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COM (84) 377 
 
 
 
Vol. 1984/0 161 
  
 
Disclaimer  
Conformém ent au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983 
concernant l'ouverture au public des archives historiques de la Communauté économique 
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983, 
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003 
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents 
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit 
règlem ent. 
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 
concerning the openi ng to the public of the historical archives of the European Econom ic 
Community and the European Atomic Energy Communit y (OJ L 43, 15.2.1983, p. 1), as 
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243, 
27.9.2003, p. 1), this f ile is open to the public. Where necessary, classified documents in this 
file have been declassified in conformity with Article 5 of the aforementioned regulation.  
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom  1. 
Februar 198 3 über die Freigabe der historischen Archive der Europäischen  
Wirtschaftsgemeinschaft und der Europäischen Atomgem einschaft (ABI. L 43 vom  15.2.1983,  
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. Septem ber 2003  
(ABI. L 243 vom 27 .9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit  
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5  
der genannten Verordnung freigegeben.  
COMMISSION  
OF THE
EUROPEAN COMMUNITIES
G eneral SecretariatC O M (84) 377 final 
Brussels, 5  July 1984
FO R  OFFICIAL U S E  ONLY
N E G O T IA T IO N S  F O R  T H E  A C C E S S IO N  O F  P O R T U G A L
Proposa l
concerning the inclusion of the escudo in the E C U
(Commission Communication to the Council)
C O M (84) 377 final

E X P L A N A T O R Y  M E M O R A N D U M
In the context of the examination of secondary Legislation in the 
economic and financial affairs chapter, the inclusion of the escudo 
in the E C U  is a  problem on which the Community has yet to specify 
its  position.
Negotiations have already been held on this matter with the 
Portuguese authorities but no agreement has yet been reached. In the 
course of the negotiations the Monetary Committee has twice given its 
opinion.
The Community position set out in this draft m e m o  is in accordance 
with the Monetary Committee's opinion.
It is proposed that the Commission approve the.attached Communication 
and decide to present it  to the Council.

1. In its  statement presented on 19 D ecem ber 1980 at the 11th meeting 
of the Conference at Deputy level, the Community delegation said it 
considered that the escudo would in due course have to be included in
the E C U  because of the ECU's various functions in the Community mechanisms.
T he Community, nevertheless, reserved the right to specify its position 
on the practical arrangements for such inclusion at a  later stage in the 
negotiations.
2. In the light of the subsequent discussions with the Portuguese 
authorities, the Commission proposed to the Council on 28 January 19822  
that the escudo be included as soon as the.weightings of the currencies 
making up the E C U  were adjusted in accordance with the procedures and 
conditions laid dow n in the European Council's resolution of
5  December 1978 on the European Monetary System, and that, in any event, 
the escudo be included no later than five years after the date of 
Portugal's accession.
At the .meeting of the Council ad hoc Working Party on the accession of 
Portugal on 8  February 1982, it  w as requested that the Monetary Committee 
be consulted on the matter.
The Monetary Committee, which is anxious to maintain the conditions 
required for the proper functioning of the E M S , based on as stable a n 
E C U  as possible, rejected the idea of setting a  date in advance for 
including the escudo in the E C U . O n  10 February it  delivered the 
following opinion:
"The Community, like the Portuguese/Spanish delegation, considers that 
the decision on the conditions for the inclusion of the escudo/peseta 
in the E C U  could in any case be taken after accession."
1
2C O N F -P  45/80. 
C0MC82)16 fin a l.

This text has been incorporated as it  stands by the Council in 
its  statements to the two applicant countries. In the statements 
which they m a d e  in reply, the Portuguese authorities said they 
could not accept these proposals and proposed a  formula identical 
to that adopted for the drachma (i.e. inclusion, after accession, 
once the weightings of the currencies making up the E C U  have 
been reviewed, or, in any event, no later than five years after 
the date of accession).
3. The Council then said it  would like the Monetary Committee 
to undertake a  detailed examination of this problem, and, as 
noted i.n  the record of its meeting on 2 5 February, the Permanent 
Representatives Committee stated:
"The question of the inclusion of the applicant countries' currencies 
in the E C U  should be examined in greater depth by the Monetary Committee 
in a  more general context and in the light of Portugal's (and Spain's) 
reactions to the position adopted by the Community on the basis 
of the Monetary Committee's firs t opinion."*
W h e n  consulted, the Monetary Committee confirmed and developed 
its  previous position. It delivered the following opinion on 
15 Decem ber 1982:
"In conclusion, and subject to the last sentence of this paragraph, 
the Committee notes that in present circumstances each M em ber State 
has the right in principle that' its  currency be included in the 
E C U  in the framework of a  Community procedure. However, the Committee 
considers that the exercise of this right does not correspond 
to the requirements of the E M S . The countries concerned w ill 
in any event have to consult the Monetary Committee before any 
decision is taken to include their currencies in the E C U . In 
any case, unless one of these currencies were entering the exchange 
rate mechanism of the E M S , such inclusion could only occur at the 
time .of. one of the regular reviews of the weights of currencies in 
the E C U . The composition of the E C U  m a y  well have to be reviewed in 
due course in the light of the steps currently being taken to 
develop its  role."
C O N F-P/ 1V82 of 17 February 1982. 
CONF-P/22/82 of 24 March 1982. 
Unofficial translation.

The Monetary Committee therefore refused to recom m end that the 
procedure previously adopted in the case of the drachma be followed, 
largely for the following reasons:
(i) w hen Greek accession w as being negotiated, the E M S  did
not yet exist and the E C U , then called the E U A , functioned 
only as a  unit of account in the Community institutions' 
administrative operations;
( ii)  movements in the currencies not participating in the E M S  
exchange-rate mechanism have had significant disruptive 
effects on E C U  central rates;
( i i i )  the development of the private E C U  market, which goes 
back only to 1981, presupposes that the reviews of the 
basket are undertaken systematically, in accordance with 
the procedures and timetable laid dow n in 1978, and also 
that the component currencies are reasonably stable;
(iv) lastly, the development of the monetary integration process
m a y  be such that the M em ber States w ill ultimately reconsider 
the very definition of the E C U  as a  basket of M em ber States' 
currencies.
Commission's proposal
In the light of the above, and largely on the basis of the Monetary 
Committee's second opinion, the.Commission proposes the following:
"In the light of the present definition of the E C U  and subject 
to a  review of the E C U  which might prove necessary depending 
on ho w  its  role develops, the Community and the Portuguese delegation 
note that each M em ber State has the right in principle for its 
currency to be included in the E C U  in the framework of a  Community 
procedure. However, the Committee considers that the exercise 
of this right does not necessarily correspond to the requirements 
of'the-EMS. In any case, the decision to include the escudo could 
be taken, following consultation of the Monetary Committee, only 
at the time of one of the regular reviews of the weights of 
currencies in the ECU."