SWEDISH CONVERGENCE PROGRAMME - COUNCIL CONCLUSIONS
The Council welcomed the presentation of the Swedish
convergence programme. The programme sets out the strategy of
the Swedish government for achieving compliance with the EMU convergence
criteria and for restoring stability to the Swedish economy and
thus creating the conditions for sustained growth of output and
employment. At the centre of the convergence programme is a budgetary
adjustment policy designed to reverse the serious imbalances in
public finances which emerged in Sweden during the recession in
the early 1990s. The Council welcomed the budgetary objectives
of the programme (elimination of the government deficit by 1998
and a downward trend in the gross debt ratio after 1996) and found
impressive the scale of the adjustment efforts being undertaken.
It noted especially that most of the measures necessary to achieve
the adjustments have already been decided by the government and
adopted, with wide support, by the Swedish parliament. The underlying
macroeconomic assumptions are realistic. The programme, in its
format and content, respects the code of conduct adopted by the
Council in February 1994 and in that respect could serve
as a model.
The Council also welcomed the clear support by the
Swedish government for the inflation objectives of the Swedish
central bank. Determined implementation of the programme should
progressively result in lower longterm interest rates in
Sweden and a reduced burden on monetary policy. Keeping inflation
low will also require moderation in wage developments.
The Council considered that success in achieving the objectives of the programme would depend crucially on maintaining control of public expenditure at all levels, including local government. It therefore attached considerable importance to the strengthening of the expenditure control system which the Swedish government envisages and to the proposed sixmonthly monitoring of the implementation of the programme. It urged the Swedish government to react quickly to offset any slippages that might become evident in this monitoring process and took the view that additional measures, if necessary, should concentrate on the expenditure side and not raise the tax burden further.
EMPLOYMENT: PROGRESS REPORT FOR THE EUROPEAN
COUNCIL MEETING IN MADRID
The Council took note of the progress report in the
context of the strategy to combat unemployment as defined in the
conclusions of the Cannes European Council, with a view to the
next European Council meeting in Madrid.
In this context, it confirmed the Member States'
commitment to forward to the Commission in early October multiannual
programmes to combat unemployment.
The Council hoped that the Madrid Summit would receive
a single report on implementation of those multiannual programmes.
That document should be the result of close coordination between
the Commission, the ECOFIN Council and the Social Affairs Council.
To that end, the Council asked the Economic Policy Committee
to submit an initial draft for its October meeting.
In the light of the October discussion, the Economic Policy Committee, in coordination with the Commission and the Group of personal representatives of the Ministers for Social Affairs, must finalize the draft report for submission to the ECOFIN Council on 27 November and the Social Affairs Council on 4 December. That draft must contain specific employment policy recommendations enabling action to be taken at both Community and national level with due regard for the respective fields of competence.
PREPARATION OF THE STRUCTURED DIALOGUE WITH
THE CCEE
The Council made preparations for the joint meeting
with the Finance Ministers of the CCEE to be held on the
occasion of the next ECOFIN Council meeting on 23 October.
In this context, it heard a presentation by Mr MONTI,
Member of the Commission, of a note drafted by the Commission
for that meeting, dealing with financial reform of the CCEE.
It also noted the information supplied by the Chairman of the
Monetary Committee, Mr WICKS, concerning the outcome of the Committee's
examination of that note.
The aim of the meeting with the CCEE is to have an open discussion on the progress of the financial reform being carried out in those countries and in particular the liberalization of capital movements and taking account of the criteria set out in the Commission's White Paper.
GUARANTEE FUND
The Council held an initial policy discussion on
the communication entitled "Limits imposed by the Guarantee
Fund mechanism on Community loans and loan guarantees in respect
of third countries", which the Commission forwarded to the
Council in August.
The Guarantee Fund was set up in 1994 in the context
of implementation of the 1993-1999 financial perspective approved
by the Edinburgh European Council to protect the Community budget
from possible default by its debtors. The Fund mechanism essentially
covers macrofinancial assistance measures for third countries
and guarantees for EIB loans outside the Community.
