Conclusies raad ECOFIN 4 oktober 2011 (en)

On 4th October in Luxembourg, a meeting of the ECOFIN Council took place, chaired by Minister Rostowski.

The finance ministers formally endorsed the agreement reached with the Parliament on the legislative package of six acts creating a new framework for economic governance in the EU (the so-called ‘six-pack’). The new regulations aim to strengthen economic governance in the EU, especially in the euro zone, and are part of the EU's response to the current debt crisis. It provides for greater coordination necessary to avoid excessive accumulation of imbalances and serves to increase the stability of public finances. As a result of the Council’s agreement, it is possible that the package will enter into force later this year after lawyers and linguists complete work on the finished texts of legal acts and final approval is obtained.

In addition, the Council unanimously agreed a general approach on a draft regulation on OTC derivatives, central counterparties and trade repositories. The purpose of the above regulation is to increase transparency and reduce risk on derivative markets. New solutions provide for the transmission of a repository of transaction information for OTC derivative contracts and the clearing of standardised OTC derivative contracts through central counterparties. This will avoid a situation where the collapse of one market participant causes the collapse of other market participants, thereby jeopardising the entire financial system.

The Council also adopted conclusions on climate change funding. They are part of the mandate of the Climate Change Conference in Durban. The Council confirmed the results of funding support for developing countries amounting to EUR 7.2 billion in 2010-2012 and the declaration of an aid increase to EUR 100 billion per year by 2020. The implementation of this objective must not be contrary to accepted principles of public finance management. The Ministers agreed that the private sector should play a growing role in generating climate support. Another important source should be innovative sources of financing.

In addition, the Council adopted a recommendation on the nomination of Jörg Asmussen as an ECB i board member to replace Jürgen Stark, in connection with his resignation submitted in early September this year. This candidacy, after consultation with the EP and the Council of the ECB, will be approved by the European Council.

The ministers also endorsed the EU position for the G20 meeting of finance ministers and central bank governors, which will take place on 14th-15th October in Paris.

A press release of the ECOFIN Council meeting is available on the Council website.