§ Mr. Grylls
asked the Chancellor of the Exchequer if he will make a statement about the meeting of the European Community Finance Council in Brussels on 12 July.
§ Sir Geoffrey Howe
I represented the United Kingdom at this Council. We discussed the Commission's papers on investment and on budget discipline. Most Ministers agreed with my view and that expressed in the 467W Commission's paper that our most important task was to promote a favourable macroeconomic climate and increase profitability by seeking success on inflation and interest rates—all of which necessitate very strict control of budget deficits.
The Council also agreed to adopt the fifth medium-term economic policy programme, had a brief exchange of views on the economic situation in the Community and discussed the draft seventh company law directive on harmonisation of consolidated accounts.
It was agreed that investment and the seventh company law directive should be considered further at our October meeting.