f , COMMISSION OF THE EUROPEAN COMMUNITIES 
COM(93) 617 final - SYN 466 - 467 
Brussels, 22 November 1993 
1 * ,^/iff SECONDARY LEGISLATION FOR THE SECOND STAGE 
™ I " i OF ECONOMIC AND MONETARY UNION 
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Ést'ï Amended proposal for a 
COUNCIL REGULATION (EC) SYN 466 
specifying definitions for the application of the prohibitions 
referred to in articles 104 and 104B(1) of the Treaty 
Amended proposal for a 
COUNCIL REGULATION (EC) SYN 467 
specifying definitions for the application of the prohibition of 
privileged access referred to in article 104a of the Treaty 
Amended proposal for a 
COUNCIL REGULATION (EC) 
on the application of the Protocol on the excessive deficit procedure 
annexed to the Treaty establishing the European Community 
Amended proposal for a 
COUNCIL DECISION 
B iliïl on the statistical data to be used for the determination of the key for 
the financial resources of the European Monetary Institute 
Amended proposal for a 
COUNCIL DECISION 
on the consultation of the European Monetary Institute by the authorities 
of the Member States on draft legislative provisions 
(presented by the Commission pursuant to Article 189 A (2) of the EC-Treaty) 
v. 
Explanatory Memorandum, 
Following an invitation from the European Council held on 21 and 22 June 1993 at 
Copenhagen the Commission transmitted draft proposals for secondary legislation for 
the second stage of Economic and Monetary Union to the Council and the European 
Parliament in July and September (docs. COM(93)371 final - SYN 466 - SYN 467 of 
22.7.93 and COM(93)436 final of 22.9.93). 
These draft proposals were confirmed as formai proposals of the Commission with 
effect from 1 November 1993 by letters from Vice-President Christophersen to the 
President of the Council and the President of the European Parliament, 
The European Parliament has delivered its opinion on 16 November. Subsequently, 
the Commission has accepted a number of amendments proposed by the European 
Parliament which are incorporated in the present amended proposals. The 
Commission has also taken account of work done in the Council. 
-p>-
Amended proposal for a 
COUNCIL REGULADQNIEC) SYN466 
specifying definitions for the application of the prohibitions 
referred to in articles 104 and 104B(1) of the Treaty 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the European Community, and in particular 
Article 104B(2) thereof, 
Having regard to the proposal from the Commission (*), 
In co-operation with the European Parliament (*), 
Whereas Articles 104 and 104B(1) of the Treaty are directly applicable; whereas the terms 
featuring in Articles 104 and 104B(1) may be specified, if necessary; 
Whereas the terms "overdraft facilities" and "other types of credit facility" used in Article 104 of 
the Treaty should be defined, particularly with reference to the treatment of claims existing at 
1 January 1994; 
Whereas it is desirable that the national central banks participating in the third stage of Economic 
and Monetary Union should enter such Union having on their balance sheets claims negotiable 
under market conditions, in particular to give the required flexibility to the monetary policy of the 
European System of Central Banks and to permit a standard contribution from the various national 
central banks participating in monetary union to the monetary income to be distributed among 
them; 
Whereas the central banks which, after 1 January 1994, still hold claims against the public sector 
which are non-negotiable or are subject to conditions which are not market conditions should be 
authorized subsequently to convert such claims into negotiable fixed-maturity securities under 
market conditions; 
Whereas paragraph 11 of the Protocol on certain provisions relating to the United Kingdom of 
Great Britain and Northern Ireland stipulates that the Government of the United Kingdom may 
maintain its "ways and means" facility with the Bank of England if and so long as the 
* The initial draft proposal (COM(93)371 final - SYN466 - SYN 467 of 22.7.93 was confirmed as a forma! proposa! with 
. effect from 1.11.1993 
(t) OJ C 
(%) OJ C and Decision of (not yet published in the Official Journal). 
