Resultaten Raad ECOFIN, 2 December 2008 (en)

Main results of the ECOFIN Council: Common approach of the Council in favour of a concerted European Recovery Plan and advances made on a number of points with regard to bolstering the stability and solidity of the European financial sector and taxation.

Under the presidency of Christine Lagarde, the French Minister for the Economy, Industry and Employment, the Council indicated its support in principle to the Commission’s communication “For a European Recovery Plan” of 26 November last, and recommended that the Heads of State and Government meeting on 11 and 12 December take significant action to shore up the economy by up to 1.5% of European GDP. To respond to the economic slowdown, the Member States will be able to prioritise the measures that will have a quicker impact on the EU economy and are most adapted to the specific requirements of each country. The Council reiterated that the Stability and Growth Pact - with various flexibility mechanisms - will serve as the general framework for the budgetary implications of the economic support measures. The European Investment Back (EIB) will also be involved in providing economic support.

Concerning the financial crisis, the Council invited the Commission to publish guidelines on national support schemes for banks ahead of the European Council, by working closely with the European Central Bank (ECB). The ministers approved four key draft directives for financial stability, namely the strengthening of rules on bank deposit guarantee schemes; the strengthening of rules on own funds requirements for banks; the modernising of rules governing undertakings for collective investment in transferable securities (UCITS); and the continuing integration of the insurance sector. Negotiations begun with the European Parliament will continue on this basis. They also noted the correct implementation of the roadmaps adopted by the Council regarding financial stability. Due to these advances for the European financial sector, the French Presidency has met its ambitious legislative targets to bolster the stability and solidity of the European financial sector. The Council also agreed to continue closely cooperating at European level to ensure the proper preparation of future international summits following the Washington Summit on 15 November, in order for Europe to continue leading the way in effectively reforming the global financial system.

In the area of direct taxation, the Council approved a new working programme for the Code of Conduct, giving fresh impetus to combating tax-dumping practices in Europe. It also adopted a resolution on the coordination of direct tax systems with regard to exit taxes. In terms of taxation of savings, the Council adopted conclusions welcoming the Commission’s suggestions with a view to extending the scope of the directive to new persons and new products, recalling the transitional character of the system of withholding tax at the source and emphasising the importance of talks with third countries on this subject, which have become essential in the context of the increased fight against international tax evasion and fraud.

With regard to indirect taxation, the Council took note of a report from the Presidency on the progress made in examining the draft directive on VAT on financial and insurance services. On the issue of reduced rates of VAT, the Presidency emphasised the importance of the work carried out in the last six months. It noted that a large majority of Member States were now in favour of this project. The Commission pointed out its positive effects on employment and the lack of distortion of the internal market. This subject, which is included in the Commission’s recovery plan, should be examined by the European Council on 11 and 12 December next.