Opinion of the European Central Bank of 18 October 2000 on a draft law concerning the introduction of the euro in Mayotte and Saint Pierre-et-Miquelon, draft decree concerning the introduction of the euro in Mayotte and Saint Pierre-et-Miquelon and a related draft decision of the Governor of the Banque de France (CON/00/19)
Date: 2000-10-18
Institutions: European Central Bank
Subjects: France, Mayotte, Saint Pierre and Miquelon, central bank, conversion rate, euro, money, national implementing measure, single monetary policy

LS/00/936

Monsieur Jean-Pierre Jouyet
Directeur du Trésor
Ministère de l’Economie,
des Finances et de l’Industrie
139, rue de Bercy
F-75572 Paris Cedex 12
FRANCE

Draft  law  concerning  the  introduction  of  the  euro  in  Mayotte  and  Saint  Pierre-et-Miquelon,

draft  decree  concerning the introduction of the  euro  in Mayotte  and  Saint  Pierre-et-Miquelon

and a related draft decision of the Governor of the Banque de France

Dear Mr Jouyet,

On 19 September 2000 the European Central Bank (ECB) received your revised request for agreement

on  a  draft  law  concerning  the  introduction  of  the  euro  in  Mayotte  and  Saint-Pierre-et-Miquelon

(hereinafter, the "draft law"), on the draft decree concerning the introduction of the euro in Mayotte

and  Saint-Pierre-et-Miquelon  (hereinafter,  the  "draft  decree")  and  a  related  draft  decision  of  the

Governor of the Banque de France (hereinafter, the "draft decision") pursuant to Article 4 of Council

Decision  1999/95/EC  of  31  December  1998  concerning  the  monetary  arrangements  in  the  French

territorial  communities  of  Saint-Pierre-et-Miquelon  and  Mayotte  (hereinafter,  "Council  Decision

1999/95/EC").  As a step towards reaching an agreement on the above-mentioned draft legal acts, may

I therefore make the following observations.

The ECB understands that the three draft legal instruments are intended to ensure that those parts of

Community law which are or will be necessary for the functioning of economic and monetary union

are  applied  in  Mayotte  and  Saint-Pierre-et-Miquelon.    The  draft  law  will  make  applicable  the

provisions contained in Council Regulation (EC) No 1103/97 of 17 June 1997 on certain provisions

relating to the introduction of the euro and Council Regulation (EC) No 974/98 of 3 May 1998 on the

introduction of the euro.  In addition, Article 8 of the draft law stipulates that the Governor of Banque

de France shall apply the measures necessary for performing the tasks laid down in Chapter 1 of Law

No 93-980 of 4 August 1993 concerning the Statute of the Banque de France in order to ensure that

these  provisions  give  rise  to  the  same  effects  as  in  metropolitan  France.  Article  9  of  the  draft  law

stipulates that the Government shall similarly apply in these two communities the provisions for which

he is competent required for the introduction of the euro so that these provisions have the same effect

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therein  as  in  metropolitan  France.    The  draft  decree  will  make  applicable  Article  1  of  Council

Regulation (EC) No 2866/98 of 31 December 1998 on the conversion rates between the euro and the

currencies of the Member States adopting the euro as amended and the second sentence of Article 11

of  Council  Regulation  (EC)  No  974/98.    Finally,  the  draft  decision  will  make  applicable  three
Council Regulations, three ECB Regulations and one ECB Decision1.  This decision ensures that the

minimum reserve system, the ECB's ability to impose sanctions, the statistical reporting requirements

and  the  rules  concerning  banknotes  are  applied  in  the  same  way  in  Mayotte  and  Saint-Pierre-et-

Miquelon as in metropolitan France.

The  ECB  welcomes  the  fact  that  France,  in  order  to  comply  with  Article  4  of  Council  Decision

1999/95/EC  in  Mayotte  and  Saint-Pierre-et-Miquelon,  is  starting  to  ensure  the  application  of  those

parts of Community law which are or will be necessary for the functioning of economic and monetary

union. 

In its present form, the draft law and the draft decree provide for the application of the three Council

Regulations  No  2866/98,  No  1103/97  and  No  974/98  in  Mayotte  and  Saint-Pierre-et-Miquelon  by

means of a transposing law which reproduces these provisions, while future amendments to the three

Council Regulations will need to be reproduced again by a new transposing French law.  However, the

ECB considers that the draft law, the draft decree and any other future similar law should (i) merely

state that these Community legal acts are applicable in these territories, identifying them but without

reproducing  or  attaching  to  the  law  the  legislation  referred  to;  and  (ii)  include  a  dynamic  clause

ensuring  that  any  future  amendments  to  these  Community  legal  acts  will  apply  directly  in  these

territories without any further need for implementation.  Such an approach would be preferable as it

would  ensure  legal  certainty  concerning  the  powers  of  the  Community  in  these  matters,  equal

treatment with the euro area Member States and the integrity of single monetary policy. 

