Date of release : 03-06-2005

Policy area : Economic and Financial Affairs Economic and Financial Affairs

Event : Economic and Financial Affairs Council

The Ministers for Finance and the Economy of the EU Member States will meet in Luxembourg on 7 June 2005 for a meeting of the "Economic and Financial Affairs" Council.

On 6 June, the Finance Ministers of the Eurozone member countries will meet in the context of the Eurogroup.

Both meetings will be chaired by Jean-Claude Juncker, Prime Minister, current President of the "Economic and Financial Affairs" Council and President of the Eurogroup.

Jeannot Krecké, Minister of the Economy and Foreign Trade, will represent Luxembourg in both meetings.

The Eurogroup will make its traditional overview of European and international economic issues, primarily as preparation for the meeting of the G7 finance ministers, to be held in London on 11 June 2005.

Ministers will review the 2005 budget developments and budget policies for 2006. This review is in response to the recommendations of the "Economic and Financial Affairs" Council to the European Council, adopted on 20 March 2005, on improving the implementation of the Stability and Growth Pact. According to these recommendations, the mid-term budget review should be a strategic event that could have an impact on budget planning work now in progress in the EU Member States.

The "Economic and Financial Affairs" Council of Tuesday, 7 June 2005, will be asked to adopt its report on the 2005 Broad Economic Policy Guidelines to be submitted to the European Council of 16 and 17 June 2005 in Brussels.

Once again, in the context of preparation of the European Council, Ministers will have an exchange of views on the financial perspectives for the period 2007- 2013.

The Ministers for Finance and the Economy will give their opinion of the repeal of the procedure for the excessive deficit in regards to the Netherlands.

As for reduced VAT rates, the Council will discuss a compromise proposal from the Luxembourg presidency.

In regards to statistics, the Ministers will monitor the discussions of the "Economic and Financial Affairs" Council, especially on the subject of a draft regulation on the quality of statistical data in the context of the excessive deficits procedure and the code of conduct on the independence of Eurostat and the national statistics institutes.

The Ministers will continue their exchange of views on financing for public development aid. At the informal Ecofin of 13 and 14 May 2005 in Luxembourg, the Ministers reached an agreement to propose voluntary participation for airline tickets, the revenue from which would be used entirely for development aid.

The Council will seek a policy agreement on the proposed directive on money laundering and the financing of terrorism.

Other discussions will include the status of the taxation of savings income dossier and in particular the adoption of equivalent measures by the third countries and a policy agreement on the interest and royalty payments directive.

The Council will also give its opinion on a proposal from the European Commission regarding a new common reverse side of euro coins, taking the enlargement of the European Union into account.