United Kingdom does not move to the third stage; whereas it is appropriate to make provision for 
the conversion of the amount of this facility into marketable debt at a fixed maturity and on market 
terms if the United Kingdom moves to stage three of EMU; 
Whereas the Protocol on Portugal lays down that "Portugal is hereby authorized to maintain the 
facility afforded to the Autonomous Regions of the Azores and Madeira to benefit from an 
interest-free credit facility with the Banco de Portugal under the terms established by existing 
Portuguese law"; and that "Portugal commits itself to pursue its best endeavours in order to put an 
end to the abovementioned facility as soon as possible"; 
Whereas Member States must take appropriate measures to ensure that the prohibitions referred to 
in Article 104 of the Treaty are applied effectively and fully; whereas, in particular, purchases 
made on the secondary market must not be used to circumvent the objective of that Article; 
Whereas, within the limits laid down in this Regulation, the direct acquisition by the central bank 
of one Member State of marketable debt instruments issued by the public sector of another 
Member State does not help to shield the public sector from the discipline of market mechanisms 
where such purchases are conducted for the sole purpose of managing foreign exchange reserves; 
Whereas, notwithstanding the role assigned to the Commission under Article 169 of the Treaty, it 
is for the European Monetary Institute and, thereafter, for the European Central Bank, pursuant to 
Article 109F(9) and Article 180 of the Treaty, to ensure that national central banks honour the 
obligations laid down by the Treaty; 
Whereas intra-day credits by the central banks may assist the smooth operation of payment 
systems and whereas, therefore, intra-day credits in the public sector are compatible with the 
objectives of Article 104 of the Treaty, provided that no extension to the following day is possible; 
Whereas the function of fiscal agent exercised by the central banks should not be impeded; 
whereas, even if clearing by the central banks of cheques issued by third parties for the public 
sector's account may occasionally involve a credit, Article 104 of the Treaty should not be 
regarded as prohibiting such operations, provided that they do not result overall in a credit for the 
public sector; 
Whereas the holding by the central banks of coins issued by the public sector and credited to the 
public sector constitutes an interest-free form of credit for the public sector; whereas, however, if 
only limited amounts are involved, this practice does not interfere with the principle of Article 104 
of the Treaty and whereas, therefore, in view of the difficulties which would arise from total 
prohibition of this form of credit, if may be permitted within the limits laid down in this 
Regulation; 
Whereas, following unification, the Federal Republic of Germany has particular difficulty in 
complying with the limit set on such assets; whereas it is appropriate in those circumstances to 
authorize a higher percentage for a limited period; 
Whereas the financing by the central banks of obligations falling upon the public sector vis-à-vis 
the International Monetary Fund or resulting from the implementation of the medium-term 
financial assistance facility set up within the Community results in foreign claims which have all the 
characteristics of reserve assets; whereas it is, therefore, appropriate to authorize them; 
Whereas public undertakings are covered by the prohibition in Article 104 and Article 104B(1); 
whereas they are defined in Commission Directive 80/723/EEC of 25 June 1980 on the 
transparency of financial relations between Member States and public undertakings ( ), 
( ) OJ L 195, 29.7.1980, p. 35. Directive as last amended by Commission 
Directive 93/84/EEC (OJ L 254, 12.10.1993, p. 16). 
HAS ADOPTED THIS REGULATION: 
Article 1 
1. For the purposes of Article 104 of the Treaty: 
(a) "overdraft facilities" means any provision of funds to the public sector resulting or likely to 
result in a debit balance; 
(b) "other type of credit facility" means 
(i) any claim against the public sector existing at 1 January 1994, except for 
fixed-maturity claims acquired before that date, 
(ii) any financing of the public sector's obligations vis-à-vis third parties, 
(iii) without prejudice to Article 104(2) of the Treaty, any transaction with the public 
sector resulting or likely to result in a claim against that sector. 
2. The following shall not be regarded as "debt instruments" within the meaning of Article 104 of 
the Treaty: securities acquired from the public sector to ensure the conversion into negotiable 
fixed-maturity securities under market conditions of: 
- fixed-maturity claims acquired before 1 January 1994 which are not negotiable or not under 
market conditions, provided that the maturity of the securities is not subsequent to that of the 
aforementioned claims; 
- the amount of the "ways and means" facility maintained by the United Kingdom Government 
with the Bank of England until the date, if any, on which the United Kingdom moves to Stage 
Three of EMU. 
Article 2 
1. During Stage Two of EMU, purchases by the national central bank of one Member State of 
marketable debt instruments issued by the public sector of another Member State shall not be 
considered direct purchases within the meaning of Article 104 of the Treaty, provided that such 
purchases are conducted for the sole purpose of managing foreign exchange reserves. 
2. During Stage Three of EMU, the following purchases conducted for the sole purpose of 
managing foreign exchange reserves shall not be considered direct purchases within the meaning of 
Article 104 of the Treaty: 
- purchases by the national central bank of a Member State not participating in Stage Three of 
EMU, from the public sector of another Member State, of marketable debt instruments of the 
latter; 
- purchases by the European Central Bank or the national central bank of a Member State 
participating in Stage Three of EMU, from the public sector of a Member State not participating 
in Stage Three, of marketable debt instruments of the latter. 
