Opinion of the Commission pursuant to Article 251(2) (c) of the EC Treaty, on the European Parliament's amendments to the Council's common position regarding the proposal for a Directive of the European Parliament and of the Council on the taking up, the pursuit and the prudential supervision of the business of electronic money institutions and for a Directive of the European Parliament and of the Council amending Directive 77/780/EEC on the co-ordination of laws, regulations and administrative provisions relating to the taking up and pursuit of the business of credit institutions, amending the proposal of the Commission pursuant to Article 250(2) of the EC Treaty
Date: 2000-05-29
Institutions: European Commission
Subjects: approximation of laws, banking, credit institution, electronic money, freedom to provide services

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 29.05.2000
COM(2000) 333 final

1998/0252 (COD)
1998/0253 (COD)

OPINION OF THE COMMISSION

pursuant to Article 251 (2) (c) of the EC Treaty,
on the European Parliament's amendments
to the Council's common position regarding the
proposal for a

DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

on the taking up, the pursuit and the prudential supervision of the business of electronic
money institutions

and for a

DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

amending Directive 77/780/EEC on the co-ordination of laws, regulations and
administrative provisions relating to the taking up and pursuit of the business of credit
institutions

AMENDING THE PROPOSAL OF THE COMMISSION
pursuant to Article 250 (2) of the EC Treaty

1.

INTRODUCTION

Article 251(2)(c) of the EC Treaty lays down that the Commission shall deliver an opinion on
the amendments proposed by the European Parliament at second reading.

The Commission sets out its opinion below on the 2 amendments proposed by Parliament.

2.

1.

2.

3.

4.

5.

6.

7.

3.

BACKGROUND

1998

21 September

the Commission

On
a
European Parliament and Council Directive on the taking up, the pursuit and the
prudential supervision of the business of electronic money institutions and a proposal
amending Council Directive 77/780/EC on the co-ordination of laws, regulations and
administrative provisions relating to the taking up and pursuit of the business of
credit institutions (COM (1998)461 - 1998/0252/COD - 1998/0253/COD).

proposal

adopted

for

a

The Council began to examine the proposals on 19 October 1998.

At its Plenary Session on 19 January 1999 the Economic and Social Committee
adopted a favourable opinion on the Commission proposals.

The European Central Bank gave its opinion on 18 January 1999.

The European Parliament adopted the legislative resolution (first
introducing twenty-five amendments on 15 April 1999. (PE A4-156/99)

reading)

On 29 November 1999 the Council adopted a common position.

On 11 April 2000 the European Parliament adopted amendments to the common
position which are the subject of this Communication.

PURPOSE OF THE COMMISSION PROPOSALS

The main purpose of the proposal is to create a harmonised single market in the provision of
electronic money in the European Union. The proposal deals only with the regulatory and
prudential issues relating to non-bank issuance of electronic money. However, as it is clear
that traditional credit institutions too will play an important part in this segment of retail
financial business, the fundamental rules concerning free circulation under the principle of
mutual recognition and the supervisory regime to which they are subject, such as
authorisation, capital requirement, supervision etc. should also be applied in an appropriate
way to electronic money institutions.

The proposal to amend the definition of credit institution in the First Banking Directive to
to issue
allow institutions, which are not willing to enter into full banking operations,
electronic money under the fundamental rules governing all other credit institutions will
promote the harmonious development of the activities of all credit institutions throughout the
in particular as regards the issuance of electronic money, and will avoid
Community,
distortion of competition between electronic money institutions even as regards the
application of monetary policy requirements.

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4.

OPINION OF THE COMMISSION ON THE AMENDMENTS BY THE EUROPEAN
PARLIAMENT

4.1

General considerations

The 2 amendments involve no change of substance but merely clarify a point which was
already included in the common position: electronic money not used by the bearer must be
redeemed at par value, i.e. with no depreciation against the value expressed in the issuing
currency.

4.2

The European Parliament’s amendments

The two amendments concern

–

–

the addition of a new recital 9a to read: "Redeemability should always be
understood to be at par value";

amendment, to the same end, of Article 3(1) to read: "1. A bearer of electronic
money may, during the period of validity, ask the issuer to redeem it at par
value in coins and bank notes or by a transfer to an account free of charges
other than those strictly necessary to carry out that operation".

5.

CONCLUSION

The amendments involve no change of substance. The Commission can accept them.

Under the terms of Article 250(2) of the EC Treaty, the Commission amends its proposal in
accordance with the above.

3