COMMISSION OF THE EUROPEAN COMMUNITIES 
C0M(89) 467 final 
Brussels, 13 October 1989 
Recommendation for a 
COUNCIL DECISION 
amending Decision 64/300/EEC on co-operation between the Central Banks 
of the Member States of the European Economic Community 
(presented by the Commission) 
Recommendation for a 
COUNCIL DECISION 
amending Decision 64/300/EEC 
on oo-operatlon between the Central Banks of the Member States 
of the European Economic Ccnrnunlty 
THE OOUNCIL OF THE EUROPEAN OCMMUNITIES, 
Having regard to the Treaty establishing the European Economic 
Cannunlty, and In particular to Article 105(1) and to the first Indent 
of Article 145 thereof, 
Having regard to the Reccmnendatlon from the Commission dated 
1989, 
Having regard to the Opinion of the European Pari lament, 
Having regard to the Opinion of the Economic and Social Ccrrmlttee, 
Whereas the European Counc il, at I ts meet I ng in Madr i d on 26 and 
27 June 1989, decided that the first stage of the Implementation of 
Economic and Monetary Union is to begin on 1 July 1990; 
Whereas Article 102a of the Treaty as well as the Implementation 
of the first stage of the Economic and Monetary Union calls for an 
Increased degree of convergence In economic performance towards non-
Inflationary growth and of economic and social cohesion between the 
Member States; 
Whereas greater convergence should be promoted with a view to 
achieving domestic price stability, which Is at the same time a 
necessary condition for stable exchange rates, In accordance with the 
requirements of the European Monetary System; 
- 2 -
Whereas the Implementation of the first stage of Economic and 
Monetary Union will focus on completing the Internal market and in 
particular removing all obstacles to financial integration, on 
strengthening the process of co-ordination of monetary policies, on 
Intensifying co-operation between Central Banks on other matters 
falling within their competence and, In this connection, should give 
consideration to extending the scope of the Central Banks' autonomy; 
Whereas arrangements for the formulation of monetary policy in an 
Economic and Monetary Union should provide for adequate autonomy for 
the Institutions and for canrmitment to price stability, which is 
essential to the success of that Union; 
Whereas, In view of the objective of Economic and Monetary Union, 
the tasks and role of the Ccmnlttee of Governors of the Central Banks 
of the Members States of the European Catmunity should be extended and 
reinforced, 
HAS DECIDED AS FOLLOWS: 
Sole Article 
i 
Decision 64/300/EEC is hereby amended as follows: 
1. Article 2 is replaced by the following: 
"Article 2 
The Ccnmittee shai » be composed of the Governors of the 
Central Banks of the Member States and the Director General of 
the Luxembourg Monetary Institute. If they are unable to 
attend, they may nominate another representative of their 
institution. 
The Comilssion shall, as a general rule, be Invited to send one 
of Its members as a representative to the meetings of the 
Connittee. 
OJ No 77, 21.5.1964, p. 1206/64. 
- 3 -
The Comiittee may, furthermore, If It considers it necessary, 
invite qualified persons to attend and in particular the 
Chairman of the Monetary Committee. " 
2. The following Article 2a is inserted: 
"Article 2a 
The Chairman of the Ccnmlttee shall be Invited to participate 
In the meetings of the Counci I of Ministers." 
3. Article 3 is replaced by the following: 
"Article 3 
The tasks of the Comnittee shall be: 
(1) to hold consultations concerning the general principles and 
the broad lines of policy of the Central Banks, in 
particular as regards credit, money and foreign exchange 
markets and Including, within their competences, issues 
affecting the stability of financial institutions and 
markets ; 
(2) to exchange information regularly about the most important 
measures that fall within the competence of the Central 
Banks, and to examine those measures. The Comnittee shall 
normally be consulted In advance of national decisions on 
the course of monetary policy, such as the setting of 
annual domestic monetary and credit targets; 
(3) to promote the co-ordination of the monetary policies of 
the Member States with a view to the proper functioning of 
the European Monetary System and the realisation of its 
objective of monetary stab11ity; 
(4) to formulate opinions on the overall orientation of 
monetary and exchange rate policy as we I I as on the 
respective measures Introduced in Individual Member States 
with the aim of ensuring convergent monetary policies in 
the Community directed towards price stab 11ity; 
- 4 -
(5) to express opinions to individual governments and the 
Council of Ministers on policies which might affect the 
Internal and external monetary situation in the Ccmnunlty 
and, In particular, the functioning of the European 
Monetary System. 
In carrying out its tasks, the Comnlttee shal I keep under 
review the trend of the monetary situation both Inside and 
outside the Ccmnunlty. 
The Cemnittee shall prepare an annual report on its activities 
and on the monetary and financial conditions In the Ccmnunity, 
which will be transmitted to the Council of Ministers, the 
European Par Ii ament, and the European Counc11. 
The Ccrrm I ttee may author I se I ts Cha I rman to make the outcome of 
its deliberations public." 
4. The followinq Article 3a is inserted: 
"Article 3a 
The members of the Cemnittee, who are the representatives of 
their institutions, shall act, with respect to their activities 
on the Cemnittee, according to their own responsibilities and 
having due regard to Ccmnunlty objectives". 
- 5 -
5. Article 5 is replaced by the following: 
"Article 5 
The Cormittee shall adopt its own rules of procedure. It may 
create sub-ccmnittees and provide Its own Secretariat and 
research services." 
