Proposal for COUNCIL REGULATION amending Regulation (EC) No 1103/97 on certain provisions relating to the introduction of the euro

(presented by the Commission)

EXPLANATORY MEMORANDUM

On 3 May 2000, the Commission adopted a proposal for a Council Decision in accordance with Article 122 (2) of the Treaty, proposing that Greece fulfils the necessary conditions for the adoption of the single currency and that the derogation of Greece is abrogated with effect from 1 January 2001.

In case of a positive decision, the Council will subsequently have to adopt the conversion rate between the euro and the drachma which will take effect from 1 January 2001 and will have to take the other measures necessary for the introduction of the euro in Greece.

I. General considerations

The Regulations (EC) N° 1103/97 on certain provisions relating to the introduction of the euro [7] and N° 974/98 on the introduction of the euro [8] are complementary. Regulation N° 1103/97 includes those provisions where there was an urgent need for legal certainty before the date at which it was possible to take measures on the basis of Article 123 (4) of the Treaty (ex 109 l (4)). The latter article was available as a legal basis only after it was confirmed which Member States fulfilled the necessary conditions for the adoption of the single currency. Forming together the legal framework of the euro, the two regulations include a number of current definitions of notions relating to the currency. The purpose of the proposed amendment is to ensure that the definitions in the two regulations remain identical in order to avoid legal uncertainty.

[7] OJ L 162, 19.6.1997, pp. 1-3

[8] OJ L 139, 11.5.1998, pp. 1-5

II. Comments on the articles

Article 1

In this article, two definitions in Article 1 of Regulation (EC) N° 1103/97 are amended: the definition of 'conversion rate' is broadened to include conversion rates which are adopted after the start of the third stage of EMU on the basis of Article 123 (5) (ex 109 l (5)), and the definition of 'national currency units' is broadened to include units of former national currencies which are replaced by the euro after the start of the third stage.

Article 2

This article fixes the date of entry into force of the regulation at 1 January 2001, ensuring that the new definitions are applicable as from the date at which the amended Regulation (EC) N° 974/98, which includes the same definitions, enters into force.

2000/0134 (CNS)

Proposal for COUNCIL REGULATION amending Regulation (EC) No 1103/97 on certain provisions relating to the introduction of the euro

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 308 thereof,

Having regard to the proposal from the Commission, [9]

[9] ...

Having regard to the opinion of the European Parliament, [10]

[10] ...

Having regard to the opinion of the European Central Bank, [11]

[11] ...

Whereas:

(1) Regulation (EC) No 1103/97 of 17 June 1997 on certain provisions relating to the introduction of the euro [12] includes rules on the adoption of the conversion rates between the euro and the currencies of the Member States which adopt the euro and on the use of these rates for conversions of monetary amounts; whereas these rules apply to the conversion rates of the currencies of those Member States which adopted the euro when the Community entered the third stage of Economic and Monetary Union; whereas it is necessary to extend the rules to the conversion rates of the currencies of any Member States which adopt the euro at a later date;

[12] OJ L 162, 14.6.1997, pp. 1-3

(2) For Member States whose currency is replaced by the euro after the date at which the Community entered the third stage of Economic and Monetary Union, the definition of "national currency units" should refer to the unit of the Member State's currency as it was defined immediately before the introduction of the euro in that Member State,

HAS ADOPTED THIS REGULATION:

Article 1

In Article 1 of Regulation (EC) No 1103/97,

- the words "or in accordance with the fifth paragraph of this article" shall be added at the end of the third indent,

- the words "or, as the case may be, on the day before the euro is substituted for the currency of a Member State which adopts the euro at a later date" shall be added at the end of the fourth indent.

Article 2

This Regulation shall enter into force on 1 January 2001.

Done at Brussels,

For the Council

The President