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Europaudvalget 2007-08 (2. samling)
2866 - økofin Bilag 7
Offentligt

23. maj 2008

Referat af rådsmødet (ECOFIN) den 14. maj 2008

Dagsordenspunkt 1

Kvalitet af offentlige finanser: Effektivitet i de offentlige

udgifter til sociale overførsler og uddannelse

ECOFIN nåede til enighed om rådskonklusioner (jf.

vedlagte bilag)

om efficiens og ef-

fektivitet af de offentlige udgifter til sociale overførsler og uddannelse. Konklusioner-

ne følger op på ministrenes drøftelse af emnet på det uformelle ECOFIN i den 4.-5.

april. Af rådskonklusionerne fremgår bl.a., at større efficiens og effektivitet i sociale

udgifter vil have en væsentlig positiv virkning på kvaliteten og holdbarheden af de

europæiske sociale modeller og på de offentlige finanser generelt.

Dagsordenspunkt 2

Investeringsfacilitet for Vestbalkan

ECOFIN drøftede perspektiverne i harmonisering og effektivisering af EU’s finansie-

ringsinstrumenter på det vestlige Balkan og nåede til enighed om rådskonklusioner

herom (jf.

vedlagte bilag).

I konklusionerne støtter ECOFIN Kommissionens forslag om

oprettelsen af ”Western Balkan Investment Framework”, som skal sikre rammerne for

øget koordinering mellem de eksisterende instrumenter. Kommissionen ventes løben-

de at orientere ECOFIN om sagen.

Dagsordenspunkt 3a

Finansielt tilsyn og finansiel stabilitet

ECOFIN nåede til enighed om rådskonklusioner om EU’s rammer for finansielt tilsyn

og finansiel stabilitet (jf.

vedlagte bilag),

herunder om indarbejdelsen af en europæisk

dimension i de nationale tilsynsmandater. ECOFIN godkendte endvidere opdaterede

planer for arbejdet med Lamfalussy-proceduren, EU's rammer for den finansielle sta-

bilitet samt opfølgningen på den senere tids turbulens på de finansielle markeder.

Dagsordenspunkt 3b

Formidling af finansiel viden

ECOFIN nåede til enighed om rådskonklusioner om formidlingen af finansiel viden

(jf.

vedlagte bilag),

som bl.a. lægger vægt på behovet for at øge befolkningens viden om

finansielle produkter.

Dagsordenspunkt 3c

Hvidbog om realkredit

ECOFIN nåede til enighed om rådskonklusioner om integration af EU’s realkredit-

markeder, som bl.a. opfordrer Kommissionen til at fortsætte det igangværende arbejde

på området (jf.

vedlagte bilag).

ECOFIN ventes at vende tilbage til sagen, når Kommissi-

onen har fremsat konkrete forslag.

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Dagsordenspunkt 4

Dialog med tredjelande: Økonomiske og finansielle an-

liggender

Kommissionen orienterede ECOFIN om den seneste udvikling i de bilaterale dialoger

med tredjelande på det økonomiske, finansielle og reguleringsmæssige område

Dagsordenspunkt 5a

Bekæmpelse af momssvig

Kommissionen orienterede ECOFIN om de igangværende forberedelser af tiltag til

effektiv bekæmpelse af momssvig. ECOFIN drøftede på den baggrund bl.a. mulighe-

den for at anvende ”Generel omvendt betalingspligt” som et instrument i bekæmpel-

sen af momssvig. ECOFIN nåede imidlertid ikke enighed om sagen, der ventes drøftet

igen i efteråret 2008.

Dagsordenspunkt 5b

Beskatning af opsparing

Kommissionen aflagde en foreløbig rapport til ECOFIN om de første tre års erfarin-

ger med rentebeskatningsdirektivet. Kommissionen redegjorde samtidig for forslag til

justeringer i direktivet. ECOFIN drøftede disse forslag og nåede til enighed om råds-

konklusioner herom (jf.

vedlagte bilag).

Dagsordenspunkt 5c

God regeringsførelse på skatteområdet

ECOFIN nåede til enighed om rådskonklusioner (jf.

vedlagte bilag),

som bl.a. understre-

ger betydningen af godt samarbejde i skattesager, når der indgås aftaler mellem EU og

tredjelande/tredjelandsgrupper. I konklusionerne lægger ECOFIN op til, at parterne

anerkender og forpligter sig til de principper på skatteområdet, som man har tiltrådt på

fællesskabsniveau, og at parterne vil forbedre det internationale samarbejde på skatte-

området, forbedre opkrævningen af legitimt skatteprovenu og udvikle ordninger med

henblik på effektiv gennemførelse af de nævnte principper.

Dagsordenspunkt 6

Udviklingsstrategi for toldunionen

ECOFIN drøftede Kommissionens meddelelse om en udviklingsstrategi for toldunio-

nen for perioden 2013 til 2019, og man nåede til enighed om rådskonklusioner herom

(jf.

vedlagte bilag).

Dagsordenspunkt 7

2009

Kommissionens foreløbige forslag til EU’s budget for

Kommissionen præsenterede ECOFIN for sit foreløbige forslag til EU’s budget for

2009 inden for rammerne af de finansielle perspektiver for perioden 2007-2013.

ECOFIN ventes at have førstebehandling af budgetforslaget den 17. juli 2008, og det

endelige budget for 2009 ventes vedtaget i december 2008.

Diverse

I margin af mødet havde ministrene den årlige dialog med EU kandidatlandene (Kroa-

tien, Tyrkiet og den tidligere jugoslaviske republik Makedonien). Ministrene drøftede

endvidere de overordnede principper for det fremtidige regime for nedsatte momssat-

ser i EU, og ministrene blev orienteret om mødet i eurogruppen den 13. maj 2008.

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Bilag

Rådskonklusioner vedr. effektivitet og efficiens af sociale udgifter

"The Council discussed the strategies to deliver more efficient, effective and sustaina-

ble welfare systems in the European Union.

