By Chris Jones - 23rd January 2006
Energy supply, euro convergence and VAT will top the agenda of EU finance ministers meeting in Brussels on Tuesday.
Europe’s finance ministers have been dragged into the debate on the future of EU energy supplies after the dispute between Russia and Ukraine over increased supply costs.
France’s Thierry Breton will present a paper calling for a major rethink of the bloc’s energy policy, including more support for nuclear power in order to reduce greenhouse gas emissions.
He will also push for an increase in the use of biofuels, restrictions on car speeds and fuel consumption and greater financial incentives for investing in energy-efficiency measures.
Elsewhere on the agenda, ministers will discuss the progress being made by three new member states – Hungary, Slovakia and the Czech Republic – towards euro entry.
They are also expected to back the European commission’s recommendations for tackling the UK’s budget deficit – despite chancellor Gordon Brown’s insistence that Brussels’ assessment is wrong.
A long-awaited agreement on extending the reduced-rate VAT scheme for labour intensive sectors is also expected, but French calls for the scheme to be extended to the restaurant sector are likely to be ignored.
National plans for boosting jobs and growth – the so-called Lisbon strategy – will also be discussed ahead of the commission’s initial report, due on Thursday.
The Ecofin meeting will, as usual, be preceded by the meeting of the 12 members of the eurogroup on Monday evening.
EU finance commissioner Joaquín Almunia is also expected to meet with Thierry Breton ahead of the eurogroup meeting to discuss France’s budget deficit.
Paris disagrees with Brussels’ assessment of its finances, claiming that the deficit will fall to 2.9 per cent in 2006, rather than the 3.6 per cent cited by Almunia.
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