Article 3 
For the purposes of this Regulation, "public sector" means Community institutions or bodies, 
central governments, regional, local or other public authorities, other bodies governed by public 
law or public undertakings of Member States. 
"National central banks" means the central banks of the Member States and the Luxembourg 
Monetary Institute. 
Article 4 
Intra-day credits by the ECB or the national central banks to the public sector shall not be 
considered as a credit facility within the meaning of Article 104 of the Treaty, provided that they 
remain limited to the day and that no extension is possible. 
Article 5 
Where the European Central Bank or the national central banks receive from the public sector, for 
collection, cheques issued by third parties and credit the public sector's account before the drawee 
bank has been debited, this operation shall not be considered as a credit facility within the meaning 
of Article 104 of the Treaty if a fixed period of time corresponding to the normal period for the 
collection of cheques by the central bank of the Member State concerned has elapsed since receipt 
of the cheque, provided that any float which may arise is exceptional, is of a small amount and 
averages out in the short term. 
Article 6 
The holding by the European Central Bank or the national central banks of coins issued by the 
public sector and credited to the public sector shall not be regarded as a credit facility within the 
meaning of Article 104 of the Treaty where the amount of these assets remains at less than 10% of 
the coins in circulation. 
Until 31 December 1996, this figure shall be 15% for Germany. 
Article 7 
The financing by the European Central Bank or the national central banks of obligations falling 
upon the public sector vis-à-vis the International Monetary Fund or resulting from the 
implementation of the medium-term financial assistance facility set up by Regulation (EEC) 
No 1969/88 (*) shall not be regarded as a credit facility within the meaning of Article 104 of the 
Treaty. 
Article 8 
1. For the purposes of Articles 104 and 104b(l) of the Treaty, "public undertaking" shall be 
defined as any undertaking over which the public authorities may directly or indirectly exercise a 
dominant influence by virtue of their ownership of it, their financial participation therein or the 
rules which govern it. 
A dominant influence on the part of the public authorities shall be presumed when these 
authorities, directly or indirectly in relation to an undertaking: 
(a) hold the major part of the undertaking's subscribed capital; 
(b) control the majority of the votes attaching to shares issued by the undertaking; or 
(c) can appoint more than half of the members of the undertaking's administrative, managerial or 
supervisory body. 
2. For the purposes of Articles 104 and 104b(l) of the Treaty, the European Central Bank and the 
national central banks do not form part of the public sector. 
Article 9 
This Regulation shall enter into force on 1 January 1994. 
This Regulation shall be binding in its entirety and directly applicable in all Member States 
Done at Brussels, For the Council 
The President 
( ) Council Regulation (EEC) No 1969/88 of 24 June 1988 establishing a single 
facility providing medium-term financial assistance for Member States' 
balances of payments (OJ L 178, 8.7.1988, p. 1). 
-1 
Amended proposal for a 
COUNCIL REGULATION (EC) SYN 467 
specifying definitions for the application of the prohibition of 
privileged access referred to in article 104a of the Treaty 
THE COUNCIL OF THE EUROPEAN UNION 
Having regard to the Treaty establishing the European Community, and in particular Article 104a(2) 
thereof, 
Having regard to the proposal from the Commission ('), 
In co-operation with the European Parliament (*), 
Whereas the prohibition of privileged access to financial institutions, as laid down in Article 104a of 
the Treaty, forms an essential element of the submission of the public sector in its financing 
operations to the discipline of the market mechanism and so makes a contribution to the 
strengthening of budgetary discipline; whereas, moreover, it places the Member States on an equal 
footing as regards public sector access to financial institutions; 
Whereas the Council must specify definitions for the application of such prohibition; 
Whereas the Member States and the Community must act with due regard for the principle of an 
open market economy in which there is free competition; 
Whereas, in particular, this Regulation cannot affect the methods for organizing markets complying 
with that principle; 
Whereas this Regulation does not seek to interfere with any operation of public financial institutions 
complying with the same principle; 
Whereas Article 104a of the Treaty prohibits measures establishing privileged access; whereas the 
types of acts concerned by this prohibition should be specified; whereas the commitments freely 
made by financial institutions in the framework of contractual relations unquestionably cannot be 
affected; 
* the initial draft proposal (Doc.(93)371 final - SYN 466-SYN467 of 22.7.93) was confirmed as 
formal proposal with effect from 1.11.1993. 
(*) OJ c 
(/L) OJ C and Decision of (not yet published in the Official 
Journal). 