EU Member States spend between 13% and 33% of their GDP on social expendi-

tures. The Council emphasizes that increasing the efficiency and effectiveness of social

expenditures will have a crucial impact on improving and securing the quality, evolu-

tion and long term fiscal sustainability of the European social models and public fi-

nances in general. Modern social, education and labour market policies should match

flexibility with security and ensure that citizens are equipped with the skills, support

and incentives they need to succeed in a changing world. Over the last decade, Mem-

ber States have undertaken significant efforts to reform and ensure the sustainability

of their social welfare systems, in particular to cope with the challenges of ageing pop-

ulations, socio-economic changes and globalisation.

The Council notes that the experiences of Member States help to identify possible

directions for efficiency enhancing reforms. Whilst emphasising that there is no "one-

size-fits-all" solution, the Council notes a number of general features which may sup-

port the efficiency and effectiveness of reforms of social protection systems:

–

within countries it can help if different reforms (e.g. labour and pension

reforms) are pursued together in a comprehensive approach taking into ac-

count all the various elements of the welfare system. Similarly it is im-

portant to consider the different levels of the public administration respon-

sible for their implementation.

social benefit schemes and tax-benefit systems should support the active

inclusion and the life-long learning of those receiving transfer incomes

with incentives to make work pay;

social inclusion and the capacity to respond to change should be supported

by policies that improve human capital formation throughout the life cy-

cle;

the complementarity between social and human capital spending is critical

to ensure high labour participation, social inclusion, enhance the competi-

tiveness of the EU, and control social spending;

education in all stages has a crucial role to play within the strategy to en-

hance investment in human capital and tertiary education (both private and

public) is a key determinant of the ability to innovate.

–

The strategies for enhancing efficiency and effectiveness of social spending would

benefit from evaluating systematically and across countries existing policies and their

impact on growth through appropriate, consistent and reliable measurement tools and

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indicators. A comprehensive overview of social spending would also benefit from

appropriate information on private social spending as well as tax expenditures and the

progressivity of tax systems. Specific tools such as performance budgeting and spend-

ing reviews or institutional arrangements including external review bodies can also

help to improve cost effectiveness, budgetary discipline as well as the sustainability of

social spending. Substantial gains may also be achieved through more efficient admin-

istration of social spending.

The Council:

–

reconfirms the call for the EPC and the Commission to step up their efforts

to improve the measurement and analysis of the quality of public finances

and its impact on growth. Member States and the Commission could in-

clude analyses on effectiveness and efficiency in the Lisbon National Re-

form Programmes and the Community Lisbon Programme.

invites the EPC and the Commission to continue their sectoral analysis,

with a view to

–

assessing in more detail the efficiency and effectiveness of public

spending on R&D and education. Given the strong relationship be-

tween higher education and productivity as well as growth, it would

be desirable to develop appropriate performance measurement tools

in order to assess its efficiency and effectiveness;

analysing the economic and budgetary impact of continuing health

care and pension reforms. The exchange of experiences and best

practices of social spending reforms should be fostered. Understand-

ing how different social spending categories interact with the tax

system together with the development of appropriate performance

measurement tools and other forms of evaluation will facilitate en-

hancing the efficiency and effectiveness of social spending;

analysing the quality, sustainability as well as the efficiency and ef-

fectiveness of revenue structures and its interaction with welfare sys-

tems as well as its macroeconomic implications. In particular, the

Council also reaffirms the need for Member States to exchange in-

formation on current and planned tax reforms and their impact on

growth, employment and social spending within existing procedures;

and

updating the work on fiscal frameworks including work on institu-

tional arrangements conducive to better quality of public finances,

including performance budgeting and spending reviews.

–

The Council takes note of the progress achieved with the delivery of cross-country

second-level COFOG data for public expenditure. To allow further analysis of past

trends in the composition of public expenditures, the remaining gaps need to be filled

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quickly and best efforts should be pursued to make the data publicly available by the

end of 2008 at the latest.

The Council will come back to these issues in the first half of 2009 with an analysis of

the trends in the composition of public expenditures. This should include an overview

of progress made with the development of measurement tools and indicators on the

quality of public finances and further work on the efficiency and effectiveness of R&D

and education spending in all stages."

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Rådskonklusioner vedr. investeringsfacilitet for det vestlige Balkan

"The Council notes the progress that has been made in the Western Balkans countries

in achieving transition, catching up and integration of their economies. The further

anchoring of macro-economic growth and stability in the Western Balkans, under-

pinned by private and public investment, is a shared interest of the EU. In June 2006,

the European Council welcomed "the

intention of the Commission to extend and to intensify its

cooperation with the European Investment Bank and other international financial institutions in the

Western Balkans with a view to taking appropriate measures aiming at a finance facility for the

Western Balkans."

The Council underlines that closer coordination is vital to ensure complementarity,

coherence, effectiveness, and efficiency of assistance in the Western Balkans. The

Council in this regard welcomes the initiative by the Commission in its Communica-

tion of 5 March 2008, together with the European Investment Bank, the European

Bank for Reconstruction and Development and the Council of Europe Development

Bank to establish a comprehensive Western Balkans Investment Framework to en-

hance harmonisation and co-operation in investments for socio-economic develop-

ment in the region. The Council stresses the need to streamline the existing facilities in

the context of the Investment Framework which should be rapidly implemented. The

funding of the facilities included in the framework is based on existing commitments

under Community pre-accession assistance and additional funds that may be granted

by participating institutions and bilateral donors (Member States) are subject to appro-

priate decisions of their governing bodies or Member States concerned.

The Council welcomes the setting up of a steering group between the Commission,

the EIB, the EBRD and the CEB and representatives of the Member States actively

involved in the region. This Group should immediately start working to review exist-

ing instruments and define possible synergies for co-operation and harmonisation as

regards investment projects in priority infrastructure and other socio-economic devel-

opment areas.

