04 November 2008

ECOFIN meeting 4 November

ECOFIN focused their discussions on the efforts to respond to the financial crisis, citing the coordination of national action to support the financial sector, the granting of assistance to EU countries affected by the crisis and the common messages that the EU should present at the debate on overhauling the international financial system. The Council also adopted a Decision on the grant of a loan to Hungary amounting to € 6.5 billion to help it to deal with the financial crisis and agreed on the principle of raising the current ceiling of Community financial aid from 12 to 25 billion euros.

Ministers expressed their desire to respond to the economic slowdown as confirmed by the autumn economic forecasts. They emphasised the role of budgetary policy to mitigate the slowdown through the use of automatic stabilisers in line with the Stability and Growth Pact.

The Commission indicated the flexibilities provided for since the revision in 2005. Ms Lagarde asked the European Investment Bank to submit proposals for boosting European growth at the next ECOFIN Council on 2 December. The EIB should develop targeted sectoral actions, in particular for the automobile sector.

Ministers debated the common messages to send to the European Heads of State and Government who are meeting on 7 November to discuss the overhaul of the international financial system ahead of the international summit in Washington on 15 November.

They agree on the following principles: once again placing the principles of responsibility and transparency at the heart of the system, ensuring appropriate regulation and monitoring; giving the IMF a primary role in ensuring the stability of the international financial system; and involving emerging and developing countries in this process.

Council decision on Hungary

ECOFIN results (French)

ECOFIN results (English)

Focus paper

Agenda

Preparation of the Eurogroup

Background note

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