S 
Whereas the same Article provides that prudential considerations may justify departure from the 
principle of this prohibition; whereas laws, regulations or administrative actions may not, however, 
under the cover of prudential consideration, be used to establish disguised privileged access; 
Whereas public undertakings are covered by the same prohibition; whereas they are defined in 
Commission Directive 80/723/EEC of 25 June 1980 on the transparency of financial relations 
between the Member States and public undertakings, ( ); 
Whereas, for reasons of monetary policy, financial institutions and, in particular, credit institutions 
may be obliged to hold claims against the European Central Bank and/or national central banks; 
Whereas the European Central Bank and national central banks may not, as public authorities, take 
measures establishing, privileged access; whereas the rules on mobilization or pledging of debt 
instruments enacted by the European Central Bank or by national central banks must not be used as a 
means of circumventing the prohibition of privileged access; 
Whereas, in order to avoid any circumvention of the prohibition, the definitions in Community law of 
the various types of financial institution should be supplemented by a reference to those institutions 
engaging in financial activities which have not yet been harmonized at Community level, such as, for 
instance, branches of third-country establishments, holding and factoring companies, unco-ordinated 
undertakings for collective investment in transferable securities (UCITS), institutions for retirement 
provision, etc., 
( ) OJ L 195, 29.7.1980, p. 35. as last amended by Commission Directive 
93/84/EBC 
(OJ L 254, 12.10.1993, p. 16). 
HAS ADOPTED THIS REGULATION: 
Article 1 
1. For the purposes of Article 104a of the Treaty, "any measure establishing privileged access" shall 
be defined as any law, regulation or any other binding legal instrument adopted in the exercise of 
public authority which: 
- obliges financial institutions to acquire or to hold liabilities of Community institutions or 
bodies, central governments, regional, local or other public authorities, other bodies governed 
by public law or public undertakings of Member States (hereinafter referred to as "public 
sector"), or 
- confers tax advantages which may benefit only financial institutions or financial advantages 
which do not comply with the principles of a market economy, in order to encourage the 
acquiring or the holding by those institutions of such liabilities. 
2. Privileged access shall not be regarded as being established by those measures which give rise to: 
- obligations for funding social housing under special terms such as, inter alia, an obligation to 
centralize funds with public financial institutions, when the funding terms prevailing for the 
public sector are identical to those for funding of the same nature granted to private borrowers 
for the same purposes; 
- the obligation to centralize funds with a public credit institution, insofar as such a constraint is 
an integral part, as at 1 January 1994, of the organization of a particular network of credit 
institutions or of specific savings arrangements designed for households and intended to 
provide the whole of the network or the specific arrangements with financial security. The use 
of such centralized funds must be determined by the management bodies of the public credit 
institution concerned and comply with the principle of a market economy where there is free 
competition; 
- obligations to finance the repair of disaster damage, provided that the conditions for financing 
repairs are not more favourable when damage is sustained by the public sector than when it is 
sustained by the private sector. 
Article 2 
For the purposes of Article 104a of the Treaty, "prudential considerations" shall be those which 
underlie national laws, regulations or administrative actions based on, or consistent with, EC law and 
r Ac 
designed to promote the soundness of financial institutions so as to strengthen the stability of the 
financial system as a whole and the protection of the customers of those institutions. 
Article 3 
1. For the purposes of Article 104a of the Treaty, "public undertaking" shall be defined as any 
undertaking over which the State or other regional or local authorities may exercise directly or 
indirectly a dominant influence by virtue of their ownership of it, their financial participation therein 
or the rules which govern it. 
A dominant influence on the part of the State or other regional or local authorities shall be presumed 
when these authorities, directly or indirectly in relation to an undertaking: 
(a) hold the major part of the undertaking's subscribed capital; 
(b) control the majority of the votes attaching to shares issued by the undertaking; or 
(c) can appoint more than half of the members of the undertaking's administrative, managerial or 
supervisory body. 
2. Without prejudice to their obligation as public authorities not to take measures establishing 
privileged access within the meaning of Article 104a of the Treaty, the European Central Bank and 
the national central banks and shall not, for the purposes of this Article, be considered as forming 
part of the public sector. 
3. "National central banks" means the central banks of the Member States and the Luxembourg 
Monetary Institute. 