The Council invites the Commission and the partner IFIs to take swift action for the

implementation of the objectives mentioned above, and in this context considers the

following concrete steps as a matter of priority:

–

a pooling of grant resources, possibly through a joint trust fund, to help to

better link and mobilise existing grant resources for priority infrastructure

projects from the Commission, the partner IFIs, the Member States and

other EU multilateral donors.

the rapid establishment of a common website in 2008 providing a channel

for external communication and giving potential beneficiaries an overview

of the existing facilities of the participating institutions on the basis of a

comprehensive inventory;

the Council calls on the steering group to explore by the end of 2008 the

possible modalities of creating a single contact point for beneficiaries, (a

–

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one stop-shop), where they could transmit their request for financial sup-

port and receive co-ordinated advice on the availability of financing in-

struments;

–

the steering group should also investigate the scope for stepping up efforts

in the co-ordination and harmonisation process of the various grant and

loan instruments including with regard to the extension of the pooling of

resources to other areas than infrastructure and in particular SMEs and for

merging instruments of similar rationale;

the steering group should ensure that best practice standards on monitoring

and evaluation of the impact of funding are maintained;

–

The Council calls on the Commission, the EIB, the EBRD the CEB and Member

States to co-operate closely in pursuing the above objectives and swiftly deliver on the

above steps. It invites the Commission to report at least annually up to 2010 to the

Council from the steering group on progress made, with the first report by the end of

2008 including more concrete milestones and a roadmap identifying persisting obsta-

cles to the further realisation of the Western Balkans Investment Framework by

2010."

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Rådskonklusioner vedr. finansiel stabilitet

"In line with the Council conclusions of 9 October 2007 and 4 December 2007, the

conclusions of the European Council of 14 March 2008; and taking into account the

discussion at the informal ECOFIN meeting of 4-5 April 2008 in Ljubljana, the

ECOFIN Council AGREED further steps to develop the supervisory and financial

stability arrangements in the EU, based on the work by the Economic and Financial

Committee, Financial Services Committee and the Commission. The ECOFIN

reached the following conclusions.

The EU Supervisory Framework

The Council STRESSES the need for full and timely implementation of the roadmap

agreed in December 2007 on the Lamfalussy review, including financial supervision, to

achieve further concrete results by the end of 2008. The Council ENDORSES the

following steps to this end:

Introduction of a European Dimension into the Mandates of National Supervisory Authorities

The Council AGREES that the EU dimension should be taken into account in an

appropriate way by national supervisors as follows:

–

In the exercise of their responsibilities, the financial supervisors in the EU

Member States should intensify work towards enhanced European super-

visory convergence and their task should include cooperation at the EU

level and among Member States within and across financial sectors.

The enhanced EU dimension would in particular allow financial supervi-

sory authorities to consider financial stability concerns in other Member

States in exercising their duties and to apply guidelines and recommenda-

tions adopted by the EU Committees of Supervisors (level 3 committees)

in line with the 'comply or explain' procedure. While guidelines and rec-

ommendations adopted by these committees are non-legally binding, those

supervisors who do not comply should explain their decisions publicly.

–

The Council INVITES Members States to ensure, at the latest by mid-2009, that the

mandates of national supervisors allow them to take the EU dimension into account in

exercising their duties; NOTES the intention of the Commission to introduce these

objectives, where practical and appropriate, into EU legislation; and INVITES the EU

Committees of Supervisors to report regularly to the FSC on progress made, and the

FSC to present a report assessing the application of the EU dimension in the national

mandates by the end of 2009.

Improving the Functioning of the EU Committees of Supervisors

The Council NOTES the examination by the Commission of options available for

improving and strengthening the functioning of the EU Committees of Supervisors; as

well as the guidance provided by the FSC and EFC. The Council STRESSES the need

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to make progress in this area, without unbalancing the current institutional structure or

reducing the accountability of supervisors, and without changing the legal status of the

Committees. The Council AGREES on the following:

–

First, the Commission is INVITED to revise, by the end of 2008, the

Commission Decisions on the establishment of the EU Committees of Su-

pervisors - the Committee of European Securities Regulators (CESR), the

Committee of European Banking Supervisors (CEBS) and the Committee

of European Insurance and Occupational Pensions Supervisors (CEIOPS)

– so as to ensure coherence and consistency in their mandates and tasks as

well as to strengthen their contribution to supervisory cooperation and

convergence;

Second, specific tasks should be explicitly given to the EU Committees of

Supervisors to foster supervisory cooperation and convergence, and their

role in assessing risks to financial stability. This could include tasks such

as: (i) mediation between supervisory authorities to help in solving possi-

ble disagreements, in particular within colleges; (ii) facilitating adequate

information exchange between supervisors; (iii) providing non-legally

binding guidelines and recommendations as well as guidance for national

supervisory authorities in order to ensure convergence of practices, super-

visory approaches and financial reporting among the EU supervisors; (iv)

the development of a common European supervisory culture through train-

ing and staff exchange; (v) ensuring efficient cooperation across financial

sectors between the EU Committees of Supervisors; and (vi) monitoring of

financial stability and reporting on risks to the EFC.

Third, the Council INVITES the Commission and the FSC to further ex-

amine, by September 2008, which tasks should be given to the EU Com-

mittees of Supervisors and which legal instrument should be used to en-

sure that the Committees are adequately equipped to perform their tasks,

without changing the current institutional framework. The FSC is

INVITED to provide guidance on this issue, as appropriate.

–

The Council (i) RECALLS its request for the introduction, by mid-2008, of the possi-

bility of qualified majority voting, coupled with ‘comply or explain’ procedures, into

the charters of the EU Committees of Supervisors; and (ii) LOOKS FORWARD to

receiving, by mid-June 2008, the outcome of the examination by the Committees of

Supervisors of the possibilities to strengthen the national application of their guide-

lines, recommendations and standards without changing their legally non-binding na-

ture.

The Council RECALLS its invitation to the EU Committees of Supervisors to intro-

duce EU-wide common reporting formats with a view to reducing the cost of report-

ing for the industry where possible, and LOOKS FORWARD to the Commission and

the EU Committees of Supervisors suggesting a timetable by mid-2008, for achieving

a single set of data requirements and reporting dates. The Council INVITES the Fi-

nancial Services Committee and the Commission in autumn 2008 to consider the next

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steps for convergence of regulatory and financial reporting within the EU, including

the possibility for the EU Committees of Supervisors to gather aggregated data.

