WRITTEN QUESTION E-0258/02 by Christopher Huhne (ELDR) to the Commission. Seignorage revenue forecast in 2002.
Date: 2002-02-07
Institutions: European Parliament, Provisional data
Subjects: EU Member State, European Central Bank, European System of Central Banks, central bank, issuing of currency

5.12.2002

EN

Official Journal of the European Communities

C 301 E/35

The Commission does not have detailed information about transfers or dividends paid by all the

3.
Member States’ central banks to fiscal authorities during the year.

Given that the subject of these questions is monetary income (seigniorage), one should note that transfers
between central banks and fiscal authorities are not entirely determined by monetary income. Central bank
profits, which are the basis for transfers, usually differ from monetary income. Central bank profits depend
on the asset structure of central banks (in particular on foreign assets, exchange rates, maturity of assets),
on the return on central bank capital (foreign currency and gold), and on the costs of central banking.
Thus, central bank profits can vary between countries and years even if monetary income has remained
unchanged.

(2002/C 301 E/035)

WRITTEN QUESTION E-0258/02

by Christopher Huhne (ELDR) to the Commission

(7 February 2002)

Subject: Seignorage revenue forecast in 2002

1. Will the Commission estimate the seignorage revenue accruing to each Member State’s central bank
either on the basis of a forecast for 2002 (taking into account the new key for sharing seignorage revenue
of the European Central Bank) or on the basis of applying the new key to the actual seignorage revenue in
2001?

2. Will it express this as a proportion of GDP in each case?

Answer given by Mr Solbes Mira on behalf of the Commission

(20 March 2002)

1.
The calculation of monetary income (often called seigniorage) belongs to the responsibility of the
European System of Central Banks (hereafter: Eurosystem). It is up to the central banks of the Eurosystem
to apply the coefficients of the adjustment scheme the Governing Council has agreed upon in December
2001. Moreover, such estimates would have to depend on interest
rate assumptions, which the
Commission has decided not to publish on a regular basis as the European Central Bank (ECB) has full
responsibility for setting interest rates in the euro area. They would also crucially depend on the forecast of
the development of the monetary base in the euro area in the year 2002, which appears to be difficult to
provide given extraordinary circumstances (e.g. euro cash changeover, dual currency period).

For these reasons the Commission is not in a position to provide estimates of monetary income accruing
to each Member State. In that regard it should be noted that even central banks of the Eurosystem have
informed the public that they cannot give definite calculations so far (e.g. Bundesbank Governor Welteke
at the occasion of the press conference on 13 December 2001).

With respect to the formula that will be used to allocate monetary income one should keep in mind that
the coefficient applicable to monetary income in the year 2002 has been set to unity, i.e. the old and the
new allocation patterns are identical
Journal of the European
Communities (1)).

in 2002 (for details see: the Official

2.

In accordance with the reply to the first question no such data can be provided.

(1) OJ L 337, 20.12.2001.