In this regard, the  ECB  has  been informed  that  the  French  Council  of  State  has  adopted  an  opinion

according  to  which  the  introduction  of  the  euro  in  Mayotte  and  Saint-Pierre-et-Miquelon  could  not

take, as the  ECB  would  prefer, the form  of  a  law  which  merely  makes  the  provisions  of the Treaty

relating to economic and monetary union and its secondary legislation applicable to these communities

but that instead, the Council of State considers it necessary that the transposition law itself contain the

Community provisions to be applied in those territories.  The Council of State argues that a Member

1  Council  Regulation  (EC)  No  2531/98  of  23  November  1998  concerning  the  application  of  minimum  reserves  by  the
European Central Bank, Council Regulation (EC) No 2532/98 of 23 November 1998 concerning the powers of the European
Central Bank to impose sanctions, Council Regulation (EC) No 2533/98 of 23 November 1998 concerning the collection of
statistical  information  by  the  European  Central  Bank,  Regulation  (EC)  No  2818/98  of  the  European  Central  Bank  of  1
December 1998 on the application of minimum reserves, the Regulation (EC) No 2157/99 of the European Central Bank of
23 September 1999 on the powers of the European Central Bank to impose sanctions as being amended,  Regulation (EC) No
2819/98  of  the  European  Central  Bank  of  1  December  1998  concerning  the  consolidated  balance  sheet  of  the  monetary
financial institutions sector as being amended as well as the Decision of the European Central Bank of 7 July 1998 on the
denominations, specifications, reproduction, exchange and withdrawal of euro banknotes as amended.

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State  cannot  proceed  unilaterally  to  an  extension,  even  partial,  of  a  Treaty;  in  its  view,  the

modification  of  the  geographical  application  of  a  Treaty  constitutes  a  revision  of  that  Agreement,

which operates in international law between the contracting parties and in principle according to the

clauses providing for this in the Treaty itself. 

However,  taking  into  account  that  on  31  December  1998  the  Council  of  the  European  Union

unanimously  agreed  on  Article  123  (4)  EC  (Article  109l  (4))  of  the  EC  Treaty)  as  the  proper  legal

basis for the introduction of the euro in Mayotte and Saint-Pierre-et-Miquelon, the ECB considers that

it is legally  consistent  with  Community  law  that  France, as  mandated  by  the  European  Community,

merely makes the provisions of the Treaty relating to economic and monetary union, and its secondary

legislation,  applicable  to  these  communities  through  the  draft  law.    Under  these  circumstances,  the

inclusion  of  a  dynamic  clause  ensuring  the  direct  applicability  of  any  future  amendments  to  this

Community legislation in the above-mentioned territories seems to be perfectly feasible.

Having  said  this,  the  ECB  would  be  prepared  to  accept  the  proposed  approach  as  a  possible

implementation of Article 4 of Council Decision 1999/95/EC on the understanding that this is the only

approach that is feasible under French law.   In  this  case  however,  the  following  amendments  to  the

draft texts would need to be made. 

First, in Article 1 of the draft law, the words "or centimes" need to be deleted to bring the text in line

with Council Regulation (EC) No 974/98 of 3 May 1998 that stipulates that "one euro shall be divided

into one hundred cent".

Second, Articles 8 and 9 of the draft law would need to be amended in order to ensure not only that the

relevant Community laws already in force are applied in Mayotte and St. Pierre et Miquelon but also

that any amendments to these laws and also any future Community laws which are necessary for the

functioning  of  economic  and  monetary  union  give  rise  to  the  same  effect  and  enter  into  force  in

Mayotte and St. Pierre et Miquelon at the same time as in metropolitan France.  To this end, Articles 8

and 9 of the draft law should be amended as follows:

Article 8 of the draft law: "The Governor of the Banque de France shall apply in the territorial

communities of Saint-Pierre-et-Miquelon and Mayotte the measures necessary for performing

the tasks laid down in Chapter 1 of Law No. 93-980 of 4 August 1993 concerning the Statute

of the Banque de France, in particular those which are or will be necessary for the functioning

of  Economic  and  Monetary  Union,  in  order  to  ensure  that  these  provisions  give  rise  to  the

same and simultaneous effect as in metropolitan France."

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Article 9 of the draft law: "The Government shall similarly apply in these two communities

the provisions for which he is competent required for the introduction of the euro and which

are or will be necessary for the functioning of economic and monetary union, and which are

not  already  covered  by  Article  8,  in  order  to  ensure  that  these  give  rise  to  the  same  and

simultaneous effect  as in metropolitan France".

Finally,  the  ECB  considers  that  the  draft  law  and  the  draft  decree  should  indicate  the  Community

origin of the legal text. The ECB understands that the implementation of Article 8 of the draft law by

the draft decision of the Governor of the Banque de France, which has been attached for reasons of

example only, will be subject to a separate consultation by the Banque de France.

If  the  above  suggested  changes  were  to  be  taken  on  board,  I  believe  that  the  ECB  would  be  in  a

position  to  give  its  agreement  as  required  by  Article  4  of  Council  Decision  1999/95/EC.    I  look

forward to hearing from you in due course with a view to agreeing a revised version of the legislative

framework as soon as possible.

Yours sincerely

[signed]

Willem F. Duisenberg

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