Headway made in Luxemburg

Press, Volume CXII, Issue 33062, 1 November 1972, Page 17

Headway made in Luxemburg

fN.Z.P.A.-Reuter—Copyright)

LUXEMBURG, October 31.

The nine Ministers of Finance of the enlarged European Common Market are half-way towards their goal of a joint package to fight inflation.

At a meeting which lasted until shortly before midnight, they reached agreement on three of the principle elements contained in the draft resolution submitted to them by the E.E.C. Commission, but the points on which accord was reached were the less controversial ones, and some tough bargaining is expected at today’s resumed session.

The three key issues already settled cover: price increases for next year, with a slow-down in the rate from 6 to 4 per cent; limiting the growth of the money supply of member-States; and keeping increases in Government spending under control. The issues still to be determined include surveillance of price increases, and trade measures to facilitate imports of industrial goods into the Community. The commission has also proposed measures to take more manufactured imports from developing countries, and to ease restrictions on imports of beef and potatoes, which are in short supply. What has been agreed so far corresponds closely to West German and French wishes. Italy has expressed

reserve, and wants specific reference made to countries with unemployment problems being able to deviate from the money supply and public spending norms now fixed. On the trade measures, Mr Valery Giscard d’Estaing, of France, and his West German counterpart, Mr Helmut Schmidt, differ, the French Minister being less keen on tariff cuts. The British Minister for Europe (Mr Geoffrey Rippon) told journalists last night that Britain did not consider herself bound by the agreements reached, which, he said basically concerned targets set for the Community of Six. Mr Rippon, who is deputising for the Chancellor of the Exchequer (Mr Anthony Barber) added that he would inform the Six in more detail of Britain’s attitude at today’s session. The nine Ministers of Agriculture are also meeting again today. They made little progress in their talks yesterday on reforms in the beef and fruit and vegetables sectors.

Britain opposes the measures proposed, and her Minister, Mr James Prior, will give her views today.