories between member states’ tax authorities automatic from 2015.

Positive developments for democracy in North Africa

At the business breakfast of the economy and finance ministers, the events in North Africa were also mentioned. Many expressed hope that these events will favour democracy in the area. The Council is following the events and will do its best to broaden democracy in the EU’s neighbouring areas as a consequence of local events, said György Matolcsy. In response to a question, the Hungarian minister said that no mention was made of freezing the Egyptian financial instruments, but if such decision must be made, then it will be the Foreign Affairs Council’s job.