Article 4 
1. For the purposes of Article 104a of the Treaty, "financial institutions" means: 
- credit institutions as defined in the first indent of Article 1 of Directive 77/780/EEC ( ), 
insurance undertakings as defined in Article 1, point (a) of Directive 92/49/EEC ( ), 
assurance undertakings as defined in Article 1, point (a) of Directive 92/96/EEC (*), 
( ) Council Directive 77/780/EEC of 12 December 1977 on the co-ordination of 
the laws, regulations and administrative provisions relating to the taking 
up and pursuit of the business of credit institutions (OJ L 322, 
17.12.1977, p. 30). Directive last amended by Directive 89/646/EEC (OJ L 
386, 30.12.1989, p. 1). 
( ) Council Directive 92/49/EEC of 18 June 1992 on the co-ordination of laws, 
regulations and administrative provisions relating to direct insurance 
other than life insurance (third Directive on insurance other than life 
insurance) (OJ L 228, 11.8.1992, p. 1). 
UCITS as defined in Article 1(2) of Directive 85/611/EEC (*), 
investment firms as defined in Article 1(2) of Directive 93/22/EEC (*), 
- other undertakings the activities of which are simitar to those of the undertakings referred to in 
the previous indents or the principal activity of which is to acquire holdings of financial assets 
or to transform financial claims. 
2. The following institutions do not form part of the financial institutions defined in paragraph 1 : 
the European Central Bank and national central banks, 
Post Office financial services when they form part of the general government sector defined in 
accordance with the European System of Integrated Economic Accounts or when their main 
activity is to act as the financial agent of government, and 
the institutions which are part of the general government sector defined in accordance with the 
European System of Integrated Economic Accounts or the liabilities of which correspond 
completely to a public debt. 
Articles 
This Regulation shall enter into force on 1 January 1994. 
This Regulation shall be binding in its entirety and directly applicable in all Member States. 
Done at Brussels, 
For the Council 
The President 
( ) Council Directive 92/96/EEC of 10 November 1992 on the co-ordination of 
laws, regulations and administrative provisions relating to direct life 
assurance (3rd Directive on life insurance)(OJ L 360, 9.12.1992, p. 1). 
( ) Council Directive 85/611/EEC of 20 December 1985 on the co-ordination of 
laws, regulations and administrative provisions relating to undertakings 
for collective investment in transferable securities (UCITS)(OJ L 375, 
31.12.1985, p. 3). Directive amended by Directive 88/220/EEC (OJ L 100, 
19.4.1988, p. 31). 
( ) Council Directive 93/22/EEC of 10 May 1993 on investment services in the 
securities field (OJ L 141, 11.6.1993, p. 27). 
At _a 
Amended proposal for a 
COUNCIL HfiGULATON (EC) 
on the application of the Protocol on the excessive deficit procedure 
annexed to the Treaty establishing the European Community 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the European Community, and in particular the third 
subparagraph of Article 104c( 14) thereof, 
Having regard to the proposal from the Commission (*), 
Having regard to the Opinion of the European Parliament (*), 
Whereas the definitions of "government", "deficit" and "investment" are laid down in the Protocol 
on the excessive deficit procedure by reference to the European System of Integrated Economic 
Accounts (ESA) ('); whereas precise definitions referring to the classification codes of ESA are 
required; whereas these definitions may be subject to revision in the context of the necessary 
harmonization of national statistics or for other reasons; whereas any revision of ESA will be 
decided by the Council in accordance with the rules on competence and procedure laid down in 
the Treaty; 
Whereas the definition of "debt" laid down in the Protocol on the excessive deficit procedure 
needs to be amplified by a reference to the classification codes of ESA; 
Whereas Council Directive 89/130/EEC, Euratom of 13 February 1989 on the harmonization of 
the compilation of gross national product at market prices (*) provides an adequate, detailed 
definition of gross domestic product at market prices; 
Whereas, under the terms of the Protocol on the excessive deficit procedure, the Commission is 
required to provide the statistical data to be used in that procedure; 
Whereas detailed rules are required to organize the prompt and regular reporting by the 
Member States to the Commission of their planned and actual deficits and of the levels of their 
debt; 
The initial draft proposal (Doc.(93)371 final - SYN 466-SYN 467 of 22.7.93) was confirmed as formal proposal with 
effect from 1.11.1993. 
(I)OJC 
(v) Opinion delivered on (not yet published in the Official Journal). 
( ^Statistical Office of the European Communities, European System of Integrated Economic Accounts ESA, second edition. 
OOJL49, 21.2.19X9, p. 26. 