The Council STRESSES that the following important aspects must be taken into ac-

count in developing the roles of the EU Committees of Supervisors, and in the as-

sessment of risks to financial stability at the EU level:

–

In line with its conclusions of 7 December 2004, 4 December 2007 and the

ECOFIN Council report to the European Council of 4 March 2008 (doc.

7290/08), the Council UNDERLINES the importance of receiving regular

and concise assessments of key developments, risks and vulnerabilities,

which could affect the stability of the EU financial system, based on the

reporting by the

EFC's Financial Stability Table.

The Council STRESSES

that the EU Committees of Supervisors should be able to gather aggregate

information in order to assess these features within and across financial

sectors and to alert the EFC on potential or imminent problems in the fi-

nancial system; INVITES the Committees to continue to report to the EFC

Financial Stability Table on semi-annual basis, and whenever necessary in

light of the financial market situation; and INVITES the EFC, in its report-

ing to the ECOFIN Council, to provide advice on the need to take common

policy actions by the authorities;

The Banking Supervision Committee of the European System of Central

Banks (BSC) that brings together the Central Banks and Banking Supervi-

sory Authorities, is INVITED to enhance its contribution to the regular as-

sessment of financial stability by the EFC Financial Stability Table by

providing an overview on risks in the EU banking sector, taking into ac-

count their broad impacts on the financial system; the CEBS and the BSC

are INVITED to ensure an efficient and appropriate division of labour

among these two bodies;

–

The Council STRESSES the importance of the EFC Financial Stability Table to main-

tain EU influence in the policy issues related to financial stability at a global level.

The Council STRESSES that sufficient funding and staffing must be ensured to pro-

vide the basis for effective supervision. To this end,

–

Each Member State is INVITED to ensure that adequate resources are in

place at the national level for Financial Supervisory Authorities to perform

their tasks, taking account of the EU dimension and their contribution to

the work of the EU Committees of Supervisors;

the EU Committees of Supervisors are INVITED to endow themselves

with adequately staffed Secretariats and, as part of their annual work

plans, provide an assessment of their resources to carry out their tasks; and

The Council LOOKS FORWARD to the Commission assessment and

proposal concerning financial support under the EU Budget for specific

EU-wide projects that are requested from the EU Committees of Supervi-

sors and for developing supervisory tools and for building a common su-

pervisory culture;

–

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The Supervision of EU-wide Financial Groups

The Council STRESSES that work should be stepped-up towards enhancing con-

sistency and effectiveness of the supervision of financial groups operating in more

than one Member State, regardless of legal form, sector or location. The Council

WELCOMES the work carried out by the Commission and the EU Committees of

Supervisors on further developing colleges of supervisors; and NOTES that colleges

provide for a more effective supervision of cross-border financial groups by facilitat-

ing the sharing of information, including, when appropriate, with the authorities from

countries that are not participating in colleges but in which financial stability may also

be affected; by facilitating delegation of tasks between the home and host supervisory

authorities; by providing a platform for a decision-making process where appropriate;

and by striving to reach common views on the key supervisory decisions. The Council

in particular:

–

AGREES that the role of the colleges of supervisors should be strength-

ened; and that colleges should be extended to all cross-border financial

groups in the EU so as to organise co-operation and the sharing of infor-

mation between home and host supervisory authorities of Member States

in which financial groups have significant activities, and to enhance the ef-

ficiency of supervision by developing common approaches to key supervi-

sory decisions;

STRESSES that in order to ensure consistency among colleges and so

avoid fragmentation, the colleges should operate along the same principles

and objectives across financial groups (banking, insurance, conglomerates

and investment services) and countries, taking into account, in particular:

(i) the different legal structures (including purely branch or subsidiary -

based), (ii) the need for involvement and participation of host authorities

having financial stability interests and responsibilities; and (iii) the risk

profiles of the sectors as well as differences in the legislative framework

across financial sectors; and STRESSES that the EU Committees of Su-

pervisors should play a role in giving operational guidelines to provide

consistency in the working procedures of the different colleges and effec-

tiveness of the decision making process and provide reassurance to super-

visors involved in the colleges, as well as monitoring the coherence of the

practices of the different colleges of supervisors and sharing best practices,

and LOOKS FORWARD to proposals in this regard from the EU Commit-

tees of Supervisors by mid-2008;

UNDERLINES the need for efficient functioning of colleges, while ensur-

ing an appropriate balance between home/host supervisors, appropriately

reflecting their competences and responsibilities and inherent accountabil-

ity. To this end, appropriate coordination tasks should be given to the

home country supervisory authorities, while at the same time ensuring that

all information that is relevant for the assessment of a financial group and

its components, is made available to the host country authorities;

–

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–

STRESSES the importance of strengthening the legal underpinning of

colleges of supervisors in the relevant directives in the context of the on-

going work by the Commission, Council and European Parliament.

Enhancements to the EU arrangements for financial stability and Crisis Management

Memorandum of Understanding (MoU) on Cross-border Financial Stability

In line with the EFC Recommendations of October 2007 on developing EU arrange-

ments for financial stability, the ECOFIN Council CONFIRMS that the Memoran-

dum of Understanding (MoU) between Central Banks, Financial Supervisory Authori-

ties, and Finance Ministries has been agreed and is in the process of being signed and

will enter into force as soon as signed by all parties.

The Council REITERATES that, in the context of implementation of the MoU on

Cross-Border Financial Stability, close co-operation should be pursued between Mem-

ber States and all relevant authorities, including through possible Cross-Border Stabil-

ity Groups. In a financial crisis situation, in line with the Common Principles, primacy

will always be given to private sector solutions. If public resources must be involved,

direct budgetary net costs will be shared among affected Member States on the basis

of equitable and balanced criteria, which take into account the economic impact of the

crisis in the countries affected and the framework of home and host countries’ super-

visory powers. This issue, namely principles and procedures of burden sharing, needs

to be further addressed, inter alia in the implementation of the MoU on Cross-Border

Financial Stability.

