Verslag Ecofin Raad van 10 en 11 oktober 2005 te Luxemburg

Ministerie van Financi�n

Toezending verslag Ecofin Raad van 10 en 11 oktober 2005 te Luxemburg

De Voorzitter van de Tweede Kamer der Staten-GeneraalPlein 22511 CR DEN HAAG DatumUw brief (Kenmerk)Ons kenmerk
21 oktober 2005BFB 2005-2269M
Onderwerp
Toezending verslag van de Ecofin Raad van 10 en 11 oktober 2005 te Luxemburg. Hierbij zend ik u, mede namens de Staatssecretaris, het verslag van de vergadering van de Ecofin Raad van 10 en 11 oktober 2005 te Luxemburg. Overeenkomstig de toezegging van de Staatssecretaris van Europese Zaken doe ik u tevens hierbij de agenda van de Ecofin van 8 november a.s. toekomen, voor zover thans bekend. Kort voor het AO en de Ecofin zal tevens, zoals gebruikelijk, de geannoteerde agenda aan uw kamer worden gezonden. Dit verslag wordt tevens toegezonden aan de Voorzitter van de Eerste Kamer. De minister van Financiën,
G. Zalm

Bijlagen (zie onderaan):

- Verslag ecofin van 10 en 11 oktober

- Agenda voor de ecofin van 8 november

- Het presidency

Verslag Eurogroep en Ecofin 10 en 11 oktober te Luxemburg Eurogroep
De Eurogroep spreekt over de economische situatie en economisch herstel in de Eurozone, alsook de externe vertegenwoordiging van de Eurozone bij onder andere de Wereldbank en het IMF. De economische ramingen voor 2006 zijn sterk verbeterd ten opzichte van het voorjaar. De budgettaire situatie blijft in een aantal landen punt van zorg. Met betrekking tot de sterk gestegen olieprijzen wordt geconstateerd dat die tot nog toe niet, via zogenoemde tweede ronde effecten, een stijging van de onderliggende zogenoemde 'core inflation' teweegbrengen. Ten opzichte van de in Europa geharmoniseerde algemene prijsindex (HICP) wordt in de 'core inflation' de prijsstijging van een aantal goederen, waaronder grondstoffen niet meegenomen. In de Eurogroep wordt opgemerkt dat een aantal marktpartijen, vooral in de VS, overigens van mening is dat de 'core-inflation' steeds minder belangrijk is. Zij baseren dat op de gedachte dat grondstoffen, door de sterke economische ontwikkeling wereldwijd, sterke stijgingen vertonen waardoor er een soort autonome stijging in grondstofprijzen zit. Minister Zalm wijst op de tekortkoming in deze redenering. Olieprijzen stijgen niet elk jaar met 30 procent. Het is wel denkbaar dat de prijzen met enkele procenten boven de algemene prijspeilstijgingen uitkomen. Dat heeft waarschijnlijk een inflatieverhoging met een of enkele tienden van procenten tot gevolg en dus blijft de 'core-inflation' onverkort een belangrijke indicator. Deze zienswijze wordt gedeeld door de groep. Met betrekking tot vertegenwoordiging geeft Minister Zalm aan voorstander te zijn van de systematiek van gemengde kiesgroepen zoals Nederland die in het IMF en de WB leidt. Daarin zitten zowel lenende als niet-lenende landen en dit beperkt de tegenstellingen tussen die groepen. Het punt wordt in de vergadering verder niet besproken. Naar verwachting zal het onderwerp in de toekomst opnieuw ter tafel komen. Ecofin
