Opinion of the European Central Bank of 26 October 2000 at the request of the Austrian Ministry of Justice pursuant to the second indent of Article 105(4) of the Treaty establishing the European Community and the second indent of Article 4(a) of the Statute of the European System of Central Banks and of the European Central Bank on a draft federal law containing ancillary measures for the introduction of the euro to be inserted in the legislation on cooperatives and amending the Act on Commercial and Industrial Cooperatives and the 1997 Cooperatives Audit Act (Law on the introduction of the euro in connection with cooperatives - Euro-GenBeG) (CON/00/25)
Date: 2000-10-26
Institutions: European Central Bank
Subjects: Austria, cooperative, euro, monetary integration, money, national law

OPINION OF THE EUROPEAN CENTRAL BANK

of 26 October 2000

at the request of the Austrian Ministry of Justice pursuant to the second indent of Article 105(4)

of the Treaty establishing the European Community and the second indent of Article 4(a) of the

Statute of the European System of Central Banks and of the European Central Bank on a draft

federal law containing ancillary measures for the introduction of the euro to be inserted in the

legislation on cooperatives and amending the Act on Commercial and Industrial Cooperatives

and the 1997 Cooperatives Audit Act (Law on the introduction of the euro in connection with

cooperatives - Euro-GenBeG)

CON/00/25

1. 

On  5  October  2000  the  European  Central  Bank  (ECB)  received  a  request  from  the  Austrian

Ministry of Justice for an ECB opinion on a draft federal law containing ancillary measures for

the introduction of the euro to be inserted in the legislation on cooperatives and amending the

Act on Commercial and Industrial Cooperatives and the 1997 Cooperatives Audit Act (the draft

law).

2. 

The  ECB’s  competence  to  deliver  an  opinion  is  based  on  the  first  indent  of  Article 2(1)  of

Council  Decision  98/415/EC  of  29 June  1998  on  the  consultation  of  the  ECBank  by  national

authorities  regarding  draft  legislative  provisions1,  as  the  legislative  proposal  contains

provisions concerning currency matters. The  Governing  Council  of  the  ECB  has  adopted  this

opinion in accordance with the first sentence of Article 17.5 of the ECB’s Rules of Procedure.

3. 

The  purpose  of  the  draft  law  is  to  pattern  for  cooperatives  the  ancillary  measures  for  the

introduction of the euro which have been introduced by the 1.Euro-Justiz-Begleitgesetz (BGBl.

I Nr. 125/1998)2 for joint stock companies. The draft law aims at making the euro available for

cooperatives as soon as possible. In this context, the draft law contains provisions concerning

the conversion of shareholdings, decisions thereon, accounting of conversion gains, as well as

special provisions relating to legislation on cooperatives. The straight conversion of amounts in

1 OJ L 189, 3.7.1998, pp. 42-43.
2  On  the  1.Euro-Justiz-Begleitgesetz  the  European  Monetary  Institute  was  consulted  and  has  delivered  an

opinion on 13 February 1998 (CON/98/01).

                                                          
schillings  would  result  in  amounts  in  euro  that  are  not  whole  numbers.  To  facilitate  the  of

adjustment  of  shares  that  are  not  whole  numbers,  the  draft  law  provides  for  simplified

procedures. These are, however, only to apply if amounts of shares are only to be increased or

reduced to the extent necessary to reach the nearest whole number of euro. In case of upward

adjustment  in  this  context,  cash  contributions  are  the  normal  procedure,  but  for  ease  of

processing, the required amounts can also be covered from free reserves or net profit. In case of

downward adjustment to the nearest whole number of euro, the draft law suggests two possible

ways of appropriating the amounts. The amounts can (i) be allocated to an appropriated capital

reserve;  or  (ii)  be  immediately  paid  out  to  the  members  of  the  cooperative.  Furthermore,  the

draft law addresses the replacement of schilling amounts with euro amounts.

4. 

The ECB welcomes the draft law which not only provides for technical adaptations such as the

replacement of schilling amounts with euro amounts, but also aims at complying with Council

Regulation (EC) No 1103/97 of 17 June 1997 on certain provisions relating to the introduction

of the euro3 and Council Regulation (EC) No 974/98 of 3 May 1998 on the introduction of the

euro4. In this context, the draft Law addresses  in its explanatory memorandum issues such as

the continuity of contracts, the replacement of the Austrian schilling by the euro, rounding as

well as the principle of “no prohibition no compulsion”.

5. 

The ECB notes that the draft law does not contain specific rounding provisions but makes, in its

explanatory  memorandum,  reference  to  Articles  4  and  5  of  Council  Regulation  (EC)  No

1103/97.

6. 

The  ECB  confirms  that  it  has  no  objections  to  this  ECB  opinion  being  made  public  by  the

competent national authorities.

Done at Frankfurt am Main on 26 October 2000.

3 OJ L 162, 19.6.1997, pp. 1-3.

4 OJ L 139, 11.5.1998, pp. 1-5.

The President of the ECB

[signed]

Willem F. DUISENBERG

2