Crisis Simulation Exercise

The Council INVITES the EFC to initiate preparations for an EU-wide crisis simula-

tion exercise with the objective to organising it in spring 2009. The EFC is INVITED

to present a report to the ECOFIN in September 2009 on the main results and make

further policy recommendations in order to address the key challenges that have been

identified.

Deposit Guarantee Schemes

The Council RECALLS the conclusions of 9 October 2007 and CONSIDERS that

Deposit Guarantee Schemes are a key part of the framework for ensuring financial

stability; and that the developments in financial markets since August 2007 have prov-

en the important role of DGSs in maintaining confidence in the banking system.

The Council RECALLS, in line with the ECOFIN Report to the European Council of

4 March 2008, the need to perform further work on improving the functioning of the

deposit guarantee schemes in the EU; and INVITES the EFC to prepare an orienta-

tion discussion for the June 2008 ECOFIN meeting; and, by early September 2008,

the Commission to present the outcome of its examination, the FSC and the EFC to

provide policy guidance to the Council on the way forward - in view of preparing a

strategic discussion by the ECOFIN in autumn 2008. These considerations should

include an assessment of policy options available, including on whether there is a case

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for regulatory action; and take into account level playing field aspects and inter-

linkages of the DGS with crisis prevention and management, including the possible

link to early intervention and reorganisation of a financial group, as well as issues relat-

ed to the sharing of a financial burden.

The Council WELCOMES the Commission’s intention to carry out further work in

the area of insurance guarantee schemes while recognising that the nature of these

schemes is different in terms of preserving financial stability.

Next Steps

After having reviewed the progress made with the implementation of the roadmaps of

9 October 2007 (on developing the EU arrangements for financial stability) and 4 De-

cember 2007 (on financial supervision), the Council STRESSES that, as a matter of

priority, reinforced efforts are needed to finalise all actions by end-2008 and mid-2009,

to ensure that benefits of the current institutional arrangements, strengthened as ap-

propriate, are fully reaped. Updated versions of the 3 roadmaps are specified in a sepa-

rate document attached to these conclusions, with an indication of progress made in

their implementation and further steps to be undertaken by autumn 2008.

The ECOFIN Council shall review progress made in implementing the roadmaps on

supervision and crisis management regularly, next time before the end of 2008. Overall

progress and the need for further policy priorities shall be assessed by the end of 2009,

based on an examination by the Commission, the FSC and the EFC on the achieve-

ments made on financial supervision and on the testing of the MoU on Cross-Border

Financial Stability in the crisis simulation exercise.

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Updated

ECOFIN

Roadmaps

'Review

the

Lamfalussy

'Strengthening

arrangements

for

financial

and 'Actions taken in response to the financial turmoil'

process';

stability';

The Council reviewed the three roadmaps agreed by ECOFIN, on 9 October 2007

and 4 December 2007, as follows:

Enhancing the Lamfalussy process, incl. financial supervision:

Commission to revise the Decision on the EU Committees of Supervisors to

include specific tasks to foster convergence and cooperation; and by Sep-

tember 2008 consideration by the Commission and the FSC on which spe-

cific tasks should be given to the EU Committees of Supervisors and which

legal instrument should be used;

On-going (April 2008):

Member States, with the contribution of the EU Committees of Supervisors as appro-

priate, to adopt common formats, where appropriate, to disclose national transposition

and implementation of EU legislation;

May/June 2008:

Draft work programmes of the EU Committees of Supervisors. Programmes for 2009

have been transmitted to the Commission, the European Parliament and the Council to

allow them to express their view on the key priorities and give policy advice on supervi-

sory convergence and cooperation. The EU Committees of Supervisors will then report

annually on the achievement of their objectives. ;

On-going (June 2008):

The EU Committees of Supervisors by the

mid of 2008

to explore the possibilities to

strengthen the national application of their guidelines, recommendations and standards,

without changing their legally non-binding nature;

June 2008:

The EU Committees of Supervisors by the

mid of 2008

to introduce in their charters the

possibility to apply qualified majority voting where necessary. While these committees'

decisions are not legally binding, those who do not comply should explain their deci-

sions publically;

Mid 2008:

The EU Committees of Supervisors to study the possibilities to introduce a common

set of operational guidelines for the operation of colleges of supervisors and monitor

the coherence of the practices of the different colleges;

June 2008:

The EU Committees of Supervisors to propose timetables for the introduction of EU-

wide reporting formats for single data requirements and reporting dates; and Commis-

sion and the FSC in autumn 2008 to consider next steps for the convergence of regula-

tory and financial reporting;

December 2008:

The Commission has progressed, in cooperation with the EU Committees of Supervi-

sors, with its studies on sanctioning powers, provisions for supervisory cooperation,

information exchange and delegation of tasks as specified in the roadmap;

December 2008:

On-going (mid-2009):

Commission to finalise its considerations on financial support under the EU budget for

specific EU wide projects that are requested from the EU Committees of Supervisors;

Commission to carry out by the

mid of 2009

cross sectoral consistency checks, where

still necessary to foster coherence of terminology and effect across all EU financial

Ongoing (final: end 2008,

interim: September 2008)

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services law;

Mid-2009:

Member States to ensure that their supervisory authorities are able to take into account

the EU dimension in the performance of their duties, including having regard to the

financial stability concerns in other member State sin exercising their duties;

End-2008 and end-2009

The ECOFIN Council shall review overall progress before the end of 2008; and by the

end of 2009, to consider the need for further policy priorities based on an examination

by the Commission, the FSC and the EFC on the achievements made, and on the

testing of the MoU in the crisis simulation exercise.