Stabiliteit- en Groeipact: Buitensporig tekortprocedure Hongarije Commissaris Almunia (Economische en monetaire zaken) geeft een presentatie over de bevindingen van Eurostat met betrekking tot de tekortcijfers van Hongarije. Er zijn nieuwe data beschikbaar gekomen, het blijkt dat het tekort over 2005 beduidend hoger uit zal vallen dan eerder geraamd. Ook zal de budgetdoelstelling voor 2006 waarschijnlijk niet gehaald worden. In juli concludeerde de Europese Commissie intern nog dat er effectieve maatregelen genomen zijn door Hongarije om het tekort terug te dringen. Commissaris Almunia gaf aan dat de Commissie daarop terugkomt en dat ze, nu het tijd is om haar oordeel en aanbevelingen aan de Raad kenbaar te maken, in november zal komen met een aanbeveling onder 104.8 dat Hongarije zich niet houdt aan het afgesproken tijdpad voor tekortreductie. EFC voorzitter Koch-Weser bevestigt het oordeel van de Commissie over de zorgwekkende situatie en noemt als mogelijk drukmiddel (om Hongarije tot actie te prikkelen of af te houden van de voor 2006 voorziene belastingverlaging van 1% BBP) het inhouden van uitkeringen uit het cohesiefonds. De Ecofin van november zal vervolgstappen bespreken. Economische regeneratie van de Westoever en de Gazastrook De president van de Europese Investeringsbank, Philippe Maystadt en Commissaris Almunia geven een presentatie over de voortgang van de identificatie van projecten en concrete voorstellen met betrekking tot het verbeteren van de economische leefbaarheid in de Westoever en de Gazastrook. Met name de infrastructuur, de overheidsfinanciën en het ondernemingsklimaat dienen verbeterd worden. Om dit te realiseren is naast eventuele leningen, technische assistentie belangrijk. Minister Brown kondigt aan om binnenkort samen met Almunia en Maystadt de Westoever en Gazastrook te bezoeken. Economische relatie tussen de VS en de EU: follow-up van de June Summit Commissaris McCreevy (Interne markt en diensten) benadrukt in een presentatie het belang van een dialoog tussen de EU en haar grootste handelspartners, met name de VS. Verschillende lidstaten geven aan dat betrokkenheid van de Ecofin bij deze dialoog belangrijk kan zijn. Minister Zalm wijst op de uitkomsten van de recente OESO studie die positieve groei-effecten van nauwere transatlantische samenwerking en vermindering van administratieve barrières schetst. McCreevy geeft aan dat op het terrein van de financiële markten reeds een goed werkende informele dialoog met de VS bestaat en dit heeft tot goede resultaten geleid, bijvoorbeeld op terrein van accountantsdiensten en financiële conglomeraten. In het voorjaar van 2006 zal er weer een top gehouden worden tussen de VS en de EU. Voordat deze top plaatsvindt, zal er een paper worden voorbereid dat in de Ecofin besproken zal worden. Concurrentiebeleid: onderzoek naar sectoren
Commissaris Kroes (Mededinging) geeft een presentatie over de sectorale onderzoeken die worden verricht naar mededinging in onder andere de sectoren gas- en energie, verzekering en (retail) banken (bijvoorbeeld betaalkaarten en rekeningen courant). De onderzoeken hebben tot doel obstakels in deze markten op te sporen. Er zullen vragenlijsten worden verstuurd aan alle belanghebbenden. Commissaris Kroes gaf aan te verwachten dat door middel van evaluaties de Commissie in staat zal zijn een balans te houden met kosten voor de betreffende sectoren. Verschillende lidstaten spreken hun steun uit voor deze sectorale onderzoeken. Minister Zalm verwelkomt de onderzoeken en wijst op het feit dat nationale obstakels grensoverschrijdende overnames kunnen bemoeilijken en een afschrikwekkende werking