Economic and Financial Affairs Council (ECOFIN)
- On: 07.10.2008
- In: Luxembourg
The twenty-seven EU economy and finance ministers will meet with the European Commission and European Central Bank for the ECOFIN Council in Luxembourg on 7 October. It will be preceded by a meeting of the Eurogroup on 6 October.
The ECOFIN Council will be an opportunity to prepare the European Council of 15 and 16 October. The ministers should submit to the Heads of State and Government their analyses and proposals on how to respond to the financial crisis, rising oil prices and the economic slowdown. They will build on the results of the discussions held at the informal meeting of ministers and central bank governors in Nice on 12 and 13 September, as well as the Commission's and Presidency's work further to the conclusions of the European Council in June, and elaborate these proposals in the light of the latest economic and financial developments. The ministers will aim to reach conclusions on improving the governance of the Economic and Monetary Union.
The ECOFIN Council will examine best practices concerning the remuneration of company managers in Europe, particularly the definition of remuneration arrangements that could prevent excessive risk-taking in the financial sector.
Besides these issues directly linked to the economic and financial situation, the ministers will continue to discuss the main tax and financial harmonisation projects underway:
- on financial services, discussions are scheduled on the proposed "Solvency II" directive on the solvency requirements for insurance companies. This proposed directive aims to completely overhaul the prudential framework for the insurance sector;
- as regards taxation, the ministers will examine the setting up of Eurofisc, a cooperation network between Member States to combat VAT fraud. The ministers should also discuss the proposals for amending the VAT Directive and the Regulation on administrative cooperation with a view to combating VAT fraud. Moreover, as agreed on 13 September at the informal meeting of finance ministers in Nice, the Commission will present a report setting out the advantages and disadvantages of applying reduced VAT rates, presenting both the optimal economic conditions for applying reduced VAT rates and the budgetary impact for Member States.
Lastly, the Presidency will review the preparations for the IMF and World Bank Annual Meetings, aimed in particular at enabling ministers to discuss the international financing arrangements for combatting climate change.
- Updated: 27.10.2008
