CELEX: 51979PC0723
Language: en
Date: 1979-12-10
Title: Proposal for a COUNCIL REGULATION (EEC) amending for the third time the Financial Regulation of 21 December 1977 as regards the use of the ECU in the general budget of the European Communities#Proposal for a COUNCIL REGULATION (EEC, Euratom) on the replacement of the European unit of account by the ECU in Community legal instruments#Proposal for a COUNCIL DECISION amending Decision 75/250/EEC on the definition and conversion of the European unit of account used for expressing the amount of aid mentioned in Article 42 of the ACP-EEC Convention of Lomé#Draft Commission Decision amending Decision No 3289/75/ECSC on the definition and conversion of the unit of account to be used in decisions, recommendations, opinions and communications for the purposes of the Treaty establishing the European Coal and Steel Community (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (79) 723
Vol. 1979/0244
 ---pagebreak--- Disclaimer
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concernant l'ouverture au public des archives historiques de la Communauté économique
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p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
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In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
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Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                      COM(79)723 final.
                                                      Brussels . 10 December 1979
                           Proposal for a
                      COUNCIL REGULATION ( EEC )
amending for the third time the Financial Regulation of 21 December 1977
as regards the use of the ECU in the general budget of the European
                              Communities
                           Proposal for a
                COUNCIL REGULATION ( EEC , Euratom )
on the replacement of the European unit of account by the ECU in Community
                          legal instruments
                           Proposal for a ^-*               •
                                              Co       v• A
                          COUNCIL DECISION
amending Decision 75/ 250/ EECL H on the definition
                                                 t--"*   and conversion of the
European unit of account   used for expressing tthe .^ mounts of aid mentioned
                                                                    ...
                                          <-,>   -   ,, ■<>■/
         in Article 42 of   the ACP*EEC Convention of Lomé
                                            i le
                      Draft Commission Decision        .
amending Decision No 3289/ 75 / ECSC on the definition and conversion of the
unit of account to be used in decisions , recommendations , opinions and
communications for the purposes of the Treaty establishing the European
                      Coal and Steel Community
           ( submitted to the Council by the Commission )
COM(79)723 final.
 ---pagebreak---                             EXPLANATORY MEMORANDUM
X.     Introduction ;   New context calling for the s-tandardization of the
       units of account used in Community finances
 1.    At the European Council meeting in Bremen on 6 and 7 July 1978, "the Heads
of State and of Government of the Member States of the European Communities
decided to    give fresh impetus to the process of monetary integration by
 creating a    zone of monetary" stability in Europe . At its meeting in Brussels '
 on 4 and 5   December 1978 , the European Council adopted a Resolution establishing
 a European    Monetary System (EMS ) for which the unit of account is        ,
  the ECU , u unit with the same value as the EUA when the System was set up .
 Under Rcjulation (EEC ) No 3180/78 of 18 December 1978 ,
  the Council introduced the ECU for the purposes of European Monetary Cooperation
  Fund transactions with effect from 1 January 1979» The European Monetary System
  came into force on 13 March 1979* The ECU has also been introduced for the
  purposes of the common agricultural Policy, under Council Regulation No 652/79 of
  29 March 1979 .                                                  '< .     .   ..
  2.    Technically, the only difference between the EUA, which is used in all
  other , sectors of Community activity, and the EOT lies in the explicitly
  stipulated possibility of the relative weight of the currencies making up the
  ECU b€!ing changed , whereas no such possibility is mentioned in the definition
• of the EUA.                     _            .
  It would be detrimental to the smooth functioning of these activities to have
  to use two units of account which ,, although based on the same principles , would
  acquire different , values because one had been altered and the other haul not .
  Consequently, in order to avoid any risk of confusion, the Commission, which
 has always been striving towards the standardization of the units of account
 used " in the Community, proposes that the EUA be replaced by the ECU.
   OJ No 1 379 of 30 December 1978 , p. 1 .