hebben, zodat ondernemingen er niet eens aan beginnen om overnames in andere lidstaten te doen. Hij geeft aan dat het voor de Commissie uiteraard lastig is om zich bezig te houden met zaken die niet plaatsvinden, terwijl het economische belang van het opruimen van remmende barrières juist heel groot is voor een goedwerkende interne markt. Commissaris Kroes zal de Ecofin informeren zodra de onderzoeksresultaten bekend zijn. Financiële diensten: Post-Financial Services Action Plan (post-FSAP) De Ecofin neemt raadsconclusies aan over 'post FSAP'. Op 3 mei presenteerde de Europese Commissie een groenboek waarin zij haar eerste ideeën uiteenzet over de prioriteiten die haar beleid op het gebied van financiële diensten de komende vijf jaar zullen beheersen (vooral uitvoering FSAP: Financial Services Action Plan). De raadsconclusies betreffen met name het belang van betere regelgeving, de uitdaging die een interne markt vormt voor financieel toezicht in Europa en het belang van het bevorderen van een efficiënte werking van financiële markten. Commissaris McCreevy meldt dat de Europese Commissie de Raadsconclusies steunt en wijst op een gedeelde verantwoordelijkheid van de Ecofin Raad en de Europese Commissie op het gebied van verbetering van regelgeving. In november zal de Commissie haar definitieve plannen presenteren in een Witboek dat vervolgens in de Ecofin besproken zal worden. Enkele ministers benadrukten in navolging van minister Zalm, het belang van de implementatie van het FSAP, de samenwerking tussen toezichthouders, het uitvoeren van impact assessments voor indiening van een nieuw voorstel, betrokkenheid van consumenten in de voorfase van regelgeving en een herziening van het deposito garantiestelsel. Een grote lidstaat geeft aan dat een verbetering van de regelgeving geen doel op zich is maar een middel om een interne markt te bereiken. Verbetering en mogelijkheden voor betere regelgeving De Ecofin krijgt een overzicht van de vorderingen die de drie comités van nationale toezichthouders op effecten-, bancair- en verzekerings- en pensioengebied maken. De comités richten zich vooral op het afstemmen van gemeenschappelijke lijnen bij het implementeren van wet- en regelgeving. Oogmerk is dat ondernemingen de Europese markt ook daadwerkelijk als één markt ervaren op gebieden waar geharmoniseerde wetgeving bestaat. De comités worden wel aangeduid als 'Lamfalussy comités' omdat hun rol is vastgelegd naar aanleiding van voorstellen die onder leiding van dhr. Lamfalussy tot stand kwamen. De voorzitters van de drie comités; Bjerre-Nielsen (Committee of European insurance and occupational pensions supervisors), Doctors van Leeuwen (Committee of European securities regulators), en Roldan (Committee of European banking supervisors) geven in de Ecofin ieder een presentatie over de verbetering van financiële regelgeving en de samenwerking tussen de drie comités. Zij geven aan dat de Lamfalussy-structuur goed werkt en dat de drie comités volgende maand een Memorandum of Understanding zullen ondertekenen om samenwerking meer vorm te geven. Daarnaast bekijken de drie comités de mogelijkheden om nationale toezichthouders te stimuleren meer samen te werken, hun effectiviteit te verbeteren en de administratieve lasten van regelgeving te verminderen nu de financiële markten steeds verder geïntegreerd raken

