1999/95/EC: Council Decision of 31 December 1998 concerning the monetary arrangements in the French territorial communities of Saint-Pierre-et-Miquelon and Mayotte
Date: 1998-12-31
Institutions: Council of the European Union
Subjects: European Central Bank, France, Mayotte, Saint Pierre and Miquelon, euro, regional and local authorities

4. 2. 1999

EN

Official Journal of the European Communities

L 30/29

II

(Acts whose publication is not obligatory)

COUNCIL

COUNCIL DECISION

of 31 December 1998

concerning the monetary arrangements in the French territorial communities of
Saint-Pierre-et-Miquelon and Mayotte

(1999/95/EC)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European
Community, and in particular Article 109l(4),
third
sentence thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Central
Bank,

(1) Whereas according to Council Regulation (EC) No
974/98 of 3 May 1998 on the introduction of the
euro (1),
the euro will be substituted as from 1
January 1999 for the currency of each participating
Member State at the conversion rate;

(2) Whereas the Community will have competence for
monetary and exchange
in the
Member States adopting the euro as from that date;

rate matters

(3) Whereas the euro will be substituted for the French

franc on 1 January 1999;

(4) Whereas the French territorial communities (collec-
tivit(cid:130)s territoriales) Saint-Pierre-et-Miquelon and
Mayotte are an integral part of France; whereas they
do not form part of the Community; whereas the
monetary regime of Saint-Pierre-et-Miquelon and
Mayotte is not specified in the Treaty; whereas it is
necessary to clarify their monetary regime; whereas
these territorial communities should have the same
currency as metropolitan France;

(5) Whereas banknotes and coins denominated in
into circulation by the
French francs are put
Institut d’Emission des D(cid:130)partements d’Outre Mer

(1) OJ L 139, 11. 5. 1998, p. 1.

facilities

(IEDOM) in Saint-Pierre-et-Miquelon and, from 1
January 1999, in Mayotte; whereas financial institu-
tions located in these communities have access to
refinancing
in French francs with
IEDOM; whereas France intends to reform in time
the status and role of the IEDOM in order to
achieve compatibility with the tasks assigned to the
European System of Central Banks (ESCB) by the
Treaty and Protocol No 3;

(6) Whereas the euro should be the currency of these
communities; whereas France should grant legal
tender status to French franc banknotes and coins
and to euro banknotes and coins issued by the
ESCB and the Member States which have adopted
the euro;

the monetary policy of

(7) Whereas as from 1 January 1999 the ESCB defines
and implements
the
Community; whereas the European Central Bank
(ECB) and the national central banks may engage
in all types of banking transactions in relation to
institutions located in third countries;
financial
whereas they may also engage in these transactions
in territories of a Member State which are not part
of the Community; whereas they should make use
of this competence with respect to these communi-
ties; whereas in order to ensure the singleness of
the monetary policy of
the ESCB and a level
playing field for financial institutions located in the
euro area,
those parts of
is appropriate that
present and future Community law which are
necessary for the functioning of Economic and
Monetary Union be made applicable in Saint-
Pierre-et-Miquelon and Mayotte;

it

L 30/30

EN

Official Journal of the European Communities

4. 2. 1999

(8) Whereas

in Saint-
the monetary arrangements
Pierre-et-Miquelon and Mayotte need to be defined
by France by way of national legislation,

IV and Article 16 of the Statute of the ESCB and the
ECB.

HAS ADOPTED THIS DECISION:

Article 1

The euro shall be the currency of Saint-Pierre-et-
Miquelon and Mayotte.

Article 4

France in agreement with the Commission and the ECB
shall ensure that those parts of Community law which are
or will be necessary for the functioning of Economic and
Monetary Union are applied in Saint-Pierre-et-Miquelon
and Mayotte.

Article 2

Article 5

1.
France shall continue to grant the legal tender status
to banknotes and coins denominated in French francs in
Saint-Pierre-et-Miquelon and Mayotte until 30 June 2002
at the latest.

2.
From 1 January 2002 France shall grant legal tender
status to banknotes and coins denominated in euro in
Saint-Pierre-et-Miquelon and Mayotte.

Article 3

The ECB and the national central banks may carry out
the functions and operations of
the ESCB in Saint-
Pierre-et-Miquelon and Mayotte as laid down in Chapter

This Decision shall apply as from 1 January 1999.

Article 6

This Decision is addressed to the French Republic.

Done at Brussels, 31 December 1998.

For the Council

The President

R. EDLINGER