WRITTEN QUESTION No. 1443/98 by José GARCÍA-MARGALLO Y MARFIL to the Commission. Euro 1999
Date: 1998-05-11
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 402/135

(98/C 402/178)

WRITTEN QUESTION E-1442/98

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

(11 May 1998)

Subject: Euro 1999

The Commission communication on the practical aspects of the introduction of the euro (COM(98) 61 final, p. 13)
refers to the two Regulations on the euro, based upon Article 235 and Article 109, which neither explicitly
authorize nor explicitly prohibit conversion charges, and states: (cid:145)However, other legal principles in the
Regulations and in national legislation would restrict banks(cid:146) ability to charge: for example, charges would not
be permitted for the conversion of incoming payments, and for the conversion of accounts at the end of the
transitional period. Similarly, charging a higher fee for a service denominated in euro than for the same service
denominated in the national currency unit, would undermine the legal equivalence between the euro and the
national currency unit. The Commission considers that such practices would be unlawful.(cid:146)

In the Commission(cid:146)s view, what measures could national central banks and/or governments adopt to guard
against such practices?

(98/C 402/179)

WRITTEN QUESTION E-1443/98

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

(11 May 1998)

Subject: Euro 1999

The Commission communication on the practical aspects of the introduction of the euro (COM(98) 61 final)
states that some legal principles in the Regulations establishing the legal provisions governing the euro would
appear to restrict banks(cid:146) ability to charge for the conversion of incoming payments or for the conversion of
accounts during the transitional period.

What does the Commission intend to do to ensure respect for these general principles?

Joint answer to Written Questions
E-1438/98, E-1442/98 and E-1443/98
given by Mr de Silguy on behalf of the Commission

(11 June 1998)

In its reply to the Honourable Member(cid:146)s written question P-1422/98 (1), the Commission has already confirmed
its position on the implications of existing legal provisions on banking charges for conversion to the euro, which
confirm the views of the Honourable Member.

The Commission adopted on 23 April 1998 a recommendation (2) addressed to the banking sector and the
Member States which sets out a standard of good practices on banking charges for conversion.

Among the possible ways to ensure a transparent implementation of the standards of good practice the
Commission has indicated in its recommendations the possibility for the banks to agree on codes of conduct,
or the use of a label within a national scheme, or the inclusion of provisions on banking charges in the national
transition plans. The central banks and the public authorities could favour and encourage these practices with
their national banking association in order to ensure the respect of the general principles stated and recommended
by the Commission.

Public authorities could include the recommended practices in the national transition plans or reach agreements
with the banking and financial sector within the national structures for dialogue.

The Commission intends to monitor the application of the recommended standards and for that purpose in a
separate Commission recommendation on (cid:145)Dialogue, Monitoring and Information provision to facilitate the
transition to the euro(cid:146)2 it expressly requested the banking associations to report to the Commission, by
1 November 1998, on the implementation of such standards by the banking sector.

(1)
See page 131.
(2) COM(98) 961 final.