Opinion of the European Central Bank at the request of the Ministry of the Economy, Finance and Industry of the French Republic under Articles 109l (2) and 109f (6) of the Treaty establishing the European Community and Article 1.1, second indent, of the Council Decision 93/717/EC on a draft Decree modifying the Decree of 3 December 1993 on the Banque de France (CON/98/62)
Date: 1998-12-30
Institutions: European Central Bank
Subjects: France, accounting, central bank, foreign-exchange reserves, national law

OPINION OF THE EUROPEAN CENTRAL BANK

at the request of the Ministry of the Economy, Finance and Industry of the French Republic

under Articles 109l (2) and 109f (6) of the Treaty establishing the European Community and

Article 1.1, second indent, of the Council Decision 93/717/EC

on a draft Decree modifying the Decree of 3 December 1993 on the Banque de France

CON/98/62

1.

On 14 December 1998 the European Central Bank (ECB) received a request from the Ministry

of the Economy, Finance and Industry of the French Republic for an ECB Opinion on a draft

Decree  modifying  the  Decree  of  3  December  1998  on  the  Banque  de  France  (hereinafter

referred to as the “Draft Decree”).

2.

In  accordance  with  Article 1091 (2)  of  the  Treaty  establishing  the  European  Community

(hereinafter referred to as the “Treaty”), the ECB has taken over the advisory functions of the

European Monetary Institute (EMI), which went into liquidation upon the establishment of the

ECB  on  1 June  1998.  The  ECB’s  competence  to  deliver  an  opinion  is  based  on  Article 1.1,

second indent, of the Council Decision (93/717/EC) of 22 November 1993 on the consultation

of the EMI by the authorities of the Member States on draft legislative provisions, as the Draft

Decree contains provisions concerning the status and powers of the Banque de France and the

instruments of monetary policy. In accordance with Article 17.5, first sentence, of the Rules of

Procedure  of  the  ECB,  this  ECB  Opinion  has  been  adopted  by  the  Governing  Council  of  the

ECB. 

3. 

The  ECB  understands  that  the  Draft  Decree  is  intended  to  change  the  provisions  of  Decree

No. 93-1278  of  3  December  1993,  implementing  the  Law  on  the  Statute  of  the  Banque  de

France, and, more precisely, the provisions of Title III – Budgetary and Internal Finance and

Title  IV –  Accounting  regime  of  the  Banque  de  France.  The  modifications  introduced  by  the

Draft Decree are essentially of a technical nature (accounting regime) or repeal legal acts which

will no longer be valid after the start of the third stage of Economic and Monetary Union.

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4. 

The  ECB  welcomes  the  Draft  Decree,  which  will  establish  the  legal  regime  for  a  modified

accounting  regime  of  the  Banque  de  France,  taking  into  account  general  accounting  and

reporting regime of the European System of Central Banks (ESCB).

5. 

The  ECB  understands  that  Articles  1  and  4  of  the  Draft  Decree  involve  only  changes  in

references made in the Decree of 3 December 1993 to the Article of the Law on the Statute of

the Banque de France referring to the agreement signed between the Banque de France and the

State for the management of the foreign reserves of the State. These modifications are the result

of  amendments  made  in  the  articles  of  the  Statute  of  the  Banque  de  France  concerning  this

agreement (Law of 12 May 1998). They do not entail any modifications to the substance of the

previous text.

6. 

The  ECB  welcomes  Article  2  of  the  Draft  Decree,  which  (i) deletes  the  reference  previously

made  to  Article  16,  first  indent,  of  the  French  Code  of  Commerce,  which  states  that  French

companies  shall  produce  their  financial  statements  in  French  francs  and  in  French  language;

(ii) states the obligation for the Banque de France to establish its financial statements in euro

and in French language; and (iii) deletes any reference to sub-divisions of the item “own funds”

in the balance sheet of the Banque de France.

7. 

The  ECB  welcomes  Article  3  of  the  Draft  Decree,  which  explicitly  takes  into  account  the

submission of the accounting regime of the Banque de France to the mandatory accounting and

valuation  rules  of  the  ESCB.  Operations  other  than  those  which  are  regulated  by  mandatory

rules adopted by the ECB will still be regulated according to the new legal regime implemented

in  France  in  the  field  of  accounting  (Law  of  6  April  1998,  which  created  the  Committee  for

Accounting  Regulations,  vested  with  regulatory  powers).  The  Banque  de  France  also  has  the

option of deciding upon adopting non-mandatory accounting rules of the ESCB.

8. 

The ECB understands that Article 5 of the Draft Decree is a purely technical provision deleting

the provision contained in the previous Decree concerning the date of its entry into force.

9. 

The ECB welcomes Article 6 of the Draft Decree, which states  that  the  independent  external

auditors of the Banque de France shall be appointed by the General Council of the Banque de

France in accordance with the relevant provisions of Article 27.1 of the Statute of the European

System  of  Central  Banks  and  of  the  European  Central  Bank  (hereinafter  referred  to  as  the

“Statute”).

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10.  The  ECB  takes  note  that  Article  7  of  the  Draft  Decree  is  not  related  to  accounting  matters.

Article 7 repeals Article 13 of the Decree of 24 July 1984, which vested the Banque de France

with  the  power  to  enter  into  an  agreement  to  delegate  to  the  Institut  d’émission  des

départements  d’outre-mer  (IEDOM)  and  to  the  Institut  d’émission  d’outre-mer  (IEOM)  the

power to define a system of minimum reserves. The ECB recalls that, according to the Treaty,

for those territories which are part of the Community, the Banque de France will no longer have

any  power  to  delegate  to  the  IEDOM,  given  the  fact  that  the  power  to  impose  a  minimum

reserves  system  will  have  been  transferred  to  the  Community  in  accordance  with  the  Treaty.

The ECB takes note that, for those territories which are not part of the Community, the Banque

de France will no longer be vested with the power to delegate to the IEOM the power to impose

a minimum reserve system. The ECB concludes that, from 1 January  1999,  the  imposition  of

the minimum reserve system defined by the Governing Council of the ECB, in accordance with

the  Treaty,  will  be  implemented  by  the  Banque  de  France  in  those  territories  of  the  French

Republic in which the IEDOM was previously delegated by the Banque de France the power to

define and implement a minimum reserve system.

The ECB takes note that the definition and implementation of  a  minimum  reserves  system  to

credit  institutions  located  outside  the  Community,  which  was  previously  delegated  to  the

IEOM, does not fall within the field of competence of the ECB, as long as it does not conflict

with the provisions of the Statute.

11.  The ECB understands that Article 8 of the Draft Decree is a purely technical provision deleting

the  provision  of  the  previous  Decree  on  the  publication  in  the  Official  Journal  of  the  French

Republic  of  decisions  of  the  governing  bodies  of  the  Banque  de  France  concerning  the

minimum reserve system and the features of new banknotes issued by the Banque de France. 

12.  The  ECB  confirms  that  it  has  no  objection  to  this  ECB  Opinion  being  made  public  by  the

competent national authorities at their discretion.

Done at Frankfurt am Main on 30 December 1998.

The President of the ECB

[signed]

Willem F. Duisenberg