2. Financial Stability Arrangements – enhanced preparedness on Financial Crisis Man-

agement: Procedures, Principles and Tools:

May-December 2008:

Implementation of the Memorandum of Understanding agreed in May 2008

by EU Supervisory Authorities, Finance Ministries and Central Banks Cross-

Border Financial Stability (key aspects are: the implementation of common

principles; setting-up cooperation mechanisms, including Cross-Border

Stability Groups where relevant; updating the existing (non-legally binding)

cooperation arrangements; implementing the common framework for as-

sessing systemic impacts of a crisis; and developing tools for crisis manage-

ment; enhancing preparedness in line with the Common Practical Guide-

lines; and conduct of EU wide crisis simulation exercise);

On-going (2007-2009):

the Commission to propose ways to clarify cooperation obligations including possible

amendments to EU-banking legislation, especially to: clarify the existing obligations for

Supervisory Authorities, Central Banks and Finance Ministers to exchange information

and to cooperate in a crisis situation; increase the information rights and involvement of

host countries; clarify the role of the consolidating supervisors and facilitate the timely

involvement of relevant parties in a crisis situation; and examine whether, to this end,

legislative changes are necessary, including to reinforce the legal requirements for super-

visory collaboration and information sharing. Commission proposal September 2008;

and adoption by EP/Council by April 2009.

May 2008-Spring 2009:

the Economic and Financial Committee to conduct an EU wide crisis simulation exercise

to test the proposed arrangements and to report to ECOFIN Ministers on its conclu-

sions in autumn 2009. The technical work will start in May 2008. The objectives of the

exercise are to test the key objectives and procedures set out in the Memorandum

around genuine cross-border financial groups on which authorities in different countries

share stability concerns, as well as the challenges and tools related to cross-border crisis

management, including on financial burden sharing, as outlined in the EFC Report of 5

September 2007.

On-going (by 2008):

the Commission has undertaken work towards clarifying when a banking crisis could be

considered by the Commission as “a

serious disturbance for the economy”

(under the Treaty

and State aid rules) and considered the streamlining of procedures focusing on how State

aid enquiries under critical circumstances can be treated rapidly. Dialogue has taken place

between the Member States and the Commission on these issues; and the Economic and

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Financial Committee is expected to consider them by summer 2008.

On-going (until 2009):

the Commission to assess the possible extension of the scope of the present EU-

Directive on winding up of credit institutions to include insolvent subsidiaries with the

objective to increase the efficiency, the optimal reorganisation and winding up of cross

border banking groups taking due consideration of the interests of all stakeholders

concerned. The Commission to launch a public consultation October 2007; legal study

of obstacles mid 2008; and release a Commission Green Paper by end 2008.

June and Autumn 2008:

Orientation discussion by the ECOFIN Ministers on Deposit Guarantee Schemes in 3

June 2008 ECOFIN; and a strategic discussion in autumn 2008 by the ECOFIN Council

on the basis of report from the Commission on the Deposit Guarantee Schemes in the

EU (focusing e.g. on improving the speed of payouts, depositors information, and cross-

border interoperability) and consideration of connected measures for authorities to apply

early intervention and reorganisation measures to cross-border groups; and guidance by

the FSC and EFC

November 2008:

Feasibility study by the Commission on the obstacles to asset transferability that could

hinder crisis-management of cross-border groups. The overall objective is to reinforce

the primacy of private solutions, avoid counter-productive ring-fencing of assets, and

facilitate a smooth management of a crisis.

December 2008:

The FSC and the Commission to review the availability of tools for crisis management

and resolution in the EU Member States, also so as to be ready in time for the next crisis

simulation exercise; a detailed plan on the organisation or the exercise shall be approved

by the EFC in December.

Actions taken in response to the financial turmoil:

The Council in October 2007 endorsed a specific roadmap for action taken in re-

sponse to the financial turmoil, identifying four main areas of priority in response to

the turmoil, i.e. (i) improving transparency, (ii) valuation of financial products, (iii)

strengthening prudential requirements and (iv) making markets function better. On

most issues identified in the roadmap, action is ongoing and scheduled to be complet-

ed by mid-2008 (on transparency, valuation and Credit Rating Agencies) or the third

quarter of 2008 (on prudential rules and risk management). This update also takes into

account work already undertaken and progress made at the EU and international level.

I. Enhance transparency for investors, markets and regulators

By the time of publication of

mid-year results

Full and prompt disclosure by financial institutions of on- and off-balance sheet risk exposures,

depreciations and losses (write-downs, and fair value estimates for complex and illiquid assets), con-

sistent with leading disclosure practices (at EU-level: the industry);

June 2008

The review of Public disclosure of types and amounts of securitization exposures, significant individ-

ual transactions and SPV exposures by banks has revealed heterogeneities in these practices. Banking

Supervisors are invited to work intensively on these issues and in particular to consider complemen-

tary guidelines (at EU-level: CEBS in coordination with the industry and the Commission in monitor-

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ing capacity);

June 2008

Organize comprehensive, frequent statistical data on credit markets for supervisors and, where ap-

propriate, the public (at EU-level: the industry and the Commission in monitoring capacity);

II. Improve valuation standards, including of illiquid assets

Mid-2008

Agree on a common approach to the accounting valuation of illiquid assets and implications for risk

management practices by banks;

And, update on international

efforts at July 2008 ECOFIN

Ensure the proper functioning of the financial reporting framework by means of clear guidelines by

on valuation that can be applied consistently across institutions;

Consider improvements in market valuations more generally. (At EU-level: CEBS, auditing profes-

sion, industry and the Commission.; at global level: FSF, IASB, IOSCO, BCBS);

Advanced from Q3 2008 to

Mid-2008

Assess the deployment of sound asset valuation standards in non-bank investors (e.g. asset managers,

pension funds etc), particularly in relation to (potentially) illiquid assets (at EU-level: auditing profes-

sion, industry, CEIOPS, CESR and the Commission; at global level: IASB, IOSCO, BCBS).

