Economic and Financial Affairs Council – Presidency Priorities

The Portuguese Presidency of the ECOFIN Council will pursue the three key objectives defined together with the German Presidency and the future Slovenian Presidency:

To ensure the efficient and effective management of economic policy
To improve the quality of public finances in the EU
To Take further steps towards completing the Internal European Market, in particular with respect to financial services and taxation

In order to achieve the referred strategic objectives, the Portuguese Presidency has defined the following main priorities for the second half of 2007:

Economic Policy oriented towards Growth and Stability

Quality of Public Finances: The Portuguese Presidency will focus primarily on the quality of public finances, giving priority to the role that modern and efficient public administrations play in improving the business environment thus contributing to enhance economic growth and citizen’s welfare.

Lisbon Strategy: The current favourable economic climate should contribute to accelerate the implementation of structural reforms in line with the Lisbon Strategy. In this area, the Portuguese Presidency will devote particular attention to the multilateral surveillance process, embodied in the evaluation of National Reform Programmes, identifying progresses on the reorientation of policies with the aim to increase productivity and growth. At the same time the debate on the new three-year cycle of the Lisbon Strategy will be launched.

Stability and Growth Pact and the enlargement of the Euro area: The Presidency will also promote the strict application of the Stability and Growth Pact, as well as the necessary procedures to the enlargement of the Euro area, according to the criteria set out in the Treaty. In this regard the July Ecofin Council will approve the legislative acts that will enable Cyprus and Malta to adopt the euro as from 1 January 2008.

Better Regulation to improve competitiveness

A legislative and regulatory environment which enhances economic activity is a key vector to achieve the goals of the Lisbon Strategy, contributing to improve productivity, competitiveness, competition and innovation. In that way, it is particularly relevant the reduction of the administrative burden for companies, especially for SME’s, through the simplification of rules, the modernization of current legislation and the screening of new legislative initiatives in the light of cost-benefit analysis.

Stepping forward towards completing the Internal Market

Financial Markets Integration: The Portuguese Presidency aims at accomplish significant progresses in the European strategy for financial services, as integrated and efficient financial markets are essential to strengthen economies competitiveness.
Therefore, the Presidency will work towards an agreement concerning the revision of the EU solvency regime in the insurance sector (Solvency II), and it will also promote the deepening of the financial stability framework and the efficiency of the regulatory and supervisory structures (Lamfalussy Process). Moreover the enhancement of market integration in the fields of clearing and settlement of securities transactions and of retail financial services as well as the development of the venture capital industry will deserve the Council’s attention. The Presidency will support the development of regulatory dialogue with the main partners at global level.

Taxation: The Portuguese Presidency will promote the definition of an EU strategy to fight against tax fraud, phenomenon that jeopardizes competition rules at the European and national levels deteriorating the quality of public finances and endangering the achievement of the Lisbon Strategy goals.
The Presidency attaches particular importance to the contribution of tax policies to tackle climate change and to achieve the EU targets on reduction of greenhouse-gases emission, focusing with this regard on car taxation.
The Presidency will also pursue, among others, the work aiming to the adoption of the VAT package and on the application of reduced VAT rates.

EU Budget

Concerning the EU Budget the main priority of the Portuguese Presidency will be to assure the agreement with the European Parliament leading to the approval of the 2008 Budget, thus allowing for the financing of European policies and priorities, within the framework of the Inter-Institutional agreement on budgetary discipline and sound management.