GENERAL SECRETARIAT
OF THE COUNCIL Brussels, 18 October 2005
DRAFT AGENDA
ECOFIN COUNCIL
(Brussels 8 November 2005)

- Adoption of the agenda

- Approval of the list of "A" items

- EC Budget : Roadmap to an integrated internal control framework
- Council conclusions

- Better Regulation: Admnistrative Burdens Methodology
- Council Conclusions

- EU Statistical Governance: follow-up to June 2005 Council conclusions
- Taxation

- VAT "One stop system": Progress report

- VAT Reduced Rates: Political agreement

- Financial Services: Cross-border consolidation in the EU financial sector
- Implementation of the Stability & Growth Pact
- AOB
In the margins of the Council
13h00: Lunch with EFTA countries
15h00: Macroeconomic dialogue
p.m. Eurogroup 7 November (19.00h)

P R E S S
R u e d e l a L o i 1 7 5 B - 1 0 4 8 B R U S S E L S T e l . : + 3 2 ( 0 ) 2 2 8 5 6 0 8 3 / 6 3 1 9 F a x : + 3 2 ( 0 ) 2 2 8 5 8 0 2 6 press.office@consilium.eu.int http://ue.eu.int/Newsroom 12800/05 (Presse 250) 1
EN
COUNCIL OF
THE EUROPEAN UNION
EN
12800/05 (Presse 250)
PRESS RELEASE
2682nd Council Meeting
Economic and Financial Affairs
Luxembourg, 11 October 2005
President Mr Gordon Brown
Chancellor of the Exchequer of the United Kingdom
11.X.2005
12800/05 (Presse 250) 2
EN
Main Results of the Council
The Council agreed on rules aimed at improving the reliability of company financial statements and on new capital adequacy requirements for banks and investment firms, as amended by the European Parliament in first reading.
The legislation will be adopted without discussion at a forthcoming Council meeting. The capital adequacy requirements follow international guidelines established last year by the Basel committee on banking supervision with the aim of strengthening confidence in the financial system.
11.X.2005

1 Where declarations, conclusions or resolutions have been formally adopted by the Council, this is indicated in the heading for the item concerned and the text is placed between quotation marks. The documents whose references are given in the text are available on the Council's Internet site http://ue.eu.int.
Acts adopted with statements for the Council minutes which may be released to the public are indicated by an asterisk; these statements are available on the abovementioned Council Internet site or may be obtained from the Press Office.
12800/05 (Presse 250) 3
EN
CONTENTS1
PARTICIPANTS............................................................................................................................... 4 ITEMS DEBATED
EARTHQUAKE IN SOUTH ASIA .................................................................................................... 6 EXCESSIVE DEFICIT PROCEDURE............................................................................................... 7
- Hungary: follow-up to Council recommendation under article 104(7)...................................... 7 ECONOMIC REGENERATION IN THE WEST BANK AND THE GAZA STRIP........................ 8 DIALOGUE WITH THE UNITED STATES ..................................................................................... 9 COMPETITION POLICY - ENQUIRIES IN FINANCIAL SERVICES AND ENERGY.............. 10 FINANCIAL SERVICES - FOLLOW-UP TO THE COMMISSION'S GREEN PAPER ............... 11 FINANCIAL MARKETS AND SERVICES : BETTER REGULATION ....................................... 13 OTHER ITEMS APPROVED
ECONOMIC AND FINANCIAL AFFAIRS

- New capital adequacy requirements for banks and investment firms.................................................................... 14
- Rules aimed at improving reliability of company accounts................................................................................... 15
- Medium-term financial assistance to member states - Council conclusions.......................................................... 15
- Stability and growth pact - Code of conduct - Council conclusions...................................................................... 16 TAXATION

- VAT - Germany and the Netherlands - Cross-border bridge................................................................................. 17 EXTERNAL RELATIONS