4f 
Whereas, pursuant to Article 104c(2) and (3) of the Treaty, the Commission is to monitor the 
development of the budgetary situation and of the stock of government debt in the Member States 
and to examine compliance with budgetary discipline on the basis of criteria relating to 
government deficit and government debt; whereas, if a Member State does not fulfil the 
requirements under one or both criteria, the Commission must take into account all relevant 
factors; whereas the Commission has to examine whether there is a risk of an excessive deficit in a 
Member State, 
Af 
HAS ADOPTED THIS REGULATION: 
Section 1 
Definitions 
Article 1 
1. For the purposes of the Protocol on the excessive deficit procedure and of this Regulation, the 
terms given in the following paragraphs are defined according to the European System of 
Integrated Economic Accounts (ESA). The codes in brackets refer to ESA, second edition. 
2. "Government" means the sector of general government (S60), that is central government (S61), 
local government (S62) and social security funds (S63), to the exclusion of commercial 
operations, as defined in ESA. 
The exclusion of commercial operations means that the sector of general government (S60) 
comprises only institutional units producing non-market services as their main activity. 
3. "Government deficit (surplus)" means the net borrowing (net lending) (N5) of the sector of 
general government (S60), as defined in ESA. The interest comprised in the government deficit is 
the sum of interest (R41), as defined in ESA. 
4. "Government investment" means the gross fixed capital formation (P41) of the sector of 
general government (S60), as defined in ESA. 
5. "Government debt" means the total gross debt at nominal value outstanding at the end of the 
year of the sector of general government (S60), with the exception of those liabilities the 
corresponding financial assets of which are held by the sector of general government (S60). 
Government debt is constituted by the liabilities of general government in the following categories: 
Currency and Deposits (F20 and F30), Bills and Short-term Bonds (F40), Long-term Bonds (F50), 
Other Short-term Loans (F79) and Other Medium and Long-term Loans (F89) as defined in ESA. 
The nominal value of a liability outstanding at the end of the year is the face value. 
The nominal value of an index-linked liability corresponds to its face value adjusted by the 
index-related capital uplift accrued to the end of the year. 
Liabilities denominated in foreign currencies shall be converted into the national currency at the 
representative market exchange rate prevailing on the last working day of each year. 
<U 
Article 2 
Gross domestic product means gross domestic product at market prices (GDPmp), as defined in 
Article 2 of Directive 89/130/EEC, Euratom. 
Article 3 
1. Planned government deficit figures mean the figures established for the current year by the 
Member States consistent with the most recent decisions of their budgetary authorities. 
2. Actual government deficit and government debt level figures mean estimated, provisional, 
half-finalized or final results for a past year. 
Section 2 
Rules and coverage of reporting 
Article 4 
1. As from the beginning of 1994, Member States shall report to the Commission their planned 
and actual government deficits and levels of government debt twice a year, the first time before 
1 March of the current year (year n) and the second time before 1 September of year n, 
2. Before 1 March of year n, Member States: 
- shall report to the Commission their planned government deficit for year n, an up-to-date 
estimate of their actual government deficit for year n-1 and their actual government deficits 
for years n-2, n-3 and n-4; 
shall simultaneously provide the Commission for years n, n-1 and n-2 with their 
corresponding public accounts budget deficits according to the definition which is given 
most prominence nationally and with the figures which explain the transition between this 
public accounts budget deficit and their government deficit. The figures explaining this 
transition which are provided to the Commission shall include, in particular, the figures for 
net borrowing of the subsectors S61, S62 and S63; 
- shall report to the Commission their estimate of the level of actual government debt at the 
end of year n-1 and their levels of actual government debt for years n-2, n-3 
and n-4; 
- shall simultaneously provide the Commission for years n-1 and n-2 with the figures which 
It 
explain the contributions of their government deficit and the other relevant factors 
contributing to the variation in the level of their government debt. 
3. Before 1 September of year n, Member States shall report to the Commission: 
- their updated planned government deficit for year n and their actual government deficits for 
years n-1, n-2, n-3 and n-4 and shall comply with the requirements of the second indent of 
paragraph 2; 
- their actual level of government debt for years n-1, n-2, n-3 and n-4, and shall comply with 
the requirements of the fourth indent of paragraph 2. 
4. The figures for the planned government deficit reported to the Commission in accordance with 
paragraphs 2 and 3 shall be expressed in national currency and in budget years. 
The figures for actual government deficit and actual government debt level reported to the 
Commission in accordance with paragraphs 2 and 3 shall be expressed in national currency and in 
calendar years, with the exception of the updated estimates for year n-1, which may be expressed 
in budget years. 
Where the budget year differs from the calendar year, Member States shall also report to the 
Commission their figures for actual government deficit and actual government debt level in budget 
years for the two budget years preceding the current budget year. 
