Proposal for a Council Regulation amending Regulation (EC) No 974/98 as regards the introduction of the euro in Slovakia )
Date: 2008-05-07
Institutions: European Commission
Subjects: Economic and Monetary Union, European Monetary System, Slovakia, euro

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 7.5.2008 
COM(2008) 250 final 

2008/0096 (CNB) 

Proposal for a 

COUNCIL REGULATION 

amending Regulation (EC) No 974/98 as regards the introduction of the euro in Slovakia 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

On  7  May  2008,  the  Commission  adopted  a  proposal  for  a  Council  Decision  in 
accordance  with  Article  122(2)  EC,  indicating  that  Slovakia  fulfils  the  necessary 
conditions for the adoption of the single currency and that the derogation of Slovakia 
is abrogated with effect from 1 January 2009. 

In case  of  a positive decision, the Council will subsequently have to take  the other 
measures necessary for the introduction of the euro in Slovakia. 
Council  Regulation  (EC)  No  974/98  on  the  introduction  of  the  euro1  governs  the 
initial  introduction  of  the  euro  in  the  first  wave  euro-area  Member  States  and 
Greece2. This Regulation was amended by : 

- Regulation (EC) No 2169/2005, in order to prepare for future enlargements of the 
euro area ; 

- Regulation (EC) No 1647/2006, in order to cover Slovenia (which adopted the euro 
on 1 January 2007) 

- Regulation (EC) No 835/2007, in order to cover Cyprus (which adopted the euro on 
1 January 2008)  

- Regulation (EC) No 836/2007, in order to cover Malta (which adopted the euro on 
1 January 2008)  

In order for Slovakia to also be covered by Regulation (EC) No 974/98, a reference 
to  this  Member  State  needs  to  be  added  to  this  Regulation.  The  present  proposal 
contains the necessary amendments to this Regulation. 

Slovakia's changeover plan specifies that the so-called “big bang” scenario should be 
applicable,  i.e.  that  the  adoption  of  the  euro  as  the  currency  of  Slovakia  and  the 
introduction of euro banknotes and coins in this Member State should coincide. 

2. 

LEGAL ASPECTS 

2.1. 

Legal basis 

The  legal  basis  for  the  present  proposal  is  Article  123(5)  EC,  which  allows  for  the 
adoption  of  the  other  measures  necessary  for  the  introduction  of  the  euro  in  the 
Member State the derogation of which has been abrogated under Article 122(2) EC. 

The Council shall act with the unanimity of the Member States without a derogation 
and  the  Member  State  concerned  on  a  proposal  from  the  Commission  and  after 
consulting the ECB. 

2.2. 

Subsidiarity and proportionality 

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

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2 

OJ L 139, 11.5.1998, p. 1. Regulation as last amended by Council Regulation (EC) No 1647/2006 of 
7 November 2006 (OJ L 309, 9.11.2006, p. 2). 
Cf. Council Regulation (EC) No 2596/2000 of 27 November 2000 amending Council Regulation (EC) 
No 974/98 on the introduction of the euro (OJ L 300, 29.11.2000, p. 2). 

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The present initiative does not go beyond what is necessary to achieve its objective 
and, therefore, complies with the proportionality principle. 

2.3. 

Choice of the legal instrument 

The Regulation instrument is the only appropriate legal instrument to amend Council 
Regulation (EC) No 974/98 on the introduction of the euro. 

3. 

4. 

BUDGETARY IMPLICATIONS 

The proposal has no implications for the Community budget. 

COMMENTARY ON INDIVIDUAL ARTICLES 

4.1. 

Article 1 

In  accordance  with  Article  1  lit.  (a)  and  with  Article  1a  of  Regulation  (EC)  No 
974/98,  the  table  in  the  Annex  to  that  Regulation  lists  the  participating  Member 
States  and  defines  the  euro  adoption  date,  the  cash  changeover  date,  and  the 
“phasing-out” period, if applicable, for all these Member States. According to Article 
1  lit.  (i)  of  Regulation  (EC)  No  974/98,  a  "phasing-out"  period  can  only  apply  to 
Member States where the euro adoption date and the cash changeover date fall on the 
same  day.  This  was  not  the  case  for  the  eleven  Member  States  which  adopted  the 
euro on 1 January 1999 and for Greece which adopted the euro on 1 January 2001. 
Slovenia, Cyprus and Malta euro adoption date and cash changeover date coincided 
(1  January  2007  for  Slovenia  and  1  January  2008  for  Cyprus  and  Malta),  but  the 
countries  have  chosen  not  to  have  a  "phasing-out"  period.  Also  Slovakia's 
changeover  plan  sets  the  same  date  for  the  euro  adoption  date  and  for  the  cash 
changeover  date  (1  January  2009),  while  the  country  has  chosen  not  to  have  a 
"phasing-out" period. 