- Indonesia - EU monitoring mission in Aceh ......................................................................................................... 17 11.X.2005
12800/05 (Presse 250) 4
EN
PARTICIPANTS
The Governments of the Member States and the European Commission were represented as follows:
Belgium:
Mr Jan DE BOCK Permanent Representative
Czech Republic:
Mr Tomás PROUZA Deputy Minister for Finance
Denmark:
Mr Thor PEDERSEN Minister for Finance
Germany:
Mr Wilhelm SCHÖNFELDER Permanent Representative
Estonia:
Mr Aivar SÕERD Minister for Finance
Greece:
Mr Georgios ALOGOSKOUFIS Minister for Economic Affairs and Finance Spain:
Mr Pedro SOLBES MIRA Second Deputy Prime Minister and Minister for Economic Affairs and Finance
France:
Mr Pierre SELLAL Permanent Representative
Ireland:
Mr Bobby McDONAGH Permanent Representative
Italy:
Mr Rocco Antonio CANGELOSI Permanent Representative Cyprus:
Mr Michalis SARRIS Minister for Finance
Latvia:
Mr Oskars SPURDZIhS Minister for Finance
Lithuania:
Mr Zigmantas BALÈYTIS Minister for Finance
Luxembourg:
Ms Martine SCHOMMER Permanent Representative
Hungary:
Mr János VERES Minister for Finance
Malta:
Mr Tonio FENECH Parliamentary Secretary, Ministry of Finance Netherlands:
Mr Gerrit ZALM Deputy Prime Minister, Minister for Finance Austria:
Mr Karl-Heinz GRASSER Federal Minister for Finance Poland:
Mr Miroslaw GRONICKI Minister for Finance
Portugal:
Mr Fernando TEIXEIRA DOS SANTOS Minister for Finance and Public Administration Slovenia:
Mr iga LAVRIÈ State Secretary, Ministry of Finance Slovakia:
Mr Ivan MIKLOS Deputy Prime Minister, Minister for Finance 11.X.2005
12800/05 (Presse 250) 5
EN
Finland:
Mr Eero HEINÄLUOMA Deputy Prime Minister, Minister for Finance Sweden:
Mr Pär NUDER Minister for Finance
United Kingdom:
Mr Gordon BROWN Chancellor of the Exchequer
Ms Dawn PRIMAROLO Paymaster General
Commission:
Mr Joaquin ALMUNIA Member
Ms Neelie KROES Member
Mr Charlie McCREEVY Member
Other participants:
Mr Jean-Claude TRICHET President of the European Central Bank Mr Philippe MAYSTADT President of the European Investment Bank Mr Caio Kai KOCH-WESER President of the Economic and Financial Committee Mr Joe GRICE Chairman of the Economic Policy Committee The Governments of the Acceding States were represented as follows: Bulgaria:
Mr Plamen ORESHARSKI Minister for Finance
Romania:
Mr Sebastian VLADESCU Minister for Public Finance
11.X.2005
12800/05 (Presse 250) 6
EN
ITEMS DEBATED
EARTHQUAKE IN SOUTH ASIA
The Council took note of the following statement made by the presidency: "We are all deeply shocked by the terrible earthquake which hit South Asia on Saturday morning. The initial response from the EU was immediate. The Commission announced an immediate humanitarian aid package on Sunday, as soon as the tragic scale of this earthquake became apparent. It is now examining urgently what it can provide for the post-emergency phase. In addition, Member State governments have provided additional aid and support including specialist rescue teams.
We as President, and on behalf of this Council, would like to send a message from this meeting, not only of sympathy, solidarity, and support to the people and peoples affected, but of a willingness as a Community and as national governments that we stand ready to provide additional assistance as required to alleviate the consequences of this humanitarian disaster and to assist in the reconstruction. And we call on the World Bank, IMF, and UN Agencies to do all they can to assist with aid and reconstruction."
11.X.2005
12800/05 (Presse 250) 7
EN
EXCESSIVE DEFICIT PROCEDURE