III. Reinforce prudential rules and risk management in the financial sector

Orientation

debate

the

Review possible enhancements of Deposit Guarantee Schemes in the EU, including issues related to

communication between authorities and depositors (at EU-level: Commission, FSC);

June2008 ECOFIN and guid-

ance to the ECOFIN in Q4

2008

Q3 2008

Assess the level of risk management standards in non-bank investors (e.g. asset managers, pension

funds etc), particularly in relation to (potentially) illiquid assets (at EU-level: CESR, CEIOPS, the

industry and the Commission; at global level: IOSCO);

Advanced from end 2008 to

September 2008

Enhance liquidity risk assessment and management by banks by agreeing on robust minimum stand-

ards for banks to withstand stressed market conditions (at EU-level: ECB/BSC and Commission, in

coordination with CEBS; at global level: BCBS);

Advanced from end 2008 to

Q3 2008

Examine the need for a wider concept of concentration risk, including wholesale and interbank mar-

kets, and intra-group exposures, as part of the EU Large Exposure Review (at EU-level: CEBS and

Commission);

Advanced from end 2008 to

Q3 2008

Examine the Basel2/CRD regulatory framework for banks' liquidity exposures to ABCP conduits and

SPV's to reflect lessons concerning banks': (1) incentives to move risk off-balance sheet; (2) regulation

and management of liquidity and reputational risks transferred to SPVs and Conduits; (3) valuation

and treatment of SPV's and forced asset buy-backs. (at EU-level: Commission; at global level: BCBS);

Postponed from Q3 2008 to

end 2008

Identify and remove any regulatory arbitrage opportunities and examine the Basel2/CRD framework

for banks' own trading book exposures, including the treatment of 'warehousing' and 'pipeline' risks

(at EU-level: Commission, in coordination with CEBS; at global level: BCBS).

IV. Improve market functioning including the role of credit agencies

Mid--2008

Examine the incentive structures in credit markets and the implications of the 'originate to distribute'

models of banks for credit markets (ECB/BSC, in coordination with Commission and CEBS);

Postponed from mid-2008 to

end-2008

Advanced

from

December

Examine rules covering the origination and (mis-) selling of mortgage credit (Member States and the

Commission);

Consider how to improve (global) cooperation between supervisors including outside the EU, taking

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2008 to Q3 2008

End 2008

into account the proposals to enhance cooperation, renew and improve crisis management tools as set

out by the ECOFIN on 9 October 2007 based on EFC recommendations (at EU-level: the EFC and,

the Commission for planned changes to the CRD;at global level: FSF);

June 2008 for the July 2008

ECOFIN

Examine the role of credit rating agencies and the uses of credit ratings, in particular as regards struc-

tured finance instruments, conflicts of interest, transparency of rating methods, time-lags in rating

reassessments and regulatory approval processes;

By end-May 2008, IOSCO should revise its Code of Conduct fundamentals for credit rating agencies

End-May 2008

Mid-2008

(a revised code has been published on 26 March for consultation). (At EU-level: Commission, based

on reports CESR and ESME; at global level: IOSCO);

Examine the organisation of non-regulated debt markets (CESR, FSC).

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Rådskonklusioner vedr. formidling af finansiel viden

"The Council:

–

RECOGNISES the importance of enhancing the financial education of

consumers, in particular because of the complexity of financial products,

the importance of financial decisions for households and the speed at

which the financial services industry is evolving is creating ever more op-

tions for customers;

RECALLS its conclusions of May 2007, in which it invited the Member

States to "significantly step up their efforts to raise households' awareness

on the latter's need to obtain proper information and education, in combi-

nation with the financial industry's own responsibilities and initiatives as

appropriate, so as to increase households' preparation whilst maintaining

adequate investor protection";

WELCOMES the Commission Communication of 18 December 2007 on

financial education and the growing number of initiatives developed in the

EU aimed both at raising awareness of the need to address financial educa-

tion and at promoting its efficient and high-quality provision;

RECOGNISES the importance of establishing at EU level a set of tools,

including an exchange of best practices, for a more effective provision of

financial education, involving both the public and the private sector;

INVITES Member States to step up their efforts to provide financial edu-

cation to citizens, to increase citizens' awareness of its importance in view

of future challenges for private finances (pension, health financing, hous-

ing finance) and to give consideration to the usefulness of including finan-

cial literacy in school curricula, bearing in mind the principles identified in

the Commission Communication, including training at all stages of life

and programmes targeting the specific needs of each group of recipients,

so that financial education consistently fulfils the criteria of transparency

and objectivity;

ENCOURAGES the Commission to pursue its efforts to facilitate the pro-

vision of financial education by the Member States and stakeholders, in

particular by the creation of a network of financial education practitioners,

providing support for events promoting financial education, the publica-

tion of a European-wide database of financial education schemes and re-

search, as well as the enhancement of EU online tools for spreading prac-

tical knowledge of how to teach financial issues;

–

LOOKS FORWARD to the results of the comprehensive review announced by the

Commission for 2010."

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Rådskonklusioner vedr. realkredit

"The Council:

–

RECALLS its conclusions of May 2006 on the Commission White paper

on the Financial Services Policy 2005-2010, where it welcomed "the ini-

tiatives proposed by the Commission, stressing that progress in the greater

integration of retail markets is a challenge for 2005-2010 in order to

strengthen competition and ensure an appropriate level of consumer pro-

tection;"

STRESSES the importance of mortgage credit for both EU citizens and

the economy at large and of tackling barriers in order to achieve greater in-

tegration of mortgage credit markets, so that EU consumers and mortgage

lenders can take full advantage of the benefits of the Single Market;

WELCOMES in that regard the Commission White paper on the integra-

tion of EU mortgage credit markets;

SUPPORTS the Commission's overarching goal of achieving competition

and efficiency of EU mortgage credit markets and the four general objec-

tives it has put forward to this end in the White paper, namely: to facilitate

the cross-border supply and funding of mortgage credit; to increase prod-

uct diversity, combined with strong consumer protection and adequate fi-

nancial stability; to improve consumer confidence and to facilitate cus-

tomer mobility;

RECOGNISES that the potential for integration is determined by a range

of factors including culture, language and customer preferences, and that

further integration is therefore likely to be supply driven rather than de-

mand driven in the foreseeable future;

ENCOURAGES the Commission to continue assessing the costs and ben-

efits of the various policy options for achieving further integration, includ-

ing as regards possible legislation for relevant areas in accordance with the

'Better regulation' principles;

