Opinion of the European Central Bank at the request of the Council of the European Union under Article 109l(4) of the Treaty establishing the European Community on a proposal for a Council Decision concerning the monetary arrangements in the French territorial communities of Saint-Pierre-et-Miquelon and Mayotte
Date: 1998-12-30
Institutions: European Central Bank
Subjects: Council of the European Union, European Central Bank, Mayotte, Saint Pierre and Miquelon, monetary agreement, proposal (EU)

7.5.1999

EN

Official Journal of the European Communities

C 127/5

OPINION OF THE EUROPEAN CENTRAL BANK

at the request of the Council of the European Union under Article 109l(4) of the Treaty estab-
lishing the European Community on a proposal for a Council Decision concerning the monetary
arrangements in the French territorial communities of Saint-Pierre-et-Miquelon and Mayotte

(1999/C 127/06)

1. On 22 December 1998 the European Central Bank (ECB)
received a request from the Council of the European Union
for an ECB Opinion on a proposal for a Council Decision
concerning the monetary arrangements in the French terri-
torial communities of Saint-Pierre-et-Miquelon and Mayotte
(COM(1998) 801 final).

the (cid:145)Treaty(cid:146)).

referred to as

2. The ECB’s competence to deliver an opinion is based on
the Treaty establishing the European
Article 109l(4) of
Community (hereinafter
In
accordance with Article 17.5, first sentence, of the Rules
this ECB opinion has been
of Procedure of
adopted by the Governing Council of the ECB. It is only
in the context of
the
changeover
the ECB has agreed to
comply with request of the Council and adopt its opinion
within the very short deadline established in the consul-
tation request.

the exceptional circumstances of

to the euro that

the ECB,

the Treaty, provides for the extension of

3. The draft Council Decision, which is based on Article
109l(4) of
the
euro area to the French territorial communities of Saint-
Pierre-et-Miquelon and Mayotte. It provides that the euro
will become the currency of Saint-Pierre-et-Miquelon and
Mayotte, circulate and have legal tender in these territories.
As a measure necessary for the introduction of the euro in
France, the draft Council Decision also aims to confer rights
and impose obligations on the ECB and the national central
banks,
in particular the obligation to carry out monetary
functions and operations of the European System of Central
Banks (ESCB) in Saint-Pierre-et-Miquelon and Mayotte

4. It may be questioned whether Article 109l(4) of the Treaty
provides a proper legal basis for extending the application of
Community law relating to the introduction of the euro
beyond the Community territory and for imposing obli-
gations on the ECB and the national central banks to
carry out functions and operations of the ESCB, as laid
down in Chapter IV and Article 16 of the Statute of the
European System of Central Banks and of the European
in
Central Bank (hereinafter referred to as the (cid:145)Statute(cid:146)),
Saint-Pierre-et-Miquelon and Mayotte. These territories are
an integral part of France but do not form part of the
Statute
Community. The Treaty,
secondary
the
apply immediately or
Community legislation do not
directly in these territories. Article 105(2) of the Treaty,
for example, confines the basic tasks of
for
example, to define and implement monetary policy, terri-
In addition, Article 109l(4)
torially to the Community.
the Community,
creates obligations only in a part of
namely the Member States having adopted the single
currency. According to Community law, these overseas terri-
tories have a special status.

the ESCB,

and

5. The ECB notes a clear contradiction between Article 6 and
the draft Council Decision: while Article 6

Article 3 of

points out that the Council Decision is addressed to France,
Article 3 imposes obligations on the ECB and the national
central banks. From a logical point of view, neither the ECB
nor the national central banks can be bound by decisions
addressed to France. From a legal point of view, a Council
Decision addressed to the ECB and the national central
banks for the monetary functions and operations of the
ESCB to be carried out outside the Community is incon-
sistent with the independence of the ECB and the national
central banks as laid down in Article 107 of the Treaty. The
ECB understands that no obligation can be imposed on the
ECB and the national central banks by means of a Council
Decision, and therefore suggests that
is
replaced by (cid:145)may(cid:146) in Article 3 of the draft Decision.

the word (cid:145)shall(cid:146)

6. The ECB notes with concern that a Council Decision is
being used to put in place an arrangement whereby the
specific parts of Community law which it is, or will be,
necessary to apply in Saint-Pierre-et-Miquelon and Mayotte
in order for Economic and Monetary Union to function
there are allowed to fall within the competence of France
and its national
te ECB and the
legislation, while
the European Communities will only be
Commission of
consulted. The ECB considers
the specific
it vital
application of the relevant Community law to be made in
agreement with the ECB and the Commission of
the
European Communities.

for

to adopt

7. The ECB notes with concern that the Commission of the
the Council
European Communities proposes
Decision without having a clear knowledge of the future
status and role of the Institut d’Emission des DØpartements
d’Outre-Mer (IEDOM), which France intends to reform, in
to achieve compatibility with the tasks
time,
assigned to the ESCB by the Treaty and the Statute. The
ECB notes
those tasks which fall within the
competence of the ESCB should be carried out exclusively
through the ECB and the national central banks.

in order

that all

8. This very special

the two French territorial
communities should not create a precedent for other cases
that may arise in the future.

case of

9. This Opinion will be published in the Official Journal of the

European Communities.

Done at Frankfurt on 30 December 1998.

Vice-President
of the ECB

C. NOYER

Member of the Executive Board
of the ECB

T. PADOA-SCHIOPPA