Article 5 
Member States shall, in accordance with the procedures laid down in Article 4(1), (2) and (3), 
provide the Commission with the figures for their government investment expenditure and interest 
expenditure. 
Article 6 
Member States shall provide the Commission with a forecast of their gross domestic product for 
year n and the actual amount of their gross domestic product for years n-1, n-2, n-3 and n-4, under 
the same liming conditions as those indicated in Article 4(1). 
Article 7 
In the event of a revision of ESA to be decided on by the Council in accordance with the rules on 
competence and procedure laid down in the Treaty, the Commission shall introduce the new 
\t 
references to ESA into Articles 1 and 4. 
Article 8 
This Regulation shall enter into force on 1 January 1994. 
This Regulation shall be binding in its entirety and directly applicable in all Member States. 
Done at Brussels, 
For the Council 
The President 
/fl _ao 
Amended proposal for a 
COUNCIL DECISION 
on the statistical data to be used for the determination of the key for 
the financial resources of the European Monetary Institute 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the European Community, and in particular Article 16.1 
and 16.2 of the Protocol on the Statute of the European Monetary Institute annexed thereto, 
Having regard to the proposal from the Commission ( ), 
Having regard to the Opinion of the European Parliament (fy, 
Having regard to the opinion of the Committee of Governors, 
Having regard to the opinion of the Monetary Committee, 
Whereas the European Monetary Institute, hereinafter referred to as "EMI", will be established on 
1 January 1994; 
Whereas the EMI will be endowed with its own resources; 
Whereas the size of the resources of the EMI will be determined by the Council of the EMI; 
Whereas the resources of the EMI will be provided out of contributions by national central banks 
in accordance with the key referred to in Article 16.2 of the Protocol on the Statute of the EMI; 
Whereas the key for the financial resources of the EMI will be determined before the start of the 
second stage; 
Whereas the statistical data to be used for the determination of the key will be provided by the 
Commission in accordance with the rules adopted by the Council; 
Whereas the rules adopted by the Council in this Decision do not constitute a precedent for other 
legal acts which the Council could adopt in other areas; 
The initial draft proposal (Doc.(93)371 final - SYN 466 - SYN 467 of 22.7.93) was confirmed as formal proposal with 
effect from 1.11.1993. 
( ) O J C 
(fJ) Opinion delivered on (not yet published in the 
Official Journal). 
2/1 
Whereas the nature of and sources for the data to be used and the method of calculation of the key 
must be defined; 
Whereas Council Directive 89/130/EEC, Euratom of 13 February 1989 on the harmonization of 
the compilation of gross national product at market prices () introduces a procedure for the 
adoption by Member States of data on the gross domestic product at market prices, whereas the 
member States shall take all the necessary measures to ensure that these data ae forwarded to the 
Commission. 
(1) OJ L 49, 21.2.1989, p. 26 
HAS DECIDED AS FOLLOWS: 
Article 1 
The statistical data to be used for the determination of the key for the contributions by the national 
central banks to the financial resources of the EMI shall be provided by the Commission in 
accordance with the rules laid down in the following Articles. 
Article 2 
Population and Gross Domestic Product at market prices, hereinafter referred to as "GDP mp", 
shall be defined according to the European System of Integrated Economic Accounts (ESA) in 
force. GDP mp shall mean GDP mp as defined in Article 2 of Directive 89/130/EEC, Euratom. 
Article 3 
The data on population shall be taken for the year 1992. The mean of the total population over 
the course of the year shall be used in accordance with the ESA recommendation. 
Article 4 
The data on GDP mp shall be taken for each of the years 1987 to 1991. The data on GDP mp for 
each Member State shall be expressed in the national currency at current prices. 
Article 5 
The data on population shall be collected by the Commission (Eurostat) from Member States. 
Article 6 
The data on GDP mp for the years 1988 to 1991 shall result from the application of 
Directive 89/130/EEC, Euratom. The data for 1987 shall be collected by the Commission 
(Eurostat) from Member States, which shall make them consistent with the 1988 to 1991 data on 
GDP mp. 
*i 
Article 7 
1. The share of a Member State in the population of the Community shall be its share in the sum 
of the population of the Member States, expressed as a percentage. 
2. The GDP mp data for each year and each Member State expressed in national currencies shall 
be converted into figures expressed in ecus. The exchange rate used for this purpose shall be the 
average of the exchange rates for all working days in a year. The daily exchange rate shall be the 
rate calculated by the Commission and published in the "C" series of the Official Journal of the 
European Communities. 
