WRITTEN QUESTION No. 136/99 by Antoni GUTIÉRREZ DÍAZ The CFA franc
Date: 1999-02-11
Institutions: European Parliament, GUTIERREZ DIAZ
Subjects: ACP countries, Central Africa, Comoros, France, West African Economic and Monetary Union, central bank, exchange rate, financial agreement, monetary union, national currency

12.11.1999

EN

Official Journal of the European Communities

C 325/75

Answer given by Mr Fischler on behalf of the Commission

(4 March 1999)

To supplement the answer already given to Written Question E-3429/98 from the Honourable Member about
the financial aspects of the reform of the common organisation of the market in wine as part of the Agenda
2000 package, and in particular in response to his final question about possible support measures for the
whisky industry, the Commission would like to state the following:

The common organisation of the market in wine as currently in force includes the possibility of granting aid to
rationalise the table-wine market through the distillation of surpluses. The existing regime has not modified in
any fundamental way the balance among the various products of distillation. In fact, the market share for
distilled wine has shrunk somewhat.

The draft reform of the wine market organisation is designed to maintain this fundamental balance by
supporting a traditional outlet (distilling of wine to alcohol products for human consumption) without which
this balance would be compromised.

Spirit drinks, however, because they are not listed in Annex II to the EC Treaty, cannot be given direct
agricultural support.

The Commission wishes to point out, finally, that whisky does qualify for export refunds under the common
organisation of the market in cereals.

(1999/C 325/095)

WRITTEN QUESTION E-0136/99

by Antoni Gutiérrez Díaz (GUE/NGL) to the Commission

(11 February 1999)

Subject: The CFA franc

With the arrival of the euro, the French franc and the French Central Bank will disappear. At the 27th ACP-EU
Joint Assembly of 21 to 24 September 1998, a final resolution was adopted on the issue of the euro and the
CFA franc, calling on the Commission to study the potential effects of including the CFA franc in the euro.

What currency will the CFA franc have in future, and who will control this franc, which is used in all the
former French colonies? Which bank will take receipt of and hold payments made by companies importing
African products, when the companies concerned are located outside the ACP countries and France?

Answer given by Mr de Silguy on behalf of the Commission

(10 March 1999)

France had concluded a number of exchange rate agreements with the ‘Union économique et monétaire ouest-
africaine’ (UEMOA), the ‘Communauté économique et monétaire de l’Afrique Centrale’ (CEMAC) and with the
Republic of the Comores. Given that since 1 January 1999, the Community has exclusive competence for
exchange rate matters for Member States which have adopted the euro, a Council decision was required to
confirm the continuation of the present arrangements concerning the CFA franc and the Comorian franc.

Following consultations with Member States, the Commission has on 1 July 1998 adopted a recommendation
for a Council decision to confirm the future relations between the euro and the CFA franc and the Comorian
franc. Following consultation of the European central bank, the Council has adopted the decision on
23 November 1998.

The decision confirms that France may continue its present agreements with the UEMOA, the CEMAC and the
Comores. It also stipulates that France and the African signatories to the agreements shall retain sole
responsibility for the implementation of these agreements. This implies that the legal status of the CFA franc
and the Comorian franc has not been altered by the introduction of the euro and that the central banks of the
UEMOA, the CEMAC and the Comores continue to be obliged to hold a part of their foreign assets in their
operations accounts with the French Treasury according to the provisions of the agreements.