ECOFIN: AUSTRIAN AND FINNISH PRESIDENCIES TO OUTLINE PROGRAMME TO MINISTERS.

Coordination of economic policies.

Determined to secure better results in terms of growth and employment, the two presidencies insist at length on interactions between the work of the Eurogroup, "which has specific responsibility for the economic and financial coherence of the euro-zone", and that of the EcoFin Council. The latter, responsible for operational monitoring of broad economic policy guidelines (BEPGs), should also focus on better coordination of economic policies between the various Council configurations. 2006 marking the first year of new economic governance, special attention will be granted to this theme with a view to enhancing application in the member states. In this regard, the two presidencies point out that "peer pressure" should act as an integral part of the mutual surveillance process in order to improve implementation of structural reforms in the member states. The two presidencies will therefore double up their efforts in encouraging member states to reform their pensions and healthcare systems" in order to improve the long-term sustainability of public finances".

Sustainability of public finances.

The second priority singled out by the two presidencies concerns implementation of the reformed stability and growth pact, including improvements in the accuracy of economic and budgetary statistics. Austria and Finland point out that the revised pact encourages budgetary consolidation in periods of high growth and insist that structural reforms will have a long-term positive impact and that excessive deficits should be imperatively and "promptly corrected".

Integration of financial markets.

The two presidencies will devote particular attention to implementation of the Financial Services Action Plan and will support Commission initiatives outlined in the White Paper published in December 2005 and covering the period 2005-2010. They also aim to advance negotiations on the new draft Directive on the creation of a genuine European payments system and on the review of the Security Deposits Directive. Austria and Finland will support efforts to combat funding of terrorist organisations in line with the Financial Action Group's recommendations on money-laundering.

Fiscal coordination.

Considering that European legislation on taxation may need to be partially reviewed in order to lift cross-border barriers distorting competition between member states, the two presidencies take a cautious line whilst declaring that they will...