WRITTEN QUESTION No. 1422/98 by José GARCÍA-MARGALLO Y MARFIL to the Commission. EURO 1999
Date: 1998-04-29
Institutions: European Parliament, Provisional data
Subjects: Economic and Monetary Union, European Monetary System, bank charges, central bank, currency convertibility, euro, monetary integration, monetary policy, transitional period (EU)

22.12.98

EN

Official Journal of the European Communities

C 402/131

During the bathing season, the national and the European blue flag organisation make, unannounced, control
visits to the beaches awarded with a blue flag. If they detect breaches of the blue flag criteria, the flag will be
taken down, until the situation is remedied. Moreover, the whole blue flag campaign is based on large public
awareness, participation and education. It is therefore expected that beach visitors will react to the national and
European blue flag operators if they notice anomalies.

However, in the more than ten years existence of the campaign, very few real abuses have been reported.

(1) OJ L 31, 5.2.1976.

(98/C 402/173)

WRITTEN QUESTION P-1422/98

by JosØ Garc(cid:237)a-Margallo y Marfil (PPE) to the Commission

(29 April 1998)

Subject: EURO 1999

Council Regulation (EC) 1103/97 (1), and the draft Regulation on the introduction of the euro annexed to the
Council Resolution of 7 July 1997 (2), appear to favour limiting the scope for banks to charge commission on the
conversion of payments made into accounts or on the conversion of accounts at the end of the transitional period.

Does the Commission envisage adopting legal provisions of some kind in order apply these principles?

(1) OJ L 162, 19.6.1997, p. 1.
(2) OJ C 236, 2.8.1997, p. 7.

Answer given by Mr de Silguy on behalf of the Commission

(3 June 1998)

The two Council regulations establishing the legal framework for the use of the euro do not explicitly address the
issue of banking charges for conversion to the euro. The Commission stated in its last communication on practical
aspects of the introduction of the euro (1) that in its opinion, charging for conversions which are legally required
on the basis of the euro regulations would be unlawful. This includes conversion of incoming payments from the
national currency unit to the euro unit and vice versa during the transitional period and conversion of accounts
from the national currency unit to the euro unit at the end of the transitional period. This legal interpretation
confirms the view expressed by the Honourable Member.

Having studied the issue of banking charges for conversion to the euro with the help of an expert group, the
Commission at this stage has not deemed it necessary to impose the principle by way of legislation. It appears
from the investigation carried out by the expert group that a large majority of banks do not intend to charge for
compulsory conversions even in the absence of legislative measures. On 23 April 1998 the Commission adopted a
recommendation (2) which set out a standard of good practice on banking charges for conversion to the euro. The
standard covers both those practices that the Commission considers to be legally required on the basis of the euro
regulations and other recommended practices that the Commission considers that banks should apply in order to
facilitate the smooth introduction of the euro. Regarding payments and conversion of accounts the Commission
recommends the conversion without charges of incoming and outgoing payments during the transitional period,
and of accounts into euro unit during the transitional period and at the end of it.

(1) COM(98) 61 final.
(2) COM(98) 961 final.