Proposal for a COUNCIL REGULATION amending Regulation (EC) No 2866/98 as regards the conversion rate to the euro for Lithuania
Date: 2014-07-01
Institutions: European Commission
Subjects: Lithuania, conversion rate, euro, national currency













EUR-Lex - 52014PC0447 - EN











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52014PC0447

Proposal for a COUNCIL REGULATION amending Regulation (EC) No 2866/98 as regards the conversion rate to the euro for Lithuania /* COM/2014/0447 final - 2014/208 (NLE) */









EXPLANATORY MEMORANDUM
1.           Context of the proposal
On 4 June 2014, the Commission adopted a
proposal for a Council Decision in accordance with Article 140(2) of the Treaty
on the Functioning of the European Union (hereinafter the Treaty), proposing
that Lithuania fulfils the necessary conditions for the adoption of the euro
and that the derogation of Lithuania is abrogated with effect from
1 January 2015.
In case of a positive decision, the Council
will subsequently have to adopt the conversion rate between the euro and the Lithuanian
litas which will take effect from 1 January 2015.
Council Regulation
(EC) No 2866/98 on the conversion rates between the euro and the currencies of
the Member States adopting the euro[1]
sets the irrevocable conversion rates for the 18 Member States currently
participating in the euro (Belgium, Germany, Estonia, Greece, Spain, France, Ireland,
Italy, Cyprus, Latvia, Luxembourg, Malta, the Netherlands, Austria, Portugal,
Slovenia, Slovakia and Finland). In order to extend the scope of this
Regulation to the Lithuanian litas, a reference to this currency needs to be
added to this Regulation. This is the object of this proposal.
2.           Results of Consultations
with the interested parties and impact assessement
The formal procedure following the Commission
proposal for a Council Regulation involves consultation of the ECB. Discussions
with Member States on economic policy challenges in Member States are held
under various headings on a regular basis in the Economic and Financial
Committee, ECOFIN and Eurogroup. These include informal discussions on issues
specifically relevant to the preparation of eventual euro area entry (incl.
exchange rate policies). Dialogue with academics and other interested groups
takes place in the context of conferences/seminars and on an ad-hoc basis.
Economic developments in the euro area and the
Member States are assessed in the framework of the various procedures of
economic policy co-ordination and surveillance (notably under Article 121 of
the Treaty), as well as in the context of the Commission’s regular monitoring
and analysis of country-specific and area-wide developments (incl. forecasts,
regular publication series, input to EFC,  ECOFIN and Eurogroup). In accordance
with the proportionality principle and in line with past practice, no formal
impact assessment is considered necessary.
3.           Legal elements of the
proposal
3.1.        Legal basis
Legal basis for the present proposal is Article
140(3) of the Treaty, according to which the Council shall adopt the conversion
rate at which the euro shall be substituted for the currency of the Member
State the derogation of which has been abrogated under Article 140(2) of the
Treaty.
The Council shall act with the unanimity of the
Member States whose currency is the euro and the Member State concerned on a
proposal from the Commission and after consulting the ECB.
3.2.        Subsidiarity and
proportionality
The proposal falls under the exclusive
competence of the Union. The subsidiarity principle therefore does not apply.
The present initiative does not go beyond what
is necessary to achieve its objective and, therefore, complies with the
proportionality principle.
3.3.        Choice of the legal
instrument
The Regulation instrument is the only
appropriate legal instrument to amend Council Regulation (EC) No 2866/98 on the
conversion rates between the euro and the currencies of the Member States
adopting the euro.
4.           Budgetary implications
The proposal has no implications for the budget
of the Union.
5.           Commentary on individual
articles
5.1.        Article 1
The proposed rate is the present central rate
of the Lithuanian litas in the exchange rate mechanism (ERM II). 
As for the other currencies and in accordance
with Council Regulation (EC) No 1103/97[2]
on certain provisions relating to the introduction of the euro, the rate is
determined with six significant figures.
5.2.        Article 2
This Article sets the date of entry into force
of the Regulation at 1 January 2015, ensuring that it will be applicable
in conformity with the timing of the other Council acts relating to the
adoption of the euro by Lithuania, i.e. the date of the abrogation of the
derogation and the date of entry into force of the other measures necessary for
the introduction of the euro in Lithuania.
2014/208 (NLE)
Proposal for a
COUNCIL REGULATION
amending Regulation (EC) No 2866/98 as
regards the conversion rate to the euro for Lithuania
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the
Functioning of the European Union, and in particular Article 140(3) thereof,
Having regard to the proposal from the European
Commission[3],
Having regard to the opinion of the
European Central Bank[4],
Whereas:
(1)       Council Regulation (EC) No
2866/98[5]
determines the conversion rates to the euro as from 1 January 1999.
(2)       According to Article 4 of
the 2003 Act of Accession, Lithuania is a Member State with a derogation as
defined in Article 139(1) of the Treaty. 
(3)       Pursuant to Council
Decision 2014/.../EU of …[6],
Lithuania fulfils the necessary conditions for the adoption of the euro and the
derogation of Lithuania is abrogated with effect from 1 January 2015.
 (4)      The introduction of the
euro in Lithuania requires the adoption of the conversion rate between the euro
and the Lithuanian litas. This conversion rate should
be set at 3.45280 litas per 1 euro, which corresponds to the current central
rate of the litas in the exchange rate mechanism (ERM II). 
(5)       Regulation (EC) No 2866/98
should therefore be amended accordingly,
HAS ADOPTED THIS REGULATION:
Article 1
In Article 1 of Regulation (EC) No 2866/98,
the following line is inserted between the conversion rates applicable to the Latvian
lats and the Luxembourg francs:
“= 3.45280
Lithuanian litas”.
Article 2
This Regulation shall enter into force on 1
January 2015.
This Regulation shall be binding
in its entirety and directly applicable in all Member States.
Done at Strasbourg,
                                                                       For
the Council
                                                                       The
President
[1]               OJ L 359, 31.12.1998, p. 1. 
[2]               OJ L 162, 19.6.1997, p. 1.
[3]               OJ C ,…, p.
[4]               OJ C ,…, p.
[5]               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 (OJ L 359, 31.12.1998, p. 1).
[6]               Council Decision 2014/.../EU of … on the adoption by
Lithuania of the euro on 1 January 2015 […]