Proposal for a Council Regulation repealing Council Regulation (EEC) 3181/78 and Council Regulation (EEC) 1736/79 in the area of Monetary Policy
Date: 2005-11-30
Institutions: European Commission
Subjects: EC Regulation, EIB loan, European Monetary Cooperation Fund, European Monetary System, interest, repeal

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 30.11.2005 
COM(2005)611 final 

2005/0233(CNS) 

. 

Proposal for a 

COUNCIL REGULATION 

repealing Council Regulation (EEC) 3181/78 and Council Regulation (EEC) 1736/79  
in the area of Monetary Policy 

. 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

1)  CONTEXT OF THE PROPOSAL 

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•  Grounds for and objectives of the proposal 

Two  Council  Regulations  have  been  identified  as  being  obsolete  and  should  be 
proposed for abrogation. 

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•  General context 

130 

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In the context of the codification and simplification of the acquis communautaire, the 
Commission  has  reviewed  the  acquis  communautaire  in  the  field  of  economic  and 
financial affairs.  

•  Existing provisions in the area of the proposal 

Protocol on the Statute of the European System of Central Banks and of the European 
Central  Bank  (Art.  3)  (formerly  Protocol  on  the  Statute  of  the  European  Monetary 
Institute (Art. 1.3)). 

•  Consistency with other policies and objectives of the Union 

Not applicable. 

2)  CONSULTATION OF INTERESTED PARTIES AND IMPACT ASSESSMENT 

•  Consultation of interested parties 

219 

Not relevant 

•  Collection and use of expertise 

There was no need for external expertise. 

•  Impact assessment 

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For reasons of legislative technique, an express repeal is necessary.  

The proposal will reduce the existing acquis and thus simplify it. 

3)  LEGAL ELEMENTS OF THE PROPOSAL 

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•  Summary of the proposed action 

Council  Regulations  (EEC)  3181/78  of  18.12.1978  and  (EEC)  1736/79  of  3.8.1979 
have become obsolete and should be proposed for abrogation. 

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•  Legal basis 

The  Treaty  establishing  the  European  Community,  and  in  particular  Article  308 

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thereof. 

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•  Subsidiarity principle 

The proposal falls under the exclusive competence of the Community. The subsidiarity 
principle therefore does not apply. 

•  Proportionality principle 

The proposal complies with the proportionality principle for the following reason(s). 

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409 

510 

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520 

570 

Not applicable 

Not applicable 

•  Choice of instruments 

Proposed instruments: regulation. 

Other means would not be adequate for the following reason(s): 

Council Regulations must be repealed by a Council Regulation. 

4)  BUDGETARY IMPLICATION 

The proposal has no implication for the Community budget. 

5)  ADDITIONAL INFORMATION 

•  Simplification 

The proposal provides for simplification of legislation. 

Simplification  of  the  acquis  communautaire  in  the  field  of  economic  and  financial 
affairs. 

•  Repeal of existing legislation 

The adoption of the proposal will lead to the repeal of existing legislation. 

•  Detailed explanation of the proposal 

Council  Regulation  (EEC)  3181/78  of  18.12.1978  relating  to  the  European 
(1) 
monetary system gives the European Monetary Co-operation Fund (EMCF) the power 
to receive reserves from Member States and to issue ECUs. The tasks of EMCF were 
taken  over  by  EMI  and  subsequently  ECB  and  the  EMCF  was  dissolved.  Therefore, 
this Regulation is not relevant anymore. 

(2) 
Council Regulation (EEC) 1736/79 of 3.8.1979 on interest subsidies for certain 
loans granted under the European monetary system states that the Community should 
during a five-year period from its date of application, grant interest subsidies on certain 
types  of  loans  (EIB  loans  to  finance  investments  in  less  prosperous  Member  States, 

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inter alia in infrastructure). This time period of five years, which was not extended, has 
come  to  an  end  in  1984.  Furthermore,  according  to  Article  1  of  this  Regulation,  a 
Member  State  had  to  participate  in  the  Exchange  rate  mechanisms  of  the  European 
monetary  system  to  benefit  from  the  subsidies.  This  condition  suggests  also  that  the 
Regulation  is  no  longer  applicable.  Those  NIC  loans  granted  by  the  EIB  which 
benefited from this interest subsidy have in the meantime been repaid. Therefore, this 
Regulation is not relevant anymore. 

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2005/0233(CNS) 

Proposal for a 

COUNCIL REGULATION 

repealing Council Regulation (EEC) 3181/78 and Council Regulation (EEC) 1736/79  
in the area of Monetary Policy 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, and in particular Article 
308 thereof, 

Having regard to the proposal from the Commission1, 

Having regard to the opinion of the European Parliament2, 

Whereas: 

(1) 

(2) 

Council Regulation (EEC) 3181/783 of 18.12.1978 relating to the European monetary 
system gives the European Monetary Co-operation Fund (EMCF) the power to receive 
reserves from Member States and to issue ECUs. The tasks of EMCF were taken over 
by  EMI  and  subsequently  ECB  and  the  EMCF  was  dissolved.  Therefore,  this 
Regulation is not relevant anymore. 

Council Regulation (EEC) 1736/794 of 3.8.1979 on interest subsidies for certain loans 
granted under the European monetary system states that the Community should during 
a five-year period from its date of application, grant interest subsidies on certain types 
of loans (EIB loans to finance investments in less prosperous Member States, inter alia 
in infrastructure). This time period of five years, which was not extended, has come to 
an  end  in  1984.  Furthermore,  according  to  Article  1  of  this  Regulation,  a  Member 
State  had  to  participate  in  the  Exchange  rate  mechanisms  of  the  European  monetary 
system to benefit from the subsidies. This condition suggests also that the Regulation 
is no longer applicable. Those NIC loans granted by the EIB which benefited from this 
interest  subsidy  have  in  the  meantime  been  repaid.  Therefore,  this  Regulation  is  not 
relevant anymore, 

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2 
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4 

OJ C […], […], p. […]. 
OJ C […], […], p. […]. 
OJ L 379, 30.12.1978, p. 2. 
OJ L 200, 8.8.1979, p. 1. 

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HAS ADOPTED THIS REGULATION: 

Sole Article 

Council Regulation (EEC) 3181/78 and Council Regulation (EEC) 1736/79 are repealed. 

This  Regulation  shall  enter  into  force  on  the  20th  day  following  that  of  its  publication  in 
the Official Journal of the European Union. 

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels, 

For the Council 
The President 

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