 ---pagebreak---                                   »                                     <
                                    - 2 -   -
It would be advisable for the procedure concerning the proposed replacement
to be completed quickly, in order to take advantage of the faot that , since
the two units of account have the same value at present , the transition would
be carried out without technical difficulties .
Now that the new unit of account known as the ECU has been created , it is
increasingly important to standardize the units of account used in Community
finances .   They should be standardized before the respective values of these
units of account begin to diverge .
Using one cr.d the same unit of account for all the activities of the
                                          /
European Connaunities frould have obvious accounting, legal and political
advantages .   The Commission has therefore prepared a series of proposals
designed to bring in the ECU simultaneously ( on 1 January 1980 ) for the
purposes of the General Budget of the European Communities , the ECSC Operational
Budget , European Development Fund transact ions and all acts of Community law
in which reference is made to a unit of account .
II .    The decisions to be taken
 The reasons for the   abovementioned proposals attached to this Memorandum are as
follows :                             ,
1.    Decisions to be taken by the Council
 (a ) Proposal for a Regulation amending the Financial Regulation of 21 December 1977
      as regards using the ECU in the General Budget of the European Communities
It is proposed that Article 10 of the Financial Regulation be amended.      For the
definition of the ECU the proposal refers to Council Regulation (EEC ) No 3180/78
of 18 December 1978 changing the value of the unit of account used by the '       . _ .
European Monetary Cooperation Fund.     The composition of the ECU basket , which
is now the same as that of the EUA specified in the Financial Regulation in
force , will henceforth simply be given in a footnote and not in the body of the
Regulation , so as not to invalidate the text in the event of a revision of the
ECU.                                                         '
 ---pagebreak--- On the latter point , the proposal also specifies that any changer in the .
definition of the ECU shall "be, decided on "by the Council an the context of
the European Monetary System. The Financial Regulation would thus ensure ,             \
the continuity of the same unit of account despite any revisions that might '
be made . It is also proposed that "European unit of account " be replaced
by 'ECU" in all the relevant Articles of the Financial Regulation. , :
                                                      «  .
 (b ) Proposal for a Reflation (EEC. Euratom ) on the replacement of the
      European unit of account by the ECU in acts of Community law
This text proposes that "EUA" be replaced by- "ECU" in all acts of Community law
now in force in which reference is made to the EUA.          Consequently, the ECU -
would be used from 1 January 1 980 not only in the General -Budget of the
European Cor.aiunities but also in all legal acts .     The transition to the ECU
for rights and obligations of third parties expressed in EUA is dealt with
by a general provision stipulating that such rights and obligations shall
continue to be managed on the basis of the definition of the European unit
of account iri force before the entry into force of the Regulation. 1
                                                                 .                   ν
 (e ) Proposal for a Council Decision amending Decision 75 /250/ EEC of 21 April 1975
      on the; definition and conversion of the European unit of account used for
      exnr'jr^ing the amounts of aid mentioned in Article 42 of theACP–EEC
      Convention of Lome
It is proposed that Article/ 1 of the   abovementioned Decision be amended in :
similar fashion to Article 10 of the Financial Regulation.. This proposal
is in accordance with the statement concerning Article 95 of the new ACP-EEC
                                                    :      1
Association Convention at present under negotiation . .
'See Council Doc. 8441/79 (ACP 253) (FIN 465 ) of 14 August 1979, Annex XXIV.
 ---pagebreak---                                      - 4 -
2.    Decision to "be taken "by the Commission subject to •unanimous Council assent
(d.) Conminsion Docision amending Decision No 3289/75/ECSC of 18 December 1975
       on the definition and conversion of the unit of account to be used in
       decisions , recommendations , opinions and communications for the purposes
        of the ECSC Treaty
As the final step in the efforts to standardize the units of account , the
Commission itself is required to take a decision in order to introduce the
ECU for the purposes of the ECSC Treaty. The proposal is aligned on the
proposals concerning the General Budget and the EDFf for the definition of
the ECU.      This proposal also contains a provision guaranteeing the
maintenance , after the transition to the ECU , of rights acquired in EUA ,
                                                   »
with the exception , however , of those arising from adjustment operations .