In its communication, the Commission points out that
if the guarantee mechanism remains unchanged, it will be impossible
to renew the EIB's multiannual loan allocations at their present
level while maintaining a minimum macro-financial assistance capacity.
It therefore explores the various options for reconciling the
objectives approved in Cannes, i.e. increasing financial assistance
to third countries (in particular the CCEE and the Mediterranean),
with the budget discipline imposed by the guarantee mechanism.
The exchange of views covered the solutions envisaged
by the Commission and the scale of future requirements, in particular
with regard to EIB assistance and macro-financial assistance.
Following this initial policy debate and in order to better identify the problem, the Council instructed the Permanent Representatives Committee to establish an overall financial framework for future Community loans and guarantees for third countries. In this context, the Council also asked it to examine in greater depth - in the light of delegations' comments - the options envisaged in the Commission communication and to begin studying the report which the Commission has just forwarded concerning guarantees covered by the Community budget for loans granted by the EIB to third countries.
CROSS-BORDER CREDIT TRANSFERS
The Council reached political agreement - with the
abstention of the United Kingdom and Swedish delegations - on
its common position on the proposal for a Directive on cross-border
credit transfers. The text will be formally adopted at a future
meeting after its finalization so that it can be forwarded to
the European Parliament for the continuation of the codecision
procedure.
The aim of this proposal for a Directive is to contribute
to the completion of the internal market and EMU. The Commission
submitted it in 1994 in the context of a broader strategy set
out in a communication on "European Union fund transfers:
transparency, performance and stability".
The common position provides that the proposed Directive
will apply to cross-border credit transfers in the currencies
of the Member States and in ecus of amounts less than ECU 25 000
(Article 1). Two years after implementation of the Directive,
that ceiling will be raised to ECU 30 000.
The other main provisions provide for:
- customer information, both in advance, concerning
the conditions applying to transnational credit transfers, and
subsequently, concerning the execution and receipt of a transfer
(Articles 3 and 4);
- the time-limits within which the originator's institution
and the beneficiary's institution must execute the transfer (five
banking business days and one banking business day respectively),
failing which compensation must be paid (Article 5);
- the obligation to execute the transfer in accordance with the instructions contained in the payment order, in particular with regard to the bearing of costs (Article 6);
- in the event of non-execution of transfers, the
obligation to refund the full amount up to a limit of ECU 10 000,
plus interest and the amount of the charges, in principle within
fourteen banking business days (Article 7).
On the basis of the common position, Member States
will have two and a half years after publication of the Directive
to incorporate it into national law. Two years after its implementation,
the Commission will submit to the Council a report on the operation
of the provisions of the Directive.
TRANS-EUROPEAN NETWORKS
The Council formally adopted the Regulation laying
down general rules for the granting of Community financial aid
in the field of trans-European networks, thereby completing the
cooperation procedure to which the Regulation is subject. (The
Council had adopted its common position on 31 March).
The Regulation - which is essentially financial -
provides the legal basis for the disbursement of funds for the
period 1995-1999, i.e. ECU 2 345 million for projects of common
interest in the field of trans-European networks for transport,
telecommunications and energy infrastructures. It defines the
conditions and procedures for granting Community aid to those
projects.
The adoption of the Regulation enables the funds
allocated for this year (ECU 240 million) to be disbursed
without waiting for formal adoption of the sectoral decisions
on Community guidelines for the three abovementioned trans-European
networks.
The Ministers met their EFTA counterparts over lunch to discuss the employment situation and combating unemployment (see joint press release, 9759/95 Presse 257).
OTHER DECISIONS
(Adopted without debate).
Financial Regulation applicable to the general
budget of the European Communities
The Council adopted three Regulations amending the
Financial Regulation of 21 December 1977 applicable
to the general budget of the European Communities:
- the first follows the entry into force of the Treaty
on European Union and concerns the European Economic Area and
borrowing and lending operations (1st round);
- the second concerns the treatment of fines, role
of the financial controller, recovery of debts and late adjustments
(3rd round);
- the third concerns the special provisions applicable
to research and technological development appropriations (5th
round).
