European Council
Sir Peter Mills
asked the Prime Minister whether she will make a statement following the meeting of the European Council in Brussels on 21 and 22 March.
The Prime Minister
I attended the European Council in Brussels on 21–22 March with my right hon. Friend Francis Pymthe Secretary of State for Foreign and Commonwealth Affairs. Copies of the conclusions have been placed in the Library.
The Council took place against the background of the European monetary system realignment at which my right hon. and learned Friend Sir Geoffrey Howethe Chancellor of the Exchequer played a distinctive role.
The Council discussed the Community strategy for re-establishing economic stability and encouraging productive activity without renewed inflation. It agreed on the need for effective action to improve employment prospects for young people and called for a report by June on the progress achieved by the Community and its member states.
In a preliminary discussion of the forthcoming economic summit in Williamsburg it was agreed that the Community should make a substantial effort to support the recovery of the international economy which is now appearing. [column 458]
The Council judged that falling oil prices could make a positive contribution to such recovery provided excessive changes in prices were avoided and efforts to conserve energy and develop new sources were not impaired.
The Council heard a report of recent discussions between the Community and the United States on trade in agricultural products and noted arrangements for these discussions to continue.
Progress was made on removing the obstacles in the way of Spanish and Portuguese accession to the Community, notably in respect of arrangements for olive oil, fruit and vegetables. Agriculture Ministers have been asked to take early decisions on these matters.
On the budget, it was agreed that the Commission would now make specific proposals about the long-term future financing of the Community to include a lasting solution to the British budget problem. The Foreign Affairs Council will report its conclusions to the next meeting of the European Council in June and will also then report its decisions on the arrangements for the interim period until the lasting solution can be implemented. Provision for refunds for the 1983 budget year will be incorporated in the draft Community budget for 1984.
With regard to the middle east, it was agreed that the parties must seize the present opportunity to achieve the urgent objectives of the withdrawal of all foreign troops from the Lebanon and a resumption of negotiations for a comprehensive peace settlement. A declaration by the Palestinian people and the PLO that they were in favour of peace negotiations would be a major step forward, as would a commitment by Israel to refrain from enlarging existing settlements or creating new ones in the occupied territories.