III .     Reminder of the proposal for a Regulation on the procedure for applying
          the EUA
The attached proposals relate to the introduction of the new single unit of
                                                                     *
account , the ECU, into Community finances , but do not provide for all the
      *
implementing arrangements . It should be recalled in this context that the
                                                 4
Commission proposal for a Regulation on the procedure for applying the
European unit of account (EUA) -fro legal acts adopted by the institutions
of the European Communities is still being discussed by the Community authorities .
It is therefore worthwhile for the Commission to specify that the new proposals
concerning the ECU axe not intended to replace this Commission proposal , which
it thinks should still be adopted ; the references to the EUA in the proposal
would be replaced by references to the ECU.
 ---pagebreak---                                                             ANNEX I
                     Proposal for a Council Regulation
               amending for the third time the Financial Regulation
          of 21 December 1977 as regards the use of the ECU in the
                     general budget of the European Communities
THE COUNCIL OP THE EUROPEAN COMMUNITIES ,                                  ,
Having regard to the Treaty establishing the European Coal and Steel
Corununity , and in particular Article J8h thereof ,
having regard to the Treaty establishing the European Economic Community
and in particular Article 209 thereof ,
Having regard to the Treaty establishing the European Atomic Energy
Community , and in particular Article 183 thereof ,
                                                    «
Having regard to the proposal from the Commission ,
Having regard to the opinion of the European Parliament ,
Having regard to the opinion of the Court of Auditors ,
 *                                                             <»
Whereas , pursuant to Article 10 of the Financial Regulation of
21 ; December 1977 applicable to the general budget of the European
             1     ,   .                                  2
Communities , as Last amended by Regulation              , , the budget is
drawn up in European units of account ( EUA ) . defined by reference to
the sum of specified amounts of the currencies of the Kenber Sta'er-;
Whereas Council Regulation ( EEC ) No 3180/ 78^ defined a new unit of
account known as the ECU ;
~0J No L 356 , 31.12.1977 , p . 1 .
3CJ No L 379, 30.12.1978, p . 1 .
 ---pagebreak---                                       , - 2 -
Whereas steps should be "taken to standardize the units of account used
by the Communities , and whereas the EUA should therefore be replaced
by the ECU ;      '
Whereas the composition of the ECU may be changed subsequently in the
context of the European Monetary System ,
HAS ADOPTED THIS REGULATION :        .   .
                                  Article 1
The Financial Regulation is hereby amended as follows :
Article 10 shall be replaced by the following :
                                  " Article 10
  1.      The Budget shall be drawn up xn ECU .
  The ECU shall be defined by reference to the sum of specified amounts
of the currencies of the Member States as set out in Council Regulation
( EEC ) No 3180/78 of 18 December 1978 changing the value of the unit of
                                                         1.2
account used by the European Monetary Cooperation Fund ' .
Any change in the definition of the ECU decided on by the Council in
the context of the European Monetary System shall automatically apply
to this provision .
gOJ No L 379 , 30.12.1978 , p. 1 .
   On the entry into force of this Regulation , such amounts are as follows
  m                                     0.828
  £ sterling                            0.0885
  FF                                    1.15
  Lit                                   109
  FI
  FI                                    0.286
   3frs
   3frs                                 3 > 66
  Lfrs                                  0.14
  ïkr
  ïkr                                   0.217
  .£.( Irish
       Tiri sh )^                       0.00759
 ---pagebreak---   2 . The value of the ECU in any given currency shall be equal to the
   sum of the equivalents In that currency of the amounts of the currencies
  making up the ECU .1- It shall be determined by the Commission on the
  basis of the rates recorded each day on the exchange markets .          -
   The dally rates for the purpose of conversion - into the various national
   currencies shall be available each day and shall be published in the
  Official - Journal of the European Communities .      -
   3.   Where appropriate , conversions between the ECU and national currencies
   shall be effected at the rate of the day, without prejudice to the special
   provisions Laid down in Article 108(7 )."              _
   In Articles 26, 30, 52(a ), 54, 56, 57, 63 , 94(4 ) and ( 5 ), and 108(7 )
                                                              - -       "     •
   " European units of account " shall be replaced by " ECU". '                 ,
■   •                              Article 2
  This Regulation shall enter into force on 1 January I98O. -
  This Regulation shall be binding in its entirety and directly
  applicable in all Member States .                   >     .