- Hungary: follow-up to Council recommendation under article 104(7) The Council took note of the situation regarding the Hungarian government's budget deficit and of the Commission's intention to propose the next step in the EU's excessive deficit procedure. The Commission considers that Hungary has failed to comply with successive recommendations issued by the Council, under article 104(7) of the treaty, on the measures to be taken in order to bring its government deficit below the reference value of 3% of gross domestic product (GDP). It therefore intends to bring forward a recommendation enabling the Council to make a decision establishing non-compliance, under article 104(8) of the treaty, at its meeting on 8 November. The Council already issued recommendations under article 104(7), in July 2004 and March 2005, as well as a decision under article 104(8) in January 2005 establishing that effective action had not yet been taken in response to the first of these recommendations. 11.X.2005
12800/05 (Presse 250) 8
EN
ECONOMIC REGENERATION IN THE WEST BANK AND THE GAZA STRIP The Council was briefed by the Commission and the European Investment Bank (EIB) on progress made in preparing EU support to economic regeneration in the West Bank and the Gaza Strip, in cooperation with other countries and institutions working in the region, following Israel's partial withdrawal from the territories.
The president of the Council, Gordon Brown, announced that he would shortly visit the region, accompanied by commissioner Joaquín Almunia and EIB president Philippe Maystadt. 11.X.2005
12800/05 (Presse 250) 9
EN
DIALOGUE WITH THE UNITED STATES
The Council assessed the desirability of greater involvement of the Economic and Financial Affairs Council (Ecofin) in the preparation of EU-United States summits as regards economic and financial issues, and in dialogue with the US authorities on a number of issues related to regulatory cooperation, financial services and innovation.
The President concluded that the Council welcomed the initiative of the United Kingdom presidency in co-operation with the future Austrian and Finnish presidencies, underlined the importance of the aim of promoting an ongoing involvement of the Ecofin Council in these processes and noted the conclusions of the three presidencies' paper, as follows:
* It welcomed work undertaken by the Commission, the General Affairs and External Relations Council and EU-US working groups, recognising the need for member states and the Commission to work closely together.

* In areas where there are prospective gains for the EU, existing processes could be enhanced and complemented by discussion at Ecofin.

* It welcomed work being done on regulatory co-operation and emphasised the need to maximise the opportunities this brings for boosting the transatlantic economic relationship.
* The Council looks forward to the Commission informing finance ministers of progress on economic co-operation in the run-up to the 2006 EU-US summit, including on regulatory cooperation, stimulating open and competitive financial markets and innovation. 11.X.2005
12800/05 (Presse 250) 10
EN
COMPETITION POLICY - ENQUIRIES IN FINANCIAL SERVICES AND ENERGY The Council was briefed by the Commission on its enquiries launched on 13 June into possible obstacles to competition in the retail banking (including payment card) and business insurance industries as well as in the gas and electricity markets. The enquiries1 are aimed at:

* identifying possible restrictive practices and abuses of dominant market positions that could be addressed, either by the Commission or by national competition authorities, under articles 81 or 82 of the treaty;

* enhancing transparency in relation to price-setting and other commercial practices so as to enable consumers to make more informed choices, thus increasing competitive constraints on the behaviour of service providers.
The deadline for replies to the Commission's request for information was in mid-September and the enquiries have now moved on to the subsequent phase. The Council looks forward to the Commission informing finance ministers on developments.
1 http://europa.eu.int/comm/competition/antitrust/others/sector_inquiries/financial_services/communication_en.pdf 11.X.2005
12800/05 (Presse 250) 11
EN
FINANCIAL SERVICES - FOLLOW-UP TO THE COMMISSION'S GREEN PAPER The Council was briefed by the Commission on the follow-up to its financial services action plan and adopted the following conclusions:
"The Council:

- WELCOMES the outline of the Commission's financial services policy for 2005-2010 as set out in the Commission's Green Paper;

- NOTES that the Green Paper is broadly in line with its conclusions of 2 June and 16 November 2004;

- REAFFIRMS that full and consistent implementation and effective enforcement of all FSAP measures must now have priority; and STRESSES that Member States must play their role by transposing and implementing the agreed FSAP texts on time and EU regulators and supervisors must be given the necessary supervisory powers and assist in ensuring consistent day-to-day application and supervision of the rules;

- EMPHASISES that the momentum should be maintained for finalising important initiatives under way, such as the preparation of the Solvency II project in the insurance sector; and WELCOMES the approach taken by the Commission to further integration based on systematic analysis of remaining obstacles and of the impact of tackling those obstacles on a case-by-case basis;

