COMMON POSITION (EC) No 11/1999 adopted by the Council on 21 December 1998 with a view to adopting Council Regulation (EC) No . . ./1999 of . . . amending Regulation (EC) No 975/98 on denominations and technical specifications of euro coins intended for circulation (1999/C 55/04)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 105a(2) thereof,

Having regard to the proposal from the Commission (1),

Having regard to the opinion of the European Central Bank (2),

Acting in accordance with the procedure laid down in Article 189c of the Treaty (3),

Whereas Article 1 of Regulation (EC) No 975/98 (4) sets out the technical specifications of the eight denominations included in the first series of euro coins; whereas the mint directors have drawn up, on the basis of that Regulation, the more detailed specifications necessary for production;

Whereas the vending industry, having examined those detailed specifications, has requested an increase of the weight of the 50 cent coin in order to ensure clearer differentiation of that coin and reduce risks of fraud; whereas the European Blind Union, having tested samples from the first production runs, has complained about the edge milling of the 50 cent and 10 cent coins which did not match the milling of the samples agreed by it during the consultation process preceding the adoption of Regulation (EC) No 975/98; whereas, in order to ensure the acceptance of the new system by the users, it seems desirable to accede to the requests expressed both by the vending industry and the European Blind Union; whereas in order to satisfy the vending industry's requirements, it is necessary to increase the weight of the 50 cent coin from 7 g to 7,8 g; whereas in order to satisfy the European Blind Union's requirements and avoid any risk of misinterpretation in the future, it is desirable to modify the specification for the edge of the 50 cent and 10 cent coins from 'coarse milling` to 'shaped edge with fine scallops` which better reflects the shape of the edge originally agreed by the European Blind Union for those two coins;

Whereas it is essential that the modifications of the technical specifications be confined to the weight of the 50 cent coin and the edge of the 10 cent and 50 cent coins in order not to compromise the production timetable and the introduction of the euro coins on 1 January 2002,

HAS ADOPTED THIS REGULATION:

Article 1

In Article 1 of Regulation (EC) No 975/98, the table shall be amended as follows:

1. The fourth row relating to the 50 cent coin shall be amended as follows:

(a) in the third column, the figure '1,69` shall be replaced by '1,88`;

(b) in the fourth column, the figure '7` shall be replaced by '7,8`;

(c) in the eighth column, the words 'coarse milled` shall be replaced by 'shaped edge with fine scallops`.

2. In the sixth row relating to the 10 cent coin, in the eighth column, the words 'coarse milled` shall be replaced by 'shaped edge with fine scallops`.

Article 2

This Regulation shall enter into force on 1 January 1999.

This Regulation shall be binding in its entirety and directly applicable in all Member States, in accordance with the Treaty, subject to Article 109k(1) and Protocols 11 and 12.

Done at . . .

For the Council

The President

(1) OJ C 296, 24.9.1998, p. 10.

(2) Opinion delivered on 16 November 1998 (not yet published in the Official Journal).

(3) Opinion of the European Parliament of 17 November 1998 (OJ C 379, 7.12.1998), Council common position of 21 December 1998 and Decision of the European Parliament of . . . (not yet published in the Official Journal).

(4) OJ L 139, 11.5.1998, p. 6.

STATEMENT OF THE COUNCIL'S REASONS

I. INTRODUCTION

1. On 1 September 1998, the Commission forwarded to the Council the above proposal for a Regulation, based on Article 105a(2) of the EC Treaty, in order to amend Council Regulation (EC) No 975/98 in respect to certain technical characteristics of the 50 and 10 cent euro coins. The procedure of Article 189c of the Treaty is applicable for the adoption of this Regulation.

2. The European Parliament delivered, in first reading, an opinion on 18 November 1998.

The Commission does not intend to present at this stage an altered proposal pursuant to Article 189a(2) of the Treaty.

3. On 21 December 1998 the Council adopted its common position pursuant to Article 189c(a) of the Treaty.

II. OBJECTIVE

The above proposal seeks to modify certain technical characteristics of the 50 and 10 cent euro coins laid down in Regulation (EC) No 975/98 in order to meet specific concerns expressed by the European Blind Union and by the vending machine industry. Thus, it proposes exclusively an increase of the weight of the 50 cent coin and a change of the definition of the edge of both the 50 and 10 cent coins. The Commission does not propose to modify any other features (denominations and technical specifications) of Regulation (EC) No 975/98.

The objective of making the technical characteristics of these coins more user-friendly was welcomed by Ministers of the (Ecofin) Council of 6 July 1998.

III. ANALYSIS OF THE COMMON POSITION

The common position of the Council is identical to the Commission proposal.

The only amendment voted by the European Parliament on 18 November 1998 suggests the introduction of a gold coin intended for circulation with a face value of 100 euro.

The common position of the Council does not include this amendment.

In this respect the Council recalls its statement of reasons on its common position (EC) No 1/98 adopted by the Council on 20 November 1997 with a view to adopting Regulation (EC) No 975/98 on denominations and technical specifications of euro coins intended for circulation (OJ C 23, 23.1.1998, p. 4) in which the Council justifies the rejection of the same amendment at the time. Indeed, the suggestion to issue a gold coin with a face value of 100 euro cannot be accepted by the Council on grounds relating to the very likely discrepancy between market value and nominal value, to the risk of speculative hoarding and the already planned issue of a 100 euro banknote.

IV. CONCLUSION

The Council considers that:

- its common position responds to the political willingness of the Ecofin Council on 6 July 1998 to make the 50 and 10 cent euro coins more user-friendly and that it will meet the concerns expressed in this respect by the European Blind Union and the vending machine industry,

- it is essential to adopt swiftly these limited technical modifications in order to allow the production of all euro coins to start as soon as possible.