  Done at Brussels ,         -             1979
                                          For the Council
                                          The President
 ---pagebreak---                                                                          ANNEX II
           Proposal for a Council Regulation (EEC , Euratom)
          on the replacement of the European unit of account
             by the ECU in Community Legal instruments
THE COUNCIL OP THE EUROPEAN . COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
and in particular Article 235 thereof ,
Having regard to the Treaty establishing the European Atomic Energy Community
and in particular Article 203 thereof ,
Having regard to the proposal from the Commission,            '„ - .
                  *                                                  ' /
Having regard to the opinion of the European Parliament ,
                                               1
Uhoroas Council Regulation ( EEC ) No 3180/ 78   defined a new unit of account
known as the ECU ;
Whoroas steps should be taken to standardize the units of account used by:
the Communities , and whereas the EUA should therefore be replaced by the
ECU in all Community legal instruments ;
1 ur so L 379, 30.12.1978.' p.l .
 ---pagebreak--- Whereas a provision should be " included, in order to safeguard , when the
EUA is replaced by the ECU , rights and obligations contracted in
European units of account ,
HAS ADOPTED THIS REGULATION:
            i                    Article 1   . >
In all Community legal instruments applying at the time of entry into for
of this Regulation , " European unit of account " shall be replaced by " ECU"
                                                               ν
                       ,         Article 2                  ^
The definition of the European unit of account in force before the entry
 into force of this Regulation shall continue to apply to rights and .
obligations arising before the entry into force of t'his Regulation which
were determined in European units of account".      -
                                 Article 3
This Regulation shall enter into force on 1 January 1980 .
This Regulation shall be binding in its entirety and directly applicable
in' all Member States .
Done at Brussels ,                1979
                               >
                                                      For the Council
                                                                        I
                                                      The President
 ---pagebreak---                                                               ANNEX III
                   Proposal for a Council Decision                                   -
                    amending Decision 75 / 250/ EEC
on the definition and conversion of the European unit of account
used for expressing the amounts of aid mentioned in Article 42
                  of the ACP–EEC Convention of Lom6
THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
Having regard to the r 3 commendation of the Commission ,                   ,
Having regard to the report of the Monetary Committee ,
                                     - . -            1
Whereas , pursuant to Council Decision 75 / 250/ EEC , the unit of account to be . used
for expressing the amounts of aid mentioned in Article 42 of the
ACP–EEC Convention of Lome is defined by reference to the sum of
specified amounts of currencies of the Member States of the Community:
'.Jhereas Council Regulation ( EEC ) No 3180/ 78   defined a new unit of account
known as the ECU ;
Whereas steps should be taken to standardize the units of account used
by the Community , and whereas the EUA should therefore be replaced by the ECU ;
Whereas the composition of the ECU may be changed subsequently in the
context of the European Monetary System.
1OJ No L 104, 28.4.1975, P.35.
2OJ No L 379, 30.12.1978. p.1 .
 ---pagebreak--- RAS ADOPTED THIS DECISION :
                                   Sole Article
Decision 75 / 250/ EEC is hereby amended as follows :
      «
Article 1 shall be replaced by the following :.