This Article adds Slovakia and the following relevant data for this Member State to 
the table in the Annex to Regulation (EC) No 974/98 in protocol order. 

Member State 

Euro adoption date 

Cash changeover date 

Member State with a 
"phasing-out" period 

"Slovakia 

1 January 2009 

1 January 2009 

No" 

4.2. 

Article 2 

This  Article  sets  the  date  of  entry  into  force  of  the  Regulation  at  1 January  2009, 
ensuring that it will be applicable in conformity with the timing of the other Council 
acts relating to the adoption of the euro by Slovakia, i.e. the date of the abrogation of 
the  derogation  and  the  date  of  the  entry  into  force  of  the  conversion  rate  of  the 
Slovak koruna. 

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2008/0096 (CNB) 

Proposal for a 

COUNCIL REGULATION 

amending Regulation (EC) No 974/98 as regards the introduction of the euro in Slovakia 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, and in particular Article 
123(5) thereof, 
Having regard to the proposal from the Commission3, 
Having regard to the opinion of the European Central Bank4, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

(6) 

(7) 

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10 

Council Regulation (EC) No  974/98 of 3 May 1998 on the introduction  of the euro5 
provides for the substitution of the euro for the currencies of the Member States which 
fulfilled  the  necessary  conditions  for  the  adoption  of  the  single  currency  at  the  time 
when the Community entered the third stage of economic and monetary union. 
Council  Regulation  (EC)  No  2596/20006  amended  Regulation  (EC)  No  974/98  to 
provide for the substitution of the euro for the currency of Greece. 
Council  Regulation  (EC)  No  2169/20057  amended  Regulation  (EC)  No  974/98  in 
order to prepare for subsequent introductions of the euro in Member States which have 
not yet adopted the euro as the single currency. 
Council  Regulation  (EC)  No  1647/20068  amended  Regulation  (EC)  No  974/98  to 
provide for the substitution of the euro for the currency of Slovenia.  
Council  Regulation  (EC)  No  835/20079  amended  Regulation  (EC)  No  974/98  to 
provide for the substitution of the euro for the currency of Cyprus. 
Council  Regulation  (EC)  No  836/200710  amended  Regulation  (EC)  No  974/98  to 
provide for the substitution of the euro for the currency of Malta. 

According to Article 4 of the 2003 Act of Accession, Slovakia is a Member State with 
a derogation as defined in Article 122 of the Treaty. 

OJ C , , p. . 
OJ C , , p. . 
OJ L 139, 11.5.1998, p. 1. Regulation as last amended by Council Regulation (EC) No xxx/2007 (OJ L, 
, p.). 
OJ L 300, 29.11.2000, p. 2. 
OJ L 346, 29.12.2005, p. 1. 
OJ L 309, 9.11.2006, p. 2. 
OJ L , , p. . 
OJ L , , p. . 

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(8) 

(9) 

Pursuant  to  Council  Decision  2008/…/EC  of  …  …  2008  in  accordance  with  Article 
122(2) of the Treaty on the adoption by Slovakia of the single currency on 1 January 
200911,  Slovakia  fulfils  the  necessary  conditions  for  the  adoption  of  the  single 
currency and the derogation in favour of Slovakia is to be abrogated with effect from 
1 January 2009. 

The  introduction  of  the  euro  in  Slovakia  requires  the  extension  to  Slovakia  of  the 
existing  provisions  on  the  introduction  of  the  euro  set  out  in  Regulation  (EC)  No 
974/98. 

(10)  Slovakia's  changeover  plan  specifies  that  euro  banknotes  and  coins  should  become 
legal  tender  in  that  Member  State  on  the  day  of  the  introduction  of  the  euro  as  its 
currency. Consequently, the euro adoption date and the cash changeover date shall be 
1 January 2009. No “phasing-out” period should apply. 

(11)  Regulation (EC) No 974/98 should therefore be amended accordingly, 

HAS ADOPTED THIS REGULATION: 

The Annex to Regulation (EC) No 974/98 shall be amended in accordance with the Annex to 
this Regulation. 

Article 1 

This Regulation shall enter into force on 1 January 2009. 

Article 2 

This Regulation shall be binding in its entirety and directly applicable in the Member States in 
accordance with the Treaty establishing the European Community. 

Done at Brussels,  

For the Council 
The President 

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OJ L , , p. . 

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In the Annex to Regulation (EC) No 974/98, the following line is inserted between the entries 
for Slovenia and Finland.  

Annex 

Member State 

Euro adoption date 

Cash changeover date 

Member  State  with  a 
"phasing-out" period 

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 

"Slovakia 

1 January 2009 

1 January 2009 

No" 

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