Date of release : 15-02-2005

Policy area : Economic and Financial Affairs Economic and Financial Affairs

Event : Economic and Financial Affairs Council

The Prime Minister and Finance Minister, Jean-Claude Juncker, will preside over the meetings of the Eurogroup and the "Economic and Financial Affairs" Council to be held in Brussels on 16 and 17 February 2005.

The Minister for the Economy and External Trade, Jeannot Krecké, will represent the Luxembourg Government there.

The Finance Ministers from the 12 Member States of the eurozone, brought together within the Eurogroup, as well as the Ministers for Finance and the Economy from the 25 Member States of the "Economic and Financial Affairs" Council, will once again look into the examination of the Stability and Growth Pact. The first meeting on the 17 and 18 January brought about a consensus on three principal ideas, namely that the Treaty governing the Stability and Growth Pact would not be amended, that the European Commission’s right of initiative in this dossier would remain intact and that withdrawing entire expenditure categories from the application of the pact would not be a possibility. The Eurogroup and the "Economic and Financial Affairs" Council are expected to reach a political agreement during their meetings on 7 and 8 March 2005. This agreement should then be submitted to the heads of state and government at the European Council on 22 and 23 March 2005.

The "Economic and Financial Affairs" Council will also be called upon to take a decision on the basis of Article 104(9) of the Stability and Growth Pact with regard to Greece. The excessive deficit procedure could then be initiated against Greece, and it would be the first Member State to reach this stage in the procedure. Article 104(9) provides the Council with the option to invite the Member State concerned to undertake measures, within clearly established deadlines, to reduce its deficit.

The Council should adopt conclusions on a Commission communication on Member States’ use of statistics in the communication of their budgetary situations. The communication led to Council discussions during the second term of last year, within the context of revisions conducted by Greece on statistics it had previously provided for the analysis of its budgetary situation. It provides for a strengthening of the statistical framework at both Community and Member State level.

The Council will then analyse the current stability or convergence programmes of the following Member States: Belgium, Denmark, Estonia, Finland, France, Germany, Ireland, Italy, Malta, Poland and Slovakia.

Regarding the preparation of the European Council of 22 and 23 March 2005, the Council should adopt conclusions on a Commission report on the implementation of broad economic policy guidelines established for Member States for the period 2003-05, and will hold an orientation debate on the main issues tackled. The conclusions focus on two issues: improving competitivity and increasing employment.

At its meeting on 8 March 2005, the Council should approve a document on the main issues, which will then be submitted to the spring European Council on 22 and 23 March.

The Council will hold an orientation debate on the Commission’s report on the mid-term review of the economic reform strategy, which was approved in Lisbon in March 2000.

Over lunch, the ministers will be informed of the progress made on the setting up of a financing facility of the European Investment Bank for reconstruction in the areas affected by the earthquake and tidal wave that occurred in south-east Asia and the Indian Ocean on 26 December 2004.