CAB128-94_A1b — Page 44

ic and

ONFIDEN

CONFIDENTIAL

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THE CHANCELLOR OF THE EXCHEQUER said that there had been a heavy agenda for the meeting of the Economic and Finance Council attended by the Economic Secretary, Mr Peter Lilley, on 19 June. The achievement of a satisfactory outcome was very much to his credit. Two measures had been agreed which together would complete the Single Market for banking and represented a major step in the achievement of a Single Market for financial Services generally. First, agreement had been reached on the econd Banking Co-ordination Directive under which a bank aurorised in one Member State could carry out business in all her Member States. An acceptable form of provision for rocity had also been negotiated. One particularly welcome deti in the Directive, in the mergers context, was the ceiling played on banks' holdings of commercial companies. Secondly the Solvency Ratios Directive, concerned with minimum standards of capital adequacy, had been agreed on a basis compatible with the earlier Basle agreements. A satisfactory exemption had been negotiated

Discount Houses and there had also been recognition of the special position of Gilt Edge Market Makers and Stock chage MoneyBrokers.

The outcome had been unsatisfactor the Germans who had in contrast achieved a derogation forging backed by non-residential mortgages limited to a threar period. In addition final agreement had been reached

On other issues the progress in relation

Directive dealing with Insider Trading. mission made a satisfactory statement on fud and it seemed reasonable to expect that the conclusions, covering all the key points, tabled by the Presidency would to an echo at the Madrid European Council. A useful agent had also been reached on the procedures for carrying forwabwork on fiscal frontiers. The Council had rejected a Spanis proposal for a European Guarantee Fund. The debt problem was outside Community competence and discussions should be carried forward in the Group of Seven and the International Monetary Fun Pinally agreement had been reached on the reweighting of the which would now include the peseta and the escudo.

AL

Internal Market Council 14 June

the halfway

THE FOREIGN AND COMMONWEALTH SECRETARY id that the Spanish Presidency had successfully brought to a conasto more than 60 Single Market measures. The Community was now mark in the White Paper programme. At its me the Internal Market Council had taken final des Public Works Directive and on the framework for public authorities with the Community's rules

purchasing.

There had been further progress

on 14 June

s on the iance by public

the new

approach to standards. Finally agreement had beek formally completed on the Units of Measurement Directive, which

accepted the case put retention of the mile and

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forward by the United Kingd the pint.

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CONFIDENTIAL

IDENTIAL

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