Those amendments form part of a broader revision
of the Financial Regulation consisting of six rounds; a Regulation
forming part of the first round (Economic and Social Committee,
Committee of the Regions, Ombudsman) was adopted on 25 July 1994
and the secondround Regulation (Edinburgh follow-up) was
adopted on 31 October 1994.
Relations with San Marino
The Council approved draft Decision No 1/95
of the EC-San Marino Cooperation Committee amending the list of
customs offices.
Turkey: Textiles
The Council adopted a Decision concerning the conclusion
of the arrangement between the European Community and Turkey on
trade in clothing products, which applies until 31 December 1995.
CCEE: Textiles
The Council adopted a Decision on the formal conclusion
of additional protocols to the Europe Agreements on trade in textile
products between the European Community and the CCEE.
It should be emphasized that, following Commission proposals concerning a series of agreements with third countries, submitted in July and October 1993, the Council adopted in December 1993 a decision provisionally implementing those protocols. That decision was taken on account of the difficulties involved in drawing up the texts in all the languages of the Community and those of the third countries concerned.
Bulgaria and Romania: Steel products
The Council approved two draft Decisions - to be
adopted by the EC-Bulgaria and EC-Romania Association Councils
respectively - introducing a double-checking system until 31 December 1995,
without quantitative limits, for the export of certain steel products
from those two countries to the Community.
Blinding lasers
With a view to the Conference due to open in Vienna
on 25 September to review the 1980 Convention on inhumane conventional
weapons, the Council adopted a common position on blinding lasers.
The aim of the common position is to work towards
adoption by the Conference of an additional protocol to the Convention
which would cover blinding lasers in order to satisfy the humanitarian
concern prompted by the use of those weapons, on the understanding
that the provisions of such a protocol would not concern the legitimate
military use of lasers.
In addition to the common position, the Council had
already adopted (in April) a joint action concerning anti-personnel
land-mines (see press release 6319/95 Presse 114), which are particularly
dangerous to civilians. Those subjects will be the two main topics
for the negotiations on Protocol II to the 1980 Convention.
Fisheries
The Council adopted Regulations:
- incorporating into Community law certain technical
conservation measures agreed at the 20th session of the International
Baltic Sea Fishery Commission held from 12 to 16 September 1994,
notably on revised mesh sizes, exit windows, a onenet rule
for the cod fishery and seasonal closures of the fishery. (This
is the fifth amendment of Regulation No 1866/86 laying down
certain technical measures for the conservation of fishery resources
in the waters of the Baltic Sea, the Belts and the Sound);
- making certain amendments to Regulation No 3094/86
(eighteenth amendment to the Regulation laying down certain technical
measures for the conservation of fishery resources) in order to
ban from 1 January 1996 the use of
= driftnets for catching tuna in waters under the
sovereignty or jurisdiction of Spain or Portugal in ICES subareas VIII,
IX and X and CECAF areas, and
= purse seines for catching tropical tuna in waters under the sovereignty or jurisdiction of Portugal in parts of ICES subarea X and in certain CECAF areas.
The Council also adopted Decisions concerning:
- accession of the Community to the Agreement creating
the Indian Ocean Tuna Commission, within the FAO framework;
- authorization given to the Commission to negotiate
a fisheries agreement with South Africa.
Telecommunications
Following the agreement reached at its meeting on
13 June 1995, the Council formally approved the Resolution on
the implementation of the future regulatory framework for telecommunications.
The text of the Resolution was published in press release 7840/95 (Presse
175).
Appointments
Committee of the Regions
The Council adopted a Decision appointing members
of the Committee of the Regions:
- Mr Hartmut PERSCHAU is appointed a full member
to replace Mr Klaus Wedemeier for the remainder of his term of
office, i.e. until 25 January 1998;
- Mr Josef LEINEN is appointed an alternate member
to replace Mr Reinhold Kopp for the remainder of his term of office,
i.e. until 25 January 1998;
- Mr Günter NIEDERBREMER is appointed an alternate
member to replace Mr Andreas Fuchs for the remainder of his term
of office, i.e. until 25 January 1998.