Proposal for a Council Regulation (EC) on the consolidation of the existing Community legislation on the definition of the ecu following the entry into force of the Treaty on European Union
Date: 1994-04-19
Institutions: European Commission
Subjects: EU law, Treaty on European Union, agri-monetary policy, monetary compensatory amount, primary sector, representative rate

COMMISSION  OF  THE  EUROPEAN  COMVTUNITIES 

C0M(94) 140 final 
Brussels»  19.04.1994 

94/0115 (CNS) 

Proposal for a Council Regulation (EC) 

on the consolidation of the existing Community legislation 
on the definition of the ecu following the 
entry into force of the Treaty on European Union 

(presented by the Commission) 

EXPLANATORY  MEMORANDUM 

A consolidation  regulation designed to clarify  and  simplify Community 

legislation relating to the ecu and to ensure its consistency 

Following  the  entry  into  force  of  the  Treaty  on  European Union,  at 

least  five Community  instruments  -  of  differing  origins  and  legal 

status - give a definition of the composition of the ecu: 

1.  The  old  instruments  on  which  the  European Monetary System  was 

based, and in particular point 2.3 of the Resolution of the Brussel's 

European Council  of  5 December 1978,  describe  in  general  terms  the 

procedures for revising the currency composition of the ecu basket. 

2.  Regulation (EEC) No 3180/78 (and in particular Article 2, which has 

not  yet  been  repealed)  empowers  the  Council, acting  unanimously, to 

determine the revision procedures. 

3.  Regulation (EEC) No 1971/89 lays down the criteria for the revision 

scheduled for the end of 1989. 

4.  The Commission communication on the currency composition of the ecu 

following the 1989 revision of the basket (published in OJ No C 241/89) 

explains the current currency composition of the ecu. 

5.  The  new  Article 109g  of  the  Treaty 

establishing  the 

European Community  provides  for  the  currency  composition  of  the  ecu 

basket to remain unchanged during the second stage. 

- 2 -

This means that: 

- 

the  current  position  regarding  the  ecu  results  from  a  collection 

of  five  instruments  which  vary  in  nature  and  scope  and  may  prove 

difficult  to consult  should the need arise; 

some  of  the  provisions  of  those  instruments  have  been  rendered 

inoperative by Article 109g of the Treaty; 

and,  finally,  the  unity  of  the  concept  of  the  ecu  could  be 

undermined  by  the multiplicity  of  instruments  and  rules, which  may 

fuel  uncertainty  over  their  interpretation  during  a  period  of 

monetary  integration  -  a  period  in  which  maximum  clarity  and 

transparency  are needed. 

Accordingly,  with  a  view  to  publishing  legal  provision  which  can  be 

readily  understood  and  consulted  by  the  public,  the  Commission  is 

proposing  that  the  Council  adopt  a  clarifying  regulation  designed  to 

consolidate  the  existing  legislation  and  to  replace  it  with  a  single 

definition that  is compatible with the Treaty on European Union. 

I-

Proposal for a Council Regulation  (EC) 

on the consolidation of the existing Community  legislation 
on the definition of the ecu following the 
entry into force of the Treaty on European Union 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in 
particular Article 235 thereof. 
Having regard to the proposal from the Commission, 
Having regard tô the opinion of the European Parliament, 
Having regard to the opinion of the Monetary Committee, 
Having regard to the opinion of the European Monetary Institute, 

Whereas the definition of the currency composition of the ecu  is contained 
in a wide variety of Community  instruments and whereas consolidation by way 
of  a  regulation  of  the  rules  governing  the  said  definition  would  be 
expedient for the transparency of Community law; 

Whereas the following  instruments, which concern the unit of account of the 
European Communities, are in force: 

Commission  Decision  No 3289/75/ECSC  of  18 December 1975  on  the 
definition  and  conversion  of  the  unit  of  account  to  be  used  in 
decisions,  recommendations,  opinions  and  communications  for  the 
purposes  of  the  Treaty  establishing  the  European  Coal  and  Steel 
Community, as amended by Decision No 3334/80/ECSC; 

