ECOFIN COUNCIL: STABILITY PACT AND TAXATION ON AGENDA FOR JUNE 2-3 SESSION.
The EcoFin Council session will be preceded on the evening of June 2 by a meeting of Euro-zone Finance Ministers. The Eurogroup will conduct its traditional review of the economic situation. The European Director of the International Monetary Fund (IMF) Michael Deppler should outline his institution's reading of the economic situation in the Euro-zone.
The Eurogroup will seek to reach an agreement on the draft recommendation reporting an excessive deficit in France in 2002. The members of the Economic and Financial Committee failed to reach agreement on the content of a text at their meeting on May 23. The Netherlands and Spain in particular are keen to toughen up the content of the recommendation. Both these Member States are calling for a 0.5% reduction in the structural deficit to be demanded from 2003. The draft Commission recommendation (see European Report 2773 for further details) calls on France to reduce its deficit below 3% of GDP in 2004. The recommendation will be adopted by the EcoFin Council on May 3 by qualified majority.
Salmonika European Council.
In the context of the preparations for the Salonika European Council on June 20 and 21, the Finance Council should adopt its report on Broad Economic Policy Guidelines for the period 2003-2005. The report notably identifies the political priorities of the BEPGs: promoting growth, increasing the flexibility of labour markets and guaranteeing the sustainability of public finances.
Financial services.
Ministers should consider the eighth bi-annual report from the Commission assessing progress in the introduction of the Financial Services Action Plan (FSAP). The report notably recalls the final...
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