Eamon Ryan (Dublin South, Green Party)
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Question 54: To ask the Minister for Finance if he will report on the ECOFIN meeting of 14 March 2006. [12414/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The Minister of State, Deputy Brian Lenihan, represented Ireland at the ECOFIN Council meeting in Brussels on 14 March 2006. The meeting was attended by representatives of all 25 EU member states and of Bulgaria and Romania. The preparation of the spring European Council meeting of Heads of State or Government of 23-24 March was discussed. Among the issues dealt with were the key issues paper, the European Investment Bank's contribution to promoting growth and employment, better regulation and the joint report on social protection and social inclusion, The Council agreed this key issues paper as a contribution to the European Council meeting. The paper concentrates on implementation of the strategy for growth and jobs laid down by the European Council at Lisbon in 2000 and relaunched in 2005.

The Council adopted a report on proposals by the European Investment Bank, EIB, for reinforcing the contribution by the EIB and the European Investment Fund to promoting growth and employment in the EU and forwarded it as a contribution to the European Council meeting.

The Council held an exchange of views on progress under the EU's better regulation initiative, which is aimed at reducing unnecessary regulatory burdens for businesses, voluntary groups and citizens and at increasing competitiveness and productivity by simplifying legislation, improving transparency and cutting down on red tape. It took note of progress made by the Commission and of a note from the Presidency on reducing the administrative costs of Community programmes and measures and on experiences at national level.

The Council welcomed the adoption by the Employment, Social Policy, Health and Consumer Affairs Council on 10 March of a joint Council and Commission report on social inclusion and social protection in pensions, health care and long-term care. The report was submitted to the European Council meeting.

The Council adopted opinions on updated stability programmes presented by Germany, Greece, Spain, France, Italy, Ireland, the Netherlands and Portugal. The Irish programme was particularly well received. The Council adopted opinions on updated convergence programmes presented by Cyprus, Lithuania, Malta, Poland and the United Kingdom.

The Council adopted a decision, under article 104(9) of the EU Treaty, giving notice to Germany to bring its government deficit below 3% of gross domestic product, GDP, the threshold provided for by the treaty, as rapidly as possible and by 2007 at the latest. Germany's deficit amounted to 3.3% of GDP in 2005, according to the Commission on the basis of provisional data provided by Germany on 24 February 2006.

The Council discussed a communication from the Commission assessing the action taken by Italy in response to the Council recommendation of 28 July 2005 with a view to bringing to an end the situation of an excessive government deficit. The Council shared the view of the Commission that the measures taken by the Italian authorities following the Council's recommendation would, provided they were fully and effectively implemented, ensure adequate progress in 2006 towards the correction of the excessive deficit within the time limit set in the recommendation.

The Council approved by qualified majority a recommendation, to be forwarded to the European Parliament, on the discharge to be given to the Commission for implementation of the EU's general budget for 2004. The Netherlands delegation voted against. The Council adopted a number of conclusions, which will serve as the basis for discussions with the European Parliament and the Commission on preparation of the EU's general budget for 2007. The Council adopted, without discussion, a number of conclusions on the follow-up to the discharge given to the Commission for implementation of the 2003 budget.

In the margins of the ECOFIN, a number of meetings were held. Representatives of the Council, the Commission and the European Central Bank met representatives of the European Trade Union Federation and Employers Confederation for the 14th macroeconomic dialogue meeting at political level. The meeting examined the economic situation and outlook and public policy, in particular as regards the challenges of globalisation.

The Presidency troika — representatives of Austria, Finland and Germany — held a videoconference with representatives of the European Parliament to discuss, in particular, the EU's broad economic policy guidelines, BEPGs, for the 2004-06 period. The Commission decided this year not to propose updating the BEPGs, so the existing guidelines remain valid.

Over breakfast on the morning of the 14 March, Ministers discussed the economic policy challenges of the EU's strategy for growth and jobs laid down by the European Council at Lisbon in 2000 and re-launched last year, on the basis of a paper prepared by Bruegel, a Brussels-based think-tank, and presented by Mr. Jean Pisani-Ferry and Mr. Andre Sapir.

At lunch, Ministers were briefed on the Eurogroup meeting held on 13 March and on a report on preparation of a new external lending mandate for the European Investment Bank and discussed issues related to energy markets on the basis of a green paper from the Commission. It is evident from the above list that the Council completed a very full programme of work at this meeting.