22 January 2008

ECOFIN meeting

Main results of the Council

The Council adopted conclusions on the single euro payments area, an initiative to be launched on 28 January with the aim of creating by 2010 a single integrated and competitive market for payments made in euros.

It reviewed certain issues to be submitted to the spring meeting of the European Council, in particular with regard to the Lisbon strategy for growth and jobs for which a new three-year cycle will be launched, and adopting conclusions on a current review of the EU's single market.

Council press release

Presidency work programme

 (doc. 16495/2/07 REV2). The Council held an exchange of views on the presidency work programme. Ecofin Council will focus on:

• financial stability issues, namely the EU’s policy response to recent developments in financial markets, the follow-up of the current review of the Lamfalussy regulatory process and the enhancement of the EU’s arrangements for financial crisis management;

• the launch of a new three-year cycle of economic reforms under the EU’s Lisbon strategy for growth and jobs.

The Council will also take forward work started last year in the light of common objectives and priorities set by the German, Portuguese and Slovenian presidencies. These are:

• ensuring efficient and effective management of economic policy;

• taking further steps towards completion of the internal market, in particular with regard to financial services and taxation;

• improving the quality of public finances.

Presidency ECOFIN work programme

At the spring meeting in March, ECOFIN will discuss the report on the financial markets situation. The presidency will strive towards transparency of the situation in the financial sector, where this is the key element to maintain confidence in financial markets. During Slovenia's Presidency ECOFIN will also focus on improving evaluation and risk management standards, as well as on the work of ratings agencies.

Financial stability issues will also be dealt with at the informal ECOFIN meeting in April this year, where the ministers will discuss the future role of the Lamfalussy supervisory authorities and sign a new Memorandum of Understanding between ministers for finance and supervisory and regulatory authorities in the field of crisis management in the EU, with a view to increase the readiness of the European Union to manage eventual cross-border crises.

Slovenian Presidency press release

The Lisbon strategy for growth and jobs: the next three-year cycle

The Council held a policy debate on the next three-year cycle of the EU's Lisbon strategy for growth and jobs (2008-10), to be launched by the European Council at its meeting on 13 and 14 March.

Communication from the Commission

Companion document

Assessment of the National Reform Programmes

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Key issues paper on economic and financial affairs

The Council held a policy debate on the main messages to be conveyed to the spring meeting of the European Council (13 and 14 March) as regards economic and financial affairs, on the basis of a draft key issues paper prepared by the presidency. It is expected to approve the paper at its meeting on 12 February.

The draft key issues paper examines among others the implementation in member states and actions at Community level, and the efficiency and stability of financial markets.

Single market review - Council conclusions

The Council adopted a conclusion on the single market review to be forwarded to the spring meeting of the European Council (13 and 14 March).

In particular, the Council BROADLY SUPPORTS the initiatives identified by the Commission in the area of retail financial services, and in particular

• ENCOURAGES the development, by the banking sector, of a set of common rules on bank accounts, to facilitate bank switching and access by non-residents, to the benefit of all consumers, bearing in mind the positive effects expected from increased customer mobility on competition;

• SUPPORTS the Commission in its intentions to look into the obstacles to broader product availability, in particular assessing the possibilities of a 28th regime and further use of competition policy tools;

• STRESSES the importance of eliminating barriers to supply and demand for retail products on a cross-border basis and of examining the preconditions for access to, and availability of, credit data in promoting competitive retail markets

• LOOKS FORWARD to the Commission communication on the need for a more coherent approach to product transparency and distribution requirements for "competing" retail investment products;

• SUPPORTS examination by the Commission of possible improvements to financial services redress mechanisms;

• And ENCOURAGES greater and continued engagement with consumers so as to try out, where relevant, the proposed measures with consumer testing panels, and/or discuss them with expert groups gathering professionals and users.

• INVITES the FSC and the EFC to examine the forthcoming detailed initiatives by the Commission. In the first half of 2008, and in addition to the consideration of progress on the Single Euro Payment Area (SEPA), the Council will examine in particular the Commission White Paper on the mortgage credit sector for consumers and the communication by the Commission on financial education, setting out suggestions for the delivery of financial education, recognizing that financial education is primarily a matter for Member States.

Conclusions on the Single Market Review

Single Euro Payments Area - Council conclusions

The Council adopted the following conclusions on the “single euro payments area” initiative, which will be officially launched on 28 January.

"The Council

• EMPHASISES its support for the aim of the Single Euro Payments Area (SEPA): to achieve an integrated market for payment services in euro which is subject to effective competition and where there is no distinction between cross-border and national payments in euro within the EU;

• WELCOMES the substantial progress achieved by industry to achieve the SEPA;

• RECOGNISES that the SEPA project has now moved from the preparatory to the operational stage and therefore calls upon industry to redouble its efforts and complete work, in particular in relation to the outstanding standards required in the cards market and in the customer to bank and bank to customer space;

• ENCOURAGES industry to develop attractive SEPA payment products and market them actively so that there is a natural momentum for customers to migrate from existing payment instruments to the new SEPA payment products in a market driven process;

• CALLS for rapid and smooth SEPA migration so that dual payment processing costs are kept to the minimum; and highlights the need for timely and complete transposition and implementation of the Payment Services Directive at national level to facilitate the migration process;

• RECOGNISES the importance of finding a workable solution to ensure the continued legal validity of existing direct debit mandates, where needed;

• ACKNOWLEDGES the important catalytic role that can be played by public authorities in helping drive forward the migration process;

• ENCOURAGES public authorities to be early adopters of SEPA payment instruments subject to the principle that there should be no deterioration as compared to the existing national characteristics for product performance and price, given the positive contribution SEPA can make to the modernisation of public administration and the e-Government Action Plan as well as the substantial benefits of SEPA to the wider European economy, including through valueadded- services such as e-invoicing;

• INVITES Finance Ministries of Member States in cooperation with national Central Banks to continue monitoring progress on SEPA at national level, in particular, as regards the adoption of SEPA by public authorities; and INVITES the Commission in cooperation with the ECB to provide an annual progress report on the state of migration, including where relevant the pricing of SEPA instruments and the enhancement of competition within the SEPA area as well as other SEPA related developments at the end of each year until the successful migration of a critical mass of payment instruments has been achieved and at the end 2008, 2009 and 2010 in any event."

Council conclusions on Single Euro Payments Area

Background note

© Graham Bishop