WRITTEN QUESTION E-3208/00 by Erik Meijer (GUE/NGL) to the Commission. The value of national currencies in the EU Member States following the rejection of the euro by the Danish electorate on 28 September 2000.
Date: 2000-10-17
Institutions: European Parliament, Provisional data
Subjects: enlargement of the Union, euro, exchange rate, money market, non-participating country (euro area), referendum, single monetary policy

8.5.2001

EN

Official Journal of the European Communities

C 136 E/203

Answer given by Mr Prodi on behalf of the Commission

(8 December 2000)

The Commission is collecting the information it needs to answer the question. It will communicate its
findings as soon as possible.

(2001/C 136 E/238)

WRITTEN QUESTION E-3208/00

by Erik Meijer (GUE/NGL) to the Commission

(17 October 2000)

Subject: The value of national currencies in the EU Member States following the rejection of the euro by

the Danish electorate on 28 September 2000

1.
In the light, inter alia, of the result of the Danish referendum and of opinion polls in other States, it
would appear that the replacement of national currencies by the euro meets with least opposition in
Member States and applicant countries which had a weak currency in the preceding period, and with most
opposition in Member States which had a strong currency at the outset. One factor that may weaken the
new currency is the fact that the populations of other Member States have not yet had the opportunity to
state their views. Is the Commission prepared to require that the populations of these Member States be
given the opportunity to express their opinion as to the desirability of the euro being introduced and
participation in this process by their countries, with a view to establishing reliably how viable a single
European currency is?

2.
Since the exchange rate was fixed at the end of 1998, the value of the euro has fallen by 25 %,
leaving it not only below the value of the US dollar, but also weakened vis-(cid:224)-vis the national currencies of
those EU Member States which have not so far committed themselves to membership of European
Monetary Union. This means that there is a psychological sense of defeat which may be self-perpetuating,
as well as a need to produce more banknotes and coins to represent any given value. Is the Commission (cid:129)
if the attempt to introduce a single currency is continued (cid:129) prepared to initiate steps to fix the value of
the euro, well in advance of the planned introduction date of 1 January 2002, at a level much higher than
(for example, twice as high as) the value assigned to it in 1998, so that this value remains lastingly higher
than that of the British pound or the US dollar, and the number of the soon to be needed coins and
banknotes is halved?

3. What other possible ways does the Commission see of ensuring in the short term that the exchange
value of the national currencies in the European Union Member States is brought into line with the
strength of their economies?

Answer given by Mr Solbes Mira on behalf of the Commission

(20 November 2000)

1.
Although public opinion regarding European integration and the adoption of the euro is regularly
assessed through the Eurobarometer surveys, the EC Treaty does not require that a Member State should
hold a referendum before deciding whether or not to adopt the euro, nor does the Commission propose to
introduce such a requirement. The issue of whether or not a referendum should be held before a Member
State adopts the euro is a matter for individual Member States. In any event, it should be noted that only
Denmark and the United Kingdom have opt-out clauses as far as membership of the euro is concerned.
Sweden, on the other hand, does not have an opt-out clause and will be required to adopt the euro once it
has met the convergence criteria. As far as the candidate countries for accession are concerned, none of
them has requested an opt-out clause for membership of the euro. Upon joining the Union, these countries
will be considered as countries with a derogation.

2.
There is widespread agreement that the euro is currently undervalued on foreign exchange markets
and that it has substantial scope to appreciate over the medium term. Nevertheless, under a floating
exchange rate regime, the short-term value of a currency is primarily determined by expectations in
foreign exchange markets. It would therefore not be appropriate to fix the external value of the currency,
nor does the Commission have any plans to do so.

C 136 E/204

Official Journal of the European Communities

EN

8.5.2001

The Commission itself does not have any instruments to affect the short-term value of the euro.
3.
However, as far as economic fundamentals are concerned, there are a number of factors which should tend
to encourage an appreciation of the euro over the medium-term. Firstly, growth in the euro area is strong
and core inflation is low. Secondly, there has been a significant amount of progress in fiscal consolidation
by Member States. Thirdly, structural reforms have improved (and will continue to improve) the supply
side in the euro area economy.

Although intervention in markets can, under certain circumstances, be a useful tool at the disposal of
policy makers, it is above all essential that macroeconomic policy (cid:129) both in the euro area and in other
major economies (cid:129) remains on a sound footing. The Commission has emphasized the principles of
stability oriented policies in its broad economic policy guidelines and it will continue to do so.

(2001/C 136 E/239)

WRITTEN QUESTION P-3209/00

by Raffaele Costa (PPE-DE) to the Commission

(6 October 2000)

Subject: Damage to human health and quality of dairy products

Given that:

(cid:129) Directive 92/46/EEC (1)

lays down minimum hygiene, health and quality requirements for the
production and placing on the market of milk and milk-based products. It stipulates that if such
products fail to meet the said requirements they should be set aside for zootechnical use.

(cid:129) The Italian Government, invoking Presidential Decree (DPR) No 54 of 1997, has not only transposed
the aforementioned directive in an inadequate manner (cid:129) as shown by the report drawn up by the
Food and Veterinary Office of the Commission in the wake of its inspection visit to Italy in March
1999 (cid:129) but has also done so three years after the deadline (Jan. 1994).

(cid:129) DPR 54/97 allows Directive 92/46/EEC to be waived pursuant to rules which conflict with Commu-
nity legislation, in that it allows inferior-quality, unsuitable milk (cid:129) in terms of its micro-bacteriological
composition (cid:129) to be used for the production not only of long shelf-life cheeses (primarily Grana
Padano and Parmigiano Reggiano) but also of other finished products (butter, cream, ricotta cheese)
made from dairy products such as cream and whey and placed on the market for direct use, thereby
contravening the aforementioned directive.

(cid:129) As regards the production of Grana Padano, the certifying authority for the granting of the PDO mark
(protected designation of origin) requires the use of copper machinery in breach of the provisions in
force, given that such machinery may transmit harmful copper salt particles to the cheese and whey.

The Commission:

(cid:129) Can it therefore express an opinion on the legitimacy of DPR 54/97 and on the consequent risk that
its application by way of derogation from the above-mentioned Community directive poses to
consumer health?

(cid:129) What measures does it intend to take to rectify the said breaches, which could damage human health

and undermine product quality?

(cid:129) What provisions will
appropriate rules?

it adopt to ensure that the PDO mark is granted in accordance with more

(1) OJ L 268, 14.9.1992, p. 1.