Done at 
For the CounciI 
The President 
Annex 
(For information only) 
DRAFT CONSOLIDATED COUNCIL DECISION 
of 8 May 1964 
on co-operation between the Central Banks of the Member States 
of the European Economic Ccmnunlty 
* (64/300/EEC) 
(as amended by Counci I Decision of .... ) 
THE COUNCIL OF THE EUROPEAN OCMVLNITI ES, 
Having regard to the Treaty establishing the European Economic 
Ccmnunity, and in particular to Article 105(1) and to the first indent 
of Article 145 thereof, 
Having regard to the Reccmnendatlon of the Cemnlssion dated 
1989, 
Having regard to the Opinion of the European Pari lament, 
Having regard to the Opinion of the Economic and Social Cormittee, 
Whereas the European CouncII, at Its meetIng in Madrid on 26th and 
27th June 1989, decided that the first stage of the implementation of 
Economic and Monetary Union snail begin on 1st July 1990; 
Whereas Article 102(A) of the Treaty as well as the implementation 
of the first stage of the Economic and Monetary Union calls for an 
increased degree of convergence In economic performance towards non-
Inflationary growth and of economic and social cohesion between the 
Member States; 
Whereas greater convergence should be promoted with a view to 
achieving domestic price stability, which is at the same time a 
necessary condition for stable exchange rates, in accordance with the 
requirements of the European Monetary System; 
-f-
Whereas the implementation of the first stage of Economic and 
Monetary Union will focus on completing the internal market and in 
particular removing all obstacles to financial integration, on 
strengthening the process of co-ordination of monetary policies, on 
intensifying co-operation between Central Banks on other matters 
falling within their competence and, in this connection, should give 
consideration to extending the scope of the Central Banks' autonomy, 
Whereas arrangements for the formulation of monetary policy In an 
Economic and Monetary Union should provide for adequate autonomy for 
the institutions and for ccmnltment to price stability, which is 
essential to the success of that Union; 
Whereas, in view of the objective of Economic and Monetary Union, 
the tasks and role of the Cormittee of Governors of the Central Banks 
of the Members States of the European Cantiunity should be extended and 
reinforced; 
HAS DECIDED AS FOLLOWS: 
Article 1 
For the purpose of promoting co-operation between the Central Banks 
of the Member States, a Cormittee of the Governors of the Central Banks 
of the Member States of the European Ccmnunlty (hereinafter called the 
"CcrnnitteeM) is hereby set up. 
Article 2 
The Committee shall be composed of the Governors of the Central 
Banks of the Member States and the Director General of the Luxembourg 
Monetary Institute. If they are unable to attend, they may nominate 
another representative of their Institution. 
- a 
.y 
The Cormission shall, as a general rule, be Invited to send one of 
its members as a representative to the meetings of the Carmittee. 
The Committee may, furthermore, If It considers It necessary, invite 
qualified persons to attend and in particular the Chairman of the 
Monetary Carmittee. 
Article 2a 
The Chairman of the Carmittee shall be invited to participate in 
the meet Ings of the CouncII of M i nIsters. 
Article 3 
The tasks of the Committee shal I be: 
(1) to hold consultations concerning the general principles and the 
broad lines of policy of the Central Banks, in particular as 
regards credit, money and foreign exchange markets and 
Including, within their competences, issues affecting the 
stability of financial institutions and markets; 
(2) to exchange Information regularly about the most important 
measures that fa 11 within the competence of the Central Banks, 
and to examine those measures. The Carmittee shal I normal I y be 
consulted In advance of national decisions on the course of 
monetary policy, such as the setting of annual domestic 
monetary and credit targets; 
(3) to promote the co-ordination of the monetary policies of the 
Member States with a view to the proper functioning of the 
European Monetary System and the realisation of its objective 
of monetary stab 111ty; 
(4) to formulate opinions on the overall orientation of monetary 
and exchange rate po I icy as we 11 as on the respective measures 
introduced in individual Member States with the aim of ensuring 
convergent monetary policies in the Corrmunity directed towards 
price stab 11f ty; 
-°t -
(5) to express opinions to Individual governments and the Counci I 
of Ministers on policies which might affect the internal and 
external monetary situation In the Carmunity and, In 
particular, the functioning of the European Monetary System. 
In carrying out Its tasks, the Comnittee shall keep under review 
the trend of the monetary situation both Inside and outside the 
CcrnnunIty. 
The Comnittee shall prepare an annual report on its activities and 
on the monetary and financial conditions in the Carmunity, which 
will be transmitted to the Council of Ministers, the European 
Par I Iament and the European Counc11. 
The Comnittee may authorise Its Chairman to make the outcome of its 
del(Derations publIc. 
Article 3a 
The members of the Comnittee, who are the representatives of their 
institutions, shall act, with respect to their activities on the 
Carmlttee, according to their own responsibilities and having due 
regard to Carmunity objectives. 
Article 4 
The Carmlttee shall meet at regular intervals and whenever 
circumstances so require. The Comnission may, if it considers the 
situation necessitates such a step, request an emergency meeting of 
the Comnittee. 
-to-
Artlcle 5 
The Ccmnlttee shall adopt its own rules of procedure. It may 
create sub-ccmnittees and provide Its own Secretariat and research 
services. 
Done at Brussels, 8 May 1964 
For the Counc11 
The President 
H. FAYAT 

ISSN 0254-1475 
COM(89) 467 final 
DOCUMENTS 
EN 18 
Catalogue number : CB-CO-89-423-EN-C 
ISBN 92-77-53165-7 
Office for Official Publications of the European Communities 
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