ECOFIN COUNCIL: MINISTERS START PREPARATIONS FOR SPRING SUMMIT.

Speaking for the Austrian Presidency, Karl-Heinz Grasser indicated that a "broad consensus" emerged regarding financial proposals from the European Investment Bank (see Europe Information 3029). Mr Grasser was more evasive about the French proposal tabled in October at the Hampton Court summit concerning an euro 10 billion increase in funds available to the EIB for small businesses that prove particularly innovative in the area of R&D (Risk Sharing Financial Facility). One senior official did however suggest there is "general agreement on the principle". That said, the major contributors to the EU budget are still reluctant to sanction such largesse. Taking a diplomatic line, Mr Grasser suggested that the question is "how the EU can best promote growth and job creation". For him the answer is clear: the EIB and EBRD should give the member states a precious boost in four areas: on R&D, in the energy sector, through actions focusing on SMEs and in investment in major infrastructure projects.

The Council also held a first policy debate on preparations for the forthcoming spring Summit of EU leaders in the light of the four priorities proposed by the European Commission in order to re-launch the new Lisbon Strategy in 2006 and 2007. Following consultation with...