FOR THE RECORD

Date: 05/10/00

29 September

Euro 11/Ecofin

THE aftermath of the 'no' vote in the Danish referendum on euro-zone membership dominated discussions at a meeting of EU finance ministers held the day after polling. But euro-zone ministers and European Central Bank President Wim Duisenberg played down the likely impact of the result on both the value of the euro and the Danish krone. Duisenberg told reporters that the ECB would be ready to support the krone, which remains part of the European Exchange Rate Mechanism, stressing that the ECB would “fully adhere” to its contract with Denmark to maintain an adjustable peg between the krone and the euro. Duisenberg “noted with satisfaction” the resolve of the Danish government and the national bank to adhere to a strong, stable exchange rate, adding: “From now on, it is business as usual.”

DANISH Finance Minister Marianne Jelved pledged continuity in the country's exchange rate policy, which ties the Danish krone to the euro. She said the country would continue to follow strong economic policies which would stand comparison with those in the euro zone. “Our part in Denmark is to follow economic policies just like the euro states or perhaps more disciplined than them,” she told reporters.

FRENCH Finance Minister Laurent Fabius said after the meeting that euro-zone members were satisfied with the previous week's coordinated central bank intervention to support the value of the euro against the US dollar. “The way in which it was done was definitely positive,” he said. “The results are undeniably successful.”

WHEN ministers from the UK, Denmark and Sweden joined their euro-zone counterparts for a meeting of the full Ecofin, broad 'political agreement' was reached on a planned directive to combat money laundering which would require lawyers, accountants and other professionals to report suspicious transactions to judicial authorities. The accord will have to be endorsed formally by EU ministers at a future meeting. Germany's Hans Eichel said he wanted to vote against imposing new obligations on professional groups because his country's constitution safeguarded the right to legal advice, but agreed to the measures after changes were made to the wording on the treatment of lawyers.

FINANCE ministers also discussed the crisis sparked by soaring petrol prices, which have reached a ten-year high. But they put off a decision on whether to release strategic oil stocks to force prices down. Fabius said ministers had agreed that the Spanish proposal to boost the oil supply was ripe for further debate. “We are not ruling out a decision for the future,” he said. Fabius added that ministers were agreed that the reduction of fuel taxes was not an appropriate response to high crude oil prices, adding that the Union hoped for a better dialogue with oil producers.

28 September

Justice and Home Affairs Council

HOME affairs ministers agreed proposals for a European fund for refugees following a last-minute climb down by Austria. Under the plan, €216 million will be distributed from EU coffers over the next five years to help member states set up and run facilities for refugees and deal with immigration crises. Vienna had threatened to jeopardise the release of the money for this year because it wanted a greater share of the cash. But Austria backed down after member states agreed to review the way the funding is distributed in three years' time.

MINISTERS agreed to give Europe's criminal intelligence agency the power to instigate investigations. Armed with its new authority, Europol will be able to ask member states to launch inquiries, and police in the country concerned will then be obliged to act or else give reasons why not. National police will also have to keep Europol informed of progress in such investigations.

THE Council looked at proposals to guarantee basic rights for victims of crime, but were unable to reach an agreement on a few issues, most notably the way victims would be compensated. Under the plans, victims of crime in the Union would have the right to be informed about the progress of prosecutions, claim compensation and, in certain cases, have their privacy protected. But some member states complain that the proposal would require compensation to be awarded in the criminal courts, whereas in many EU countries this is currently a civil matter.

COMMISSIONER António Vitorino presented plans for minimum standards in processing asylum applications. Ministers welcomed the proposals as a step towards a common EU asylum policy. They also held a debate on a French presidency paper on minimum standards for reception facilities for asylum applicants.