WELCOMES the approach used by the Commission, which relies on a

rigorous impact assessment of the various policy options for meeting the

four general policy objectives, and in particular the ones that are crucial to

improve consumer confidence and empowerment, and to improve the

cross-border supply and funding of mortgage credit;

SUPPORTS in this context the Commission 's intention to assess the bene-

fits and costs of different policy options on issues such as access to credit

registers and (other) tools to assess potential borrowers' creditworthiness

on a cross-border basis; options on early repayment; options to improve

the quality and the comparability of information (incl. enhancing pre-

–

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contractual information and further harmonising the Annual Percentage

Rate of Charge), and options to promote both responsible lending and bor-

rowing;

–

REITERATES in line with the (aforementioned) Council conclusions of

May 2006 on the Commission White paper on the Financial Services Poli-

cy 2005-2010 the importance of strengthening consumer input in this pro-

cess, for example concerning broad consumer testing of possible infor-

mation requirements;

ENCOURAGES the Commission to proceed with the proposed initiatives

in accordance with the timetable put forward in the White paper;

In terms of policy options going forward, WELCOMES the Commission's

intention to design and to regularly update 'scoreboards' presenting objec-

tive information on the cost and duration of land registration and foreclo-

sure procedures in all Member States; and

–

LOOKS forward to the Commission's announced Recommendation on valuation,

land registers and foreclosure procedures, expected this year."

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Rådskonklusioner vedr. beskatning af opsparing

"The Council calls on the Commission to submit the report pursuant to Article 18 of

the Directive on the taxation of savings income in the form of interest payments by 30

September 2008 at the latest, to be followed by specific proposals based on the report.

Member States are asked to provide the Commission with the necessary statistical and

other data."

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Rådskonklusioner vedr. god regeringsførelse på skatteområdet

"The Council:

CONSIDERS that recent events involving tax fraud and evasion have

proven the need to tackle this throughout the world and to reinforce efforts

to combat cross-border tax fraud and evasion in the area of taxation.

UNDERLINES the importance of implementing, on as broad a geograph-

ical basis as possible, the principles of good governance in the tax area, i.e.

the principles of transparency, exchange of information and fair tax com-

petition, as subscribed to by Member States at Community level. Good

governance in the tax area is not only an essential means for combating

cross-border tax fraud and evasion, but can strengthen the fight against

money laundering, corruption, and the financing of terrorism.

RECOGNISES the need to include in relevant agreements to be concluded

with third countries by the Community and its Member States, without

prejudice to their respective competences, a specific provision on good

governance in the tax area, and considers the following text to be appro-

priate in this respect:

"With a view to strengthening and developing economic activities while

taking into account the need to develop an appropriate regulatory frame-

work, the Parties recognize and commit themselves to implement the prin-

ciples of good governance in the tax area as subscribed to by Member

States at Community level. To that effect, without prejudice to Community

and Member States' competences, the Parties will improve international

cooperation in the tax area, facilitate the collection of legitimate tax reve-

nues, and develop measures for the effective implementation of the above

mentioned principles."

STRESSES its attachment to the furtherance of good governance in the tax

area with respect to ongoing and future negotiations.

Within the framework of the applicable Treaty provisions, the Commis-

sion will inform and consult, whichever is appropriate, the relevant Coun-

cil bodies, with due diligence and timely, on any question relating to the

specific provision on good governance in the tax area which may arise in

the process of the negotiations of the international agreements referred to

above."

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Rådskonklusioner vedr. udviklingsstrategi for toldunionen

"THE COUNCIL,

RECALLING the crucial role played by the Customs Union since 1968 as a founda-

tion of the European Union;

RECALLING the objectives set by the Lisbon Strategy, as relaunched by the Europe-

an Council of 22 and 23 March 2005, for the Union "to renew the basis of its competi-

tiveness, increase its growth potential and its productivity and strengthen social cohe-

sion, placing the main emphasis on knowledge, innovation and the optimisation of

human capital";

RECALLING the recent adoption of the Regulation of the European Parliament and

of the Council on a modernized customs code and of the Decision of the European

Parliament and of the Council on a paperless environment for customs and trade,

which are major steps taken by the Union in view of meeting the above objectives;

RECALLING the Decision of the European Parliament and of the Council establish-

ing an action programme for customs in the Community (Customs 2013);

RECALLING that the Council, at its meeting on 4 December 2006, recognised the

central role of customs in making progress towards establishing Single Window/One

Stop Shop services, bringing together administrations involved in import and export

of goods;

RECALLING the Council Resolution of 30 May 2001 concerning a strategy for the

Customs Union and the Council Resolution of 2 October 2003 on a strategy for cus-

toms cooperation;

UNDERLINES that customs authorities of the European Community, be-

ing the principal authority with an overview of the import and export of

goods and the international supply chain, in a context of rapid increase of

trade, should maintain a permanent balance between safety and security

concerns and the protection of society and of the financial interests of the

European Community and of the Member States, on the one hand, and the

facilitation of legitimate trade and the enhancement of the competitiveness

of the European economy, on the other;

WELCOMES the Commission Communication entitled "Strategy for the

evolution of the Customs Union", and ENDORSES in particular:

–

the role of customs, with regard to the trade, financial, fiscal, safety

and security interests of the Union; and

the common strategic objectives;

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CONSIDERS that to achieve such objectives, customs authorities should

have a sufficient level of investment in skills, competences, resources and

technologies;

STRESSES that customs should focus on:

–

increasing competitiveness, by facilitating legitimate trade, in partic-

ular by further developing Single Window services and new control

methods (system-based approach);

the enhancement of safety and security, notably regarding the fight

against counterfeiting and piracy, and the capacity to rapidly react to

crises, as well as the protection of the financial interests of the Euro-

pean Community and Member States and the fight against fraud;

the enhancement of cooperation with economic operators, other gov-

ernmental authorities, international organisations, and third coun-

tries;

–

INVITES the Commission to develop a single comprehensive implementa-

tion plan by the end of 2009, in close cooperation with the Member States,

in order to achieve these objectives, and to report on the progress to the

Council by 2011."

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