- EMPHASISES the importance of the "better regulation" approach to be applied by the Commission to any new initiatives, including open and transparent consultation at all levels with an appropriate involvement also of consumers, thorough ex-ante economic impact assessments and ex-post evaluations, all based on a clear and transparent methodology;
- UNDERLINES that Member States should also contribute to making better regulation work to the best of their abilities and UNDERTAKES to carry out impact assessments on substantive Council amendments to legislative proposals;

- STRESSES that an integrated EU market for financial services poses further challenges for financial supervision in Europe, especially as regards supervision of cross-border groups and entities, and therefore ENCOURAGES the ongoing work of the FSC on enhancing the EU's supervisory arrangements, and in particular, LOOKS FORWARD to its assessment of further policy priorities in developing financial supervision in the EU; 11.X.2005
12800/05 (Presse 250) 12
EN

- WELCOMES the ongoing efforts by the Commission, the FSC and the EFC in the area of financial stability and crisis management, and INVITES the Commission to assess obstacles to information exchange between EU supervisory authorities, central banks and finance ministries; as well as current arrangements for deposit guarantee schemes;
- SHARES the Commission's view that synergies with other policy areas, in particular competition and consumer policies are expected to increase in the future;
- AGREES with the Commission on the importance of the EU's global competitiveness, and thus INVITES the Commission to further develop the on-going Regulatory Dialogue with the US and other important trading partners by further enhancing its pro-active and forward-looking nature; and

- UNDERLINES the intention, at its December meeting, to further assess the Commission's post- FSAP strategy in light of the Commission's White Paper." 11.X.2005
12800/05 (Presse 250) 13
EN
FINANCIAL MARKETS AND SERVICES : BETTER REGULATION The Council was briefed by the chairmen of the Committee of European securities regulators (CESR), the Committee of European insurance and occupational pensions supervisors (CEIOPS) and the Committee of European banking supervisors (CEBS) on work undertaken to improve the quality of European financial legislation and cooperation between supervisors, and urged them to continue their work.
The CESR, CEIOPS and CEBS are considering practical steps to encourage national regulators to work together to improve their effectiveness in reducing regulatory burdens as European financial services markets become more integrated.
Implementation and supervision also feature prominently in the Commission's green paper on financial services policy for the 2005-2010 period.
*

* *
Over lunch, ministers were briefed on the results of the Eurogroup meeting held on 10 October and on recent meetings in Washington of the G7 and the IMF. They discussed the financial consequences of the reform of the EU's common market organisation in the sugar sector and were briefed on the outcome of informal discussions amongst member state experts on the consequences of Court of Justice rulings on direct taxation. 11.X.2005
12800/05 (Presse 250) 14
EN
OTHER ITEMS APPROVED
ECONOMIC AND FINANCIAL AFFAIRS
New capital adequacy requirements for banks and investment firms The Council noted agreement on two draft directives introducing new capital adequacy requirements for banks and investment firms, accepting all amendments voted by the European Parliament in first reading. (11545/04 and 12831/05) The two directives can be now adopted without discussion at a forthcoming Council meeting, once the texts have been finalised. The new requirements are intended to contribute to financial stability and strengthen confidence in the financial system by fostering enhanced risk management by financial institutions. Part of the EU's financial services action plan, they are aimed at strengthening the competitiveness of the European economy by lowering capital costs for companies. The new requirements follow international guidelines established in June 2004 ('Basel II' agreement)1 by the Basel committee on banking supervision, which formulates supervisory standards and guidelines and recommends best practice for banking supervisory authorities. For further details, see press release 13166/05.

1 The Basel committee is composed of members from Belgium, Canada, France, Germany, Italy, Japan, Luxembourg, the Netherlands, Spain, Sweden, Switzerland, the United Kingdom and the United States. Member countries are represented by their central banks and by their authorities responsible for the prudential supervision of banking business.

