98/415/EC: Council Decision of 29 June 1998 on the consultation of the European Central Bank by national authorities regarding draft legislative provisions
Date: 1998-06-29
Institutions: Council of the European Union
Subjects: EU Member State, Economic and Monetary Union, European Central Bank, drafting of EU law, financial legislation

L 189/42

EN

Official Journal of the European Communities

3. 7. 98

COUNCIL DECISION

of 29 June 1998

on the consultation of the European Central Bank by national authorities
regarding draft legislative provisions

(98/415/EC)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European
Community and in particular Article 105(4) thereof and
Article 4 of the Protocol on the Statute of the European
System of Central Banks and of the European Central
Bank annexed thereto,

Having regard to the proposal from the Commission (1),

Having regard to the opinion of the European Parlia-
ment (2),

Having regard to the opinion of the European Monetary
Institute (3),

Acting in accordance with the procedure provided for in
Article 106(6) of the Treaty and in Article 42 of the said
Protocol,

(1) Whereas the European Central Bank (ECB) will be
its Executive Board is

soon as

established as
appointed;

(2) Whereas the Treaty stipulates that national author-
ities shall consult
the ECB regarding any draft
legislative provision in its fields of competence;
whereas it is for the Council to set out the limits
and the conditions of such consultation;

(3) Whereas this obligation on the authorities of the
Member States to consult the ECB must not pre-
judice the responsibility of these authorities for the
matters which are the subject of such provision;
whereas Member States must consult the ECB on
any draft legislation in its fields of competence in
accordance with Article 105(4) of
the Treaty;
whereas the list of particular areas included in
Article 2 of this Decision is not exhaustive; whereas
the sixth indent of Article 2 of this Decision is
without prejudice to the present assignment of
competences for policies relating to the prudential
supervision of credit institutions and the stability of
the financial system;

(1) OJ C 118, 17. 4. 1998, p. 11.
(2) OJ C 195, 22. 6. 1998.
(3) Opinion delivered on 6 April 1998 (not yet published in the

Official Journal).

(4) Whereas the monetary functions and operations of
the European System of Central Banks (ESCB) are
defined in the Statute of the ESCB and of the ECB;
whereas central banks of participating Member
States are an integral part of the ESCB and must act
in accordance with the guidelines and instructions
of
in the third stage of
Economic and Monetary Union (EMU), the author-
ities of non-participating Member States must
consult the ECB on draft legislative provisions on
the instruments of monetary policy;

the ECB; whereas,

(5) Whereas as long as Member States do not parti-
cipate in the monetary policy of the ESCB, this
Decision does not concern decisions taken by
authorities of these Member States in the context of
the implementation of their monetary policy;

(6) Whereas consultation of the ECB must not unduly
lengthen procedures for adopting legislative provi-
sions in the Member States; whereas the time limits
within which the ECB must deliver its opinion
must, nevertheless, enable it to examine the texts
referred to it with the required care; whereas, in
duly justified cases of extreme urgency, for which
the reasons will be stated, for example on account
of market sensitivity, Member States may set a time
limit which is less than one month and which
reflects the urgency of the situation; whereas in
these cases particularly, dialogue between the
national authorities and the ECB should enable the
interests of both to be taken into account;

(7) Whereas, in accordance with paragraphs 5 and 8 of
Protocol No 11 annexed to the Treaty,
this
Decision shall not apply to the United Kingdom of
Great Britain and Northern Ireland if and so long
as that Member State does not move to the third
stage of EMU;

(8) Whereas, from the date of the establishment of the
ECB until the start of the third stage of EMU,
national authorities have to consult
the ECB,
to Decision 93/717/EC (4) and Article
pursuant
109l(2) of the Treaty,

(4) OJ L 332, 31. 12. 1993, p. 14.

3. 7. 98

EN

Official Journal of the European Communities

L 189/43

HAS ADOPTED THIS DECISION:

Article 1

For the purpose of this Decision:

1.
‘participating Member State' shall mean a Member State
which has adopted the single currency in accordance with
the Treaty;
‘draft legislative provisions' shall mean any such provi-
sions which, once they become legally binding and of
general applicability in the territory of a Member State,
lay down rules for an indefinite number of cases and are
addressed to an indefinite number of natural or legal
persons.

2. Draft legislative provisions shall not include draft
provisions the exclusive purpose of which is the trans-
position of Community directives into the law of Member
States.

Article 2

1.
The authorities of the Member States shall consult
the ECB on any draft legislative provision within its field
of competence pursuant to the Treaty and in particular
on:
(cid:190) currency matters,
(cid:190) means of payment,
(cid:190) national central banks,
collection,
(cid:190) the

compilation and distribution of
monetary, financial, banking, payment systems and
balance of payments statistics,
(cid:190) payment and settlement systems,
(cid:190) rules applicable to financial institutions insofar as they
materially influence the stability of financial institu-
tions and markets.

In addition, the authorities of Member States other
2.
than participating Member States shall consult the ECB
on any draft legislative provisions on the instruments of
monetary policy.

3.
The ECB shall, immediately on receipt of any draft
legislative provision, notify the consulting authority
whether, in its opinion, such provision is within its field
of competence.

Article 3

1.
The authorities of the Member States preparing a
legislative provision may, if they consider it necessary, set
the ECB a time limit for the submission of its opinion
which may not be less than one month from the date on

which the President of the ECB receives notification to
this effect.

2.
In case of extreme urgency, the time limit may be
reduced. In this case, the consulting authority shall state
the reasons for the urgency.

3.
The ECB may request in due time an extension of
the time limit for up to an additional four weeks. This
shall not be unreasonably declined by the
request
consulting authority.

4. Upon expiry of the time limit, the absence of an
opinion shall not prevent further action by the consulting
national authority. Should the opinion of the ECB be
received after the time limit, Member States shall, never-
theless, ensure that it is brought to the knowledge of the
authorities referred to in Article 4.

Article 4

Each Member State shall take the measures necessary to
ensure effective compliance with this Decision. To that
it shall ensure that the ECB is consulted at an
end,
appropriate stage enabling the authority initiating the
draft legislative provision to take into consideration the
ECB’s opinion before taking its decision on the substance
and that the opinion received from the ECB is brought to
the knowledge of the adopting authority if the latter is an
authority other than that which has prepared the legis-
lative provisions concerned.

Article 5

1.

This Decision shall apply from 1 January 1999.

2. Decision 93/717/EC shall be repealed with effect
from 1 January 1999.

Article 6

This Decision is addressed to the Member States.

Done at Luxembourg, 29 June 1998.

For the Council

The President

R. COOK