A4-0070/98

Resolution on the report of the European Monetary Institute on legal convergence in the Member States of the European Union (as at August 1997) (C4-0560/97)

The European Parliament,

- having regard to the report of the European Monetary Institute (C4-0560/97),

- having regard to its resolutions of 28 November 1996 embodying its opinion, pursuant to Article 109j, paragraph 2 of the EC Treaty, on the 1996 convergence decision by the Council, meeting in the composition of the Heads of State or of Government ((OJ C 380, 16.12.1996, p. 56.)) and on the impact of monetary policies on the real economy, inflation, interest rates, growth and employment in the third stage of EMU, and the economic function of convergence criteria ((OJ C 380, 16.12.1996, p. 62.)),

- having regard to its resolutions of 18 June 1996 ((OJ C 198, 8.7.1996, p. 47.)) and of 10 June 1997 ((OJ C 200, 30.6.1997, p. 32.)) on the 1995 and 1996 annual reports of the European Monetary Institute,

- having regard to its resolution of 10 June 1997 ((OJ C 200, 30.6.1997, p. 35.)) on the European Monetary Institute's report on the Single Monetary Policy in Stage Three - Specification of the operational framework,

- having regard to the provisions of the Treaty establishing the European Community, in particular Articles 105, 107, 108 and 109j, and to Protocol No 3 on the Statute of the ESCB and of the ECB,

- having regard to the 1995 and 1996 convergence reports of the European Monetary Institute,

- having regard to the report of the Committee on Economic and Monetary Affairs and Industrial Policy (A4-0070/98),

A. whereas the basic tasks of the ECB and the ESCB are to define and implement the monetary policy of the Community, to conduct foreign exchange operations, to hold and manage official foreign reserves, to promote the smooth operation of payment systems and to contribute to the smooth conduct of the prudential supervision of credit institutions and the stability of the financial system,

B. mindful of the tasks and obligations of the ECB in relation to the non-participating Member States and their relations with global financial markets and their institutions,

C. whereas the EC Treaty and the ESCB/ECB Statute do not require harmonization of national legislation but only the removal of incompatibilities between national and European legislation; whereas national peculiarities may therefore continue to exist,

D. whereas, in order to satisfy the requirements laid down in Article 108 of the EC Treaty, the necessary legislative procedures for ensuring the compatibility of national legislation with the Treaty need to be completed at the latest at the date of the establishment of the ESCB,

E. referring to its previously expressed misgivings about the 'institutional imbalance of the ECB', contained in its abovementioned resolution of 28 November 1996 on the convergence decision,

1. Notes that the ECB and the ESCB have the undisputed joint task of deciding on a uniform European monetary policy, implementing it and reviewing it in the light of economic and social circumstances;

2. Calls for clarity on the integration of the national central banks into the ESCB and for the precise identification of the tasks which will still be performed by the national central banks;

3. Calls for an interpretation of the institutional independence of national central banks as integral parts of the ESCB that does not rule out processes of mutual consultation and dialogue with other institutions;

4. Notes that a dialogue between the national central banks and their political institutions is compatible with the EC Treaty and the ESCB Statute, provided that it does not encroach on the independence of the members of the decision-making bodies of the national central banks and provided that the powers of the ECB, its duty of democratic accountability at Community level and the special status of the President in his capacity as member of its decision-making bodies are respected;

5. Reiterates its position formulated in its abovementioned resolution of 10 June 1997 on the EMI's report on the Single Monetary Policy in Stage Three that Article 105(1) and Article 2 of the EC Treaty on the promotion of growth, prosperity, employment and stability must constitute the framework for future monetary policy;

6. Calls for a clear distinction to be made in the EMI report on legal convergence in the Member States of the European Union between compatible and incompatible provisions concerning the tasks of national central banks and, in particular, for a clear definition of the phrase 'impediment to the execution of ESCB-related tasks';

7. Notes that the EMI has submitted for discussion important preliminary work on the basis of which the future ECB will be able to decide what it views as compatible or incompatible with the EC Treaty under the heading of 'rules on accounting, auditing, capital subscriptions, transfer of foreign reserve assets and monetary income';

8. Awaits also from the EMI an explanation of the criteria which it intends to employ to assess the compatibility or incompatibility of other 'areas of legislation which are affected by the transition from Stage Two to Stage Three';

9. Instructs its President to forward this resolution to the Commission, the Council, the EMI Council, the parliaments of the Member States and the national central banks.