                                     Article 1                            «
"The amounts of aid mentioned, in Article 42 of the ACP–EEC Convention
of Lom£ shall be expressed in ECU . The ECU shall fee defined 'by-
reference to the sum of specified amounts of the currencies of the
Member States as set out in Council Regulation (EEC)' No 3180/78 of
18 Decefiiber 1978 changing the value of the unit of account used "by
                                               1.2
the European Monetary Cooperation Fund ' • ,
Any change in the definition of the ECU decided on by the Council in
the context , of the European Monetary System shall automatically apply
to this provision ."                                                    •
In the first paragraph of Article 2 , " unit of account " shall be
replaced "by "ECU".       - '                             ' ■ '
Done at Brussels ,                           '1979
                      . . . 'V ' ■               For ihe Council
                        ,             -          The President
 OJ No L 379 » 30.12.1978 , £.1 .
 On the entry into force of this Decision , such amounts are as follows
             DM -                        0.828 .
             £ sterling . - .    .       0.0885
             FF                          1.15
             Lit ,                    109"
  ' 3        F1                          0.286
            Bfrs                         3.66                   •
            Lfrs                         0.14
            Dkr .              .         0.217               '
            £( Irish )             - . . 0.00759        V"        - ■ -
 ---pagebreak---                                                          ANNEX IV
                        Commission Décision
                 amending Decision No 3289/ 75/ ECSC
on the definition and. conversion of the unit of account to "be used,
in decisions , recommendations , opinions and communications for the
purposes of the Treaty establishing the European Coal and Steel
                           Community      .
THE COMMISSION OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Coal and
Steel Community , and in particular Articles 8 , 14, 26 , 50, 54, 55
 and Article 56 thereof.
                                                                         1
'Jhereas , pursuant to Article 1 of Commission Decision No 3289/ 75/ ECSC , the ,
unit of account to "be used for the purposes of the ECSC Treaty
is the European unit of account (EUA) defined "by reference to
the sum of specified amounts of the currencies of the Member States :
                                               2
Whereas Council Regulation ( EEC ) No 3180/ 78   defined a new unit of
account known as the ECU ;
Whereas steps should be taken to standardize the units of account
used by the Community , and whereas the EUA should therefore be replaced
by the ECU ;
Whereas the composition of the ECU may be changed subsequently in
the context of the European Monetary System :
10J No L 327 , 19.12.1975 , P-4
20J No L 379 , 30.12.1978 , p.1
 ---pagebreak---   With the unanimous assent of the Council ,                  ;
                  %       •            •        -     '
  HAS ADOPTED THIS DECISION: '
                                    Article 1
  Decision No 3289/ 75 / ECSC is hereby amended as follows :
  1.     Article 1 shall read as follows :        ;                  -
                                     Article 1
   "The unit of account to he used in decisions , recommendations , opinions
  and communications for the purposes of the Treaty establishing the European '
  Coal and Steel Community shall he the ECU, which shall "be defined by reference
  to the sum of the following amounts of the currencies of the Member States
  of the Community :                                      '                 ' ^         J ■ ■
                            DM             ~ 0.828
                            £ sterling       0.0885
                            FF            . 1.15                                  •
                            Lit           109
                            Fl             * 0.286          '
                            Bfrs             3.66
                            Lfrs             O.I4
                            Dkr              0.217
                            £ Irish          0.00759                 -                  \
  Any change in the definition of the ECU decided on by the Council in the
  context of the European Monetary Slystem shall automatically apply to this
  provision ."                                                         -                   '
   2*    In Article .2 "unit of account " shall be replaced by "ECU"#             In the first
  paragraph of Article 3 » the first and second paragraphs of Article 4 and the
  last paragraph of Article 7            shall be replaoed by " ECU".
  3 ..   The following paragraph shall be added to Article 5 :
. The definition of the European unit of account EUA in force before the entry
..i - to force of this Decision shall continue to apply to rights and obligations
  arising between 1 January 1976 and 31 December 1979 which were determined in
. European units of account ,- with the exception of those arising from adjustment
  °perati °nS -               " /' Article 2
  This Decision shall enter info force on 1 January 1980.                r-     '
  Tnio Decision shall be binding in its entirety and directly applicable in all
        jr States .                          --         >                     v
  Dc..o at Brussels ,              1979             ,
                                                                Por the Commission •