3. The share of a Member State in GDP mp of the Community shall be its share in the sum of 
GDP mp of the Member States over five years, expressed as a percentage. 
Article 8 
The weighting of a national central bank in the key shall be the arithmetic mean of the shares of the 
Member State concerned in the population and in the GDP mp of the Community. 
Article 9 
The various steps of calculation shall use sufficient digits to ensure their accuracy. The weighting 
of national central banks in the key shall be expressed to four decimal places. 
Article 10 
The data referred to in this Decision shall be communicated by the Commission to the Committee 
of Governors of the Central Banks of the Member States before 1 January 1994. 
Done at Brussels, 
For the Council 
The President 
M - ^ 
Amended proposal for a 
POTINCTL DECISION 
on the consultation of the European Monetary Institute by the authorities 
of the Member States on draft legislative provisions 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the European Community, and in particular Article 109F(6) 
thereof, and Article 5(3) of the Protocol on the Statute of the European Monetary Institute annexed 
to this Treaty, 
Having regard to the proposal from the Commission ( ), 
Having regard to the Opinion of the European Parliament (*), 
Having regard to the opinion of the Committee of Governors, 
Whereas the European Monetary Institute, hereafter referred to as "EMI", is to be established on 
1 January 1994; 
Whereas the Treaty stipulates that the authorities of the Member States shall consult the EMI on any 
draft legislative provision within its field of competence; whereas it is for the Council to set the limits 
and the conditions of such consultation; 
Whereas this obligation on the authorities of the Member States to consult the EMI shall not 
prejudice the responsibility of national authorities for the matters which are the subject of such 
provisions; 
Whereas this Decision does not concern decisions taken by national authorities in the context of the 
implementation of monetary policy; 
Whereas consultation of the EMI must not unduly lengthen procedures for adopting legislative 
provisions in the Member States; whereas the time limits within which the EMI must deliver its 
opinion must, nevertheless, enable it to examine the texts referred to it with the required care; 
whereas, in duly justified cases of extreme urgency, for example on account of market sensitivity, 
Member States may set a time limit of less than one month; whereas, in these cases particularly, 
dialogue between the national authorities and the EMI should enable the interests of both to be taken 
into account, 
The initial draft proposal (doc. (93) 436 final of 22.09.1993 was confirmed as a formal 
proposal with effect from 1.11.1 993. 
i1) OJ c 
u 
HAS ADOPTED THIS DECISION: 
Article 1 
1. The authorities of the Member States shall consult the EMI on any draft legislative provision 
within its field of competence pursuant to Article 109F of the Treaty and in particular on: 
- currency legislation, the status of the ecu and means of payment; 
- the status and powers of national central banks and the instruments of monetary policy; 
- the collection, compilation and dissemination of monetary, financial, banking and balance of 
payments statistics; 
- clearing and payment systems, in particular for cross-border transactions; 
- rules applicable to financial institutions insofar as they influence the stability of financial 
institutions and markets. 
2. The EMI shall, immediately on receipt of any draft legislative provision, notify the consulting 
authority if, in its opinion, such provision is within its field of competence. 
Article 2 
1. "Draft legislative provisions" shall mean any such provisions which are legally binding and of 
general applicability in the territory of a Member State, which lay down rules for an indefinite 
number of cases and which are addressed to an indefinite number of natural or legal persons. 
2. Draft legislative provisions within the meaning of paragraph 1 shall not include draft provisions 
the exclusive purpose of which is the transposition of Community Directives into the law of 
Member States. 
Article 3 
Each Member State shall take the measures necessary to ensure effective compliance with this 
Decision. To that end, it shall ensure that the EMI is consulted at an appropriate stage enabling the 
authority initiating the draft legislative provision to have the EMI's opinion before taking its decision 
on the substance and that the opinion received from the EMI is brought to the knowledge of the 
adopting authority if the latter is an authority other than that which has prepared the legislative 
provisions concerned. 
«? 
Article 4 
The authorities of the Member States preparing a legislative provision may, if they consider it 
necessary, set the EMI a time limit for the submission of its opinion which may not be less than one 
month from the date on which the President of the EMI receives notification to this effect, save in 
case of extreme urgency. Upon expiry of the time limit, the absence of an opinion shall not prevent 
further action. Should the opinion of the EMI be received after the time limit, the Member States 
shall, nevertheless, ensure that it is brought to the knowledge of the authorities referred to in 
Article 3. 
Article 5 
This Decision is addressed to the Member States. 
Done at Brussels, 
For the Council 
The President 
ÎS 
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