Commission opinion on a recommendation of the European Central Bank for a Council Regulation concerning further calls of foreign reserves assets by the European Central Bank
Date: 2000-03-08
Institutions: European Commission
Subjects: European Central Bank, capital increase, foreign-exchange reserves

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 08.03.2000
COM(2000) 124 final

COMMISSION OPINION

on a recommendation of the European Central Bank for a Council Regulation
concerning the limits and conditions for capital increases of the European Central Bank

COMMISSION OPINION

on a recommendation of the European Central Bank for a Council Regulation
concerning further calls of foreign reserves assets by the European Central Bank

(presented by the Commission)

COMMISSION OPINION

on a recommendation of the European Central Bank for a Council Regulation
concerning the limits and conditions for capital increases of the European Central Bank

In a letter dated 23 February 1999, the Council requested the opinion of the Commission on a
recommendation of the European Central Bank (ECB) for a Council Regulation concerning
the limits and conditions for capital
increases of the ECB. The competence of the
Commission to deliver an opinion on this recommendation follows from Article 107(6) of the
Treaty in connection with Article 28.1 of the Statute of the European System of Central Banks
and the European Central Bank.

On 08.03.2000 the Commission has adopted the following opinion:

1.

2.

3.

4.

5.

6.

7.

Noting the competing rights of initiative of the Commission and the ECB, the
Commission agrees with the initiative taken by the ECB.

Given the nature and size of the ECB’s operations, it is justified to enable the ECB to
increase its capital when this is deemed necessary by the ECB itself.

The recommended limit of

€

10,000 million is appropriate.

The Commission also agrees that it is neither necessary nor advisable to stipulate
conditions for the increase of the capital.

However, the Commission considers that the implications of a capital increase for the
budgets of Member States should be clarified.

Recital No 2 should be redrafted. It is written there that Article 28.1 of the ESCB
Statute “requires” the Council to set limits and conditions for the ECB’s capital
increases, whereas the word “requires” is not used in the Statute.

Since no conditions are fixed, it would seem appropriate in the title to delete the
words “the limits and conditions for”.

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COMMISSION OPINION

on a recommendation of the European Central Bank for a Council Regulation
concerning further calls of foreign reserves assets by the European Central Bank

In a letter dated 14 October 1999, the Council requested the opinion of the Commission on a
recommendation of the European Central Bank (ECB) for a Council Regulation concerning
further calls of foreign reserves assets by the ECB. The competence of the Commission to
deliver an opinion on this recommendation follows from Article 107(6) of the Treaty in
connection with Article 30.4 of the Statute of the European System of Central Banks and the
European Central Bank.

On 08.03.2000 the Commission has adopted the following opinion:

1.

2.

3.

Noting the competing rights of initiative of the Commission and the ECB, the
Commission agrees with the initiative taken by the ECB.

The Commission supports the doubling of the limit for calls of foreign reserve assets
by the ECB to the extent that these further calls serve to replenish holdings of reserve
assets up to the initial limit of

50,000 million fixed in the ESCB Statute.

€

Recital No 2 should be redrafted. It is written there that Article 30.4 of the ESCB
Statute “requires” the Council to specify the limits and conditions for further calls of
foreign reserve assets, whereas the word “requires” is not used in the Statute.

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