11.X.2005

12800/05 (Presse 250) 15
EN
Rules aimed at improving reliability of company accounts The Council noted agreement on a draft directive updating rules on the audit of company accounts, accepting all amendments voted by the European Parliament in first reading. The directive can now be adopted without discussion at a forthcoming Council meeting, once the text has been finalised. (7677/04 and 12617/05)
The directive is aimed at improving the reliability of company financial statements by establishing minimum requirements for statutory audit of annual accounts and consolidated accounts. It broadens the scope of application of EU legislation (directive 84/253/EEC) by specifying the duties of statutory auditors, their independence and ethics, by introducing requirements for external quality assurance, ensuring better public oversight over the audit profession and improving cooperation between oversight bodies in the EU. It also amends existing directives 78/660/EEC and
83/349/EEC on accounting.
For further details, see press release 13165/05.
Medium-term financial assistance to member states - Council conclusions The Council adopted the following conclusions:
"On 18 February 2002, the Council established a Community facility for providing medium-term financial assistance to Member States, which have not adopted the euro and are experiencing, or are threatened with, difficulties in their balance of payments on current or capital accounts (Council Regulation (EC) No 332/2002).
As three years have elapsed since the adoption of the Regulation, the Commission has prepared a Communication (doc. 11589/05 ECOFIN 259 - COM(2005) 331 final) as a report to the Council on the functioning of the facility. The EFC delivered its opinion on 30 September.
11.X.2005

12800/05 (Presse 250) 16
EN
The Council carefully examined the Commission report and the opinion by the EFC. The Council:
* is of the view that the principle and underlying rationale of the facility remain valid although the facility has not been activated since the adoption of the Regulation.
* deems the current ceiling at a sufficiently high level to satisfy the simultaneous needs of several Member States.

* welcomes the updates to the Commission's European Medium-Term Note (EMTN) programme as the framework agreement on the issuance of bonds. The Council is therefore of the view that no change to the facility is warranted at this stage." Stability and growth pact - Code of conduct - Council conclusions The Council adopted the following conclusions:
"The Council approved a Code of Conduct relating to Specifications on the implementation of the Stability and Growth Pact and Guidelines on the content and format of the Stability and Convergence programmes.
This Code of Conduct updates and replaces the Opinion of the Economic and Financial Committee on the content and format of the Stability and Convergence Programmes, endorsed by the Council on 10 July 2001. It has been updated in line with the 20 March 2005 (Ecofin) Council report on "Improving the implementation of the Stability and Growth Pact", as endorsed by the 22-23 March
2005 European Council, and the two Regulations, No 1055/05 and No 1056/05, amending Regulations No 1466/97 and No 1467/97, which were adopted on 27 June 2005 and complemented the Pact.
The Council confirms that the Stability and Growth Pact is an essential part of the macroeconomic framework of the Economic and Monetary Union. The Council considers that this revised Code of Conduct contains the guidelines for a consistent and even-handed implementation of the Stability and Growth Pact and for the content and format of the stability and convergence programmes."
11.X.2005

12800/05 (Presse 250) 17
EN
TAXATION
VAT - Germany and the Netherlands - Cross-border bridge The Council adopted a decision authorising Germany and the Netherlands to apply a measure derogating from EU rules on turnover taxes in order to simplify the procedure for charging tax on the construction of a cross-border bridge (12036/05). For taxation purposes, the bridge, over the Rodebach between Selfkant (north of Millen, Germany) and Echt-Susteren (north of Sittard, the Netherlands), will be considered as being on German territory for supplies of goods and services, for intra-Community acquisitions and for imports of goods intended for its construction, repair and renovation. The Netherlands and German authorities requested the introduction of this measure in October
2004.
EXTERNAL RELATIONS
Indonesia - EU monitoring mission in Aceh
The Council approved the conclusion of agreements with Brunei, Singapore, Malaysia, Thailand and the Philippines on the participation of those states in the EU monitoring mission in Aceh (Indonesia).

vrijdag 21 oktober 2005