Council  Regulation  (EEC)  No 3180/78  of  18 December  1978  changing  the 
value of the unit of account used by the European Monetary  Cooperation 
Fund, as amended by Regulations  (EEC) Nos 2626/84 and 1971/89; 

Council  Regulation  (EEC)  No 3181/78  of  18 December  1978  relating  to 
the  European  Monetary  System,  as  amended  by  Regulation  (EEC) 
No 3066/85; 

- 1 +-

- 

European  Investment  Bank:  Decision- of  the  Board  of  Governors  of 
30 December 1977 amending the Statute of the European Investment Bank 
to  take  account  of  the  adoption  of  a  new  definition  of  the  Bank's 
unit of account; 

Council  Regulation  (EEC, Euratom)  No 3308/80  of  16 December  1980  on 
the  replacement  of  the  European  unit  of  account  by  the  ecu  in 
Community legal instruments; 

- 

European  Investment  Bank:  Decision  of  the  Board  of  Governors  of 
13 May 1981 amending the Statute of the European Investment Bank with 
respect to adoption of the ecu as the Bank's unit of account; 

Council Regulation  (EEC) No 3813/92  of  28 December 1992  on  the  unit 
of account and the conversion rates to be applied for the purposes of 
the common agricultural policy; 

Commission  Regulation  (EEC) No 1068/93  of  30 April 1993  on  detailed 
rules for determining and applying the agricultural conversion rates; 

Whereas  Article 109g  of  the  Treaty  establishing  the  European  Community 
provides  for the composition of  the  ecu basket  in terras of  the amounts  of 
the currencies of the Member States to be frozen during the second stage of 
economic  and  monetary  union  and  until  the  entry  into  force  of  the  third 
stage  of  economic  and  monetary  union,  which  will  entail  the  irrevocable 
fixing of the value of the ecu  in relation to the currencies  participating 
in  the  third  stage  and  the  transformation  of  the  ecu  at  a  unitary 
conversion rate  into  the  currency  in  its own right  issued  by the  European 
Central Bank; 

Whereas Article 1 of Regulation  (EEC) No 3180/78, as amended by Regulations 
(EEC) Nos 2626/84 and 1971/89, defines the ecu as the sum of amounts of the 
currencies of the Member States that may be re-examined  and,  if necessary, 
revised; 

Whereas  the  present  definition  of  the  composition  of  the  ecu  basket  in 
terms  of  the  currencies  of  the  Member States  was  published  in  the 
Official Journal of the European Communities  (No C 241/89),  in a Commission 
communication and not in a Council regulation; 

Whereas  the  currency  composition  of  the  ecu  basket  has  been  frozen  since 
the entry into force of the Treaty on European Union, 

HAS ADOPTED THIS REGULATION: 

-  s -

Article 1 
Definition of the ecu 

The  composition  of  the  ecu  basket  in  terms  of  the  currencies  of  the 
Member States shall be the following: 

0.6242 
1.332 

DM 
FF 
UKL  0.08784 
LIT  151.8 

HFL  0.2198 
BFR  3.301 
LFR  0.130 
PTA  6.885 

DKR  0.1976 
IRL  0.008552 
DRA  1.440 
ESC  1.393 

Article 2 
Adaptation of the rules of Community law applicable 

1.  Council Regulation  (EEC) No 3180/78,  as amended  by  Regulations  (EEC) 
Nos 2624/84 and 1971/89, ie hereby repealed. 

2.  In all the Community  instruments applicable at the time of. the entry 
into force of this  Regulation, the  definition  of  the  ecu  shall  be that 
contained in Article 1 of this Regulation. 

Article 3 

This Regulation shall enter into force on ... 
This Regulation shall be binding in its entirety and directly applicable in 
all Member States. 

-  6, 

ISSN 0254-1475 

COM(94) 140 final 

DOCUMENTS 

EN 

09  06 

Catalogue number : CB-CO-94-159-EN-C 

ISBN 92-77-67738-4 

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