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
Date: 1989-10-13
Institutions: European Commission
Subjects: European Monetary System, central bank, coordination of EMU policies, monetary policy

COMMISSION  OF  THE  EUROPEAN  COMMUNITIES 

C0M(89)  467  f i n al 

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 

Decision 64/300/EEC  is hereby amended  as follows: 

i 

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: 

The  tasks of the Comnittee shall  be: 

"Article 3 

(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 

on co-operation between the Central  Banks of  the Member  States 

of 8 May  1964 

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. 

- t o-

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 
L-2985 Luxembourg