CELEX: 51989PC0467
Language: en
Date: 1989-10-13 00:00:00
Title: RECOMMENDATION FOR A COUNCIL DECISION AMENDING DECISION 64/300/EEC ON CO-OPERATION BETWEEN THE CENTRAL BANKS OF THE MEMBER STATES OF THE EUROPEAN ECONOMIC COMMUNITY

COMMISSION OF THE EUROPEAN COMMUNITIES
                                                 C0M(89) 467 f i n a l
                                                 Brussels, 13 October 1989
                              Recommendation  for a
                              COUNCIL DECISION
 amending Decision 64/300/EEC on co-operation between the Central Banks
         of the Member States of the European Economic Community
                       (presented by the Commission)
 ---pagebreak---                            Recommendation for a
                                COUNCIL DECISION
                        amending Decision 64/300/EEC
      on oo-operatlon between the Central Banks of the Member States
                    of the European Economic Ccnrnunlty
     THE OOUNCIL OF THE EUROPEAN OCMMUNITIES,
     Having regard to the Treaty establishing the European Economic
Cannunlty, and In particular to Article 105(1) and to the first Indent
of Article 145 thereof,
     Having regard to the Reccmnendatlon from the Commission dated
1989,
     Having regard to the Opinion of the European Pari lament,
     Having regard to the Opinion of the Economic and Social Ccrrmlttee,
     Whereas the European Counc il, at I ts meet I ng in Madr i d on 26  and
27   June   1989, decided that the first stage of the Implementation of
Economic and Monetary Union is to begin on 1 July      1990;
     Whereas Article   102a   of the Treaty as well as the Implementation
of the first stage of the Economic and Monetary Union calls for an
 Increased degree of convergence In economic performance towards non-
 Inflationary growth and of economic and social cohesion between the
Member States;
     Whereas greater convergence should be promoted with a view to
achieving   domestic price stability, which      Is at   the same time a
necessary condition for stable exchange rates, In accordance with the
requirements of the European Monetary System;
 ---pagebreak---                                      - 2 -
    Whereas the     Implementation of the first stage of Economic and
Monetary Union will     focus on completing the Internal market and in
particular    removing   all   obstacles   to   financial    integration,  on
strengthening the process of co-ordination of monetary policies, on
Intensifying    co-operation   between   Central  Banks   on   other  matters
falling within their competence and, In this connection, should give
consideration to extending the scope of the Central Banks' autonomy;
    Whereas arrangements for the formulation of monetary policy in an
Economic and Monetary Union should provide for adequate autonomy for
the  Institutions and     for canrmitment to price stability, which        is
essential to the success of that Union;
    Whereas, In view of the objective of Economic and Monetary Union,
the tasks and role of the Ccmnlttee of Governors of the Central Banks
of the Members States of the European Catmunity should be extended and
reinforced,
    HAS DECIDED AS FOLLOWS:
                                   Sole Article
                         i
    Decision 64/300/EEC     is hereby amended as follows:
    1.  Article 2 is replaced by the following:
                                  "Article 2
        The    Ccnmittee shai » be composed of        the Governors of    the
        Central Banks of the Member States and the Director General of
        the Luxembourg     Monetary    Institute.   If they   are  unable  to
        attend,    they may    nominate another    representative of    their
         institution.
        The Comilssion shall, as a general rule, be Invited to send one
        of   Its members as a representative to the meetings of the
        Connittee.
 OJ No 77, 21.5.1964, p. 1206/64.
 ---pagebreak---                               - 3 -
   The Comiittee may, furthermore, If It considers it necessary,
    invite qualified    persons  to attend     and   in particular   the
   Chairman of the Monetary Committee. "
2. The following Article 2a is inserted:
                                  "Article 2a
   The   Chairman of the Ccnmlttee shall be Invited to participate
   In the meetings of the Counci I of Ministers."
3. Article 3 is replaced by the following:
                                 "Article 3
   The   tasks of the Comnittee shall be:
   (1) to hold consultations concerning the general principles and
        the  broad   lines of   policy   of    the Central    Banks,  in
        particular as regards credit, money and foreign exchange
       markets and    Including, within their competences,        issues
        affecting  the   stability   of   financial    institutions  and
       markets ;
   (2) to exchange information regularly about the most important
       measures that fall within the competence of the Central
        Banks, and to examine those measures.       The Comnittee shall
        normally be consulted In advance of national decisions on
        the course of monetary policy, such as the setting of
        annual domestic monetary and credit targets;
   (3) to promote the co-ordination of the monetary policies of
        the Member States with a view to the proper functioning of
        the European Monetary System and the realisation of          its
       objective of monetary stab11ity;
   (4) to   formulate   opinions   on   the   overall   orientation   of
       monetary   and  exchange   rate policy     as we I I as on     the
        respective measures Introduced in Individual Member States
       with the aim of ensuring convergent monetary policies in
        the Community directed towards price stab 11ity;
 ---pagebreak---                                - 4 -
   (5) to express opinions to         individual  governments   and the
        Council of Ministers on policies which might affect the
         Internal and external monetary situation in the Ccmnunlty
        and,    In particular,    the   functioning   of  the  European
        Monetary System.
    In carrying out     its tasks, the Comnlttee shal I keep under
   review the trend of the monetary situation both           Inside and
   outside the Ccmnunlty.
   The Cemnittee shall prepare an annual report on its activities
   and on the monetary and financial conditions In the Ccmnunity,
   which will be transmitted to the Council of Ministers, the
   European Par Ii ament, and the European Counc11.
   The Ccrrm I ttee may author I se I ts Cha I rman to make the outcome of
    its deliberations public."
4. The followinq Article 3a is inserted:
                                "Article 3a
    The members of the Cemnittee, who are the representatives of
   their institutions, shall act, with respect to their activities
   on the Cemnittee, according to their own responsibilities and
   having due regard to Ccmnunlty objectives".
 ---pagebreak---                             - 5 -
5. Article 5 is replaced by the following:
                           "Article 5
    The Cormittee shall adopt its own rules of procedure.   It may
   create  sub-ccmnittees and   provide  Its own  Secretariat  and
   research services."
                                  Done at
                                  For the CounciI
                                  The President
 ---pagebreak---                                                                    Annex
                                                            (For information only)
                    DRAFT CONSOLIDATED COUNCIL DECISION
                                of 8 May 1964
      on co-operation between the Central Banks of the Member States
                     of the European Economic Ccmnunlty
                               * (64/300/EEC)
               (as amended by Counci I Decision      of .... )
     THE COUNCIL OF THE EUROPEAN OCMVLNITI ES,
     Having  regard   to the Treaty establishing    the European    Economic
Ccmnunity, and in particular to Article 105(1) and to the first indent
of Article 145 thereof,
     Having regard to the Reccmnendatlon of the Cemnlssion dated
1989,
     Having regard to the Opinion of the European Pari lament,
     Having regard to the Opinion of the Economic and Social Cormittee,
     Whereas the European CouncII, at Its meetIng in Madrid on 26th and
27th June 1989, decided that the first stage of the implementation of
Economic and Monetary Union snail begin on 1st July 1990;
     Whereas Article 102(A) of the Treaty as well as the implementation
of the first stage of the Economic and Monetary Union calls for an
 increased degree of convergence     In economic performance towards non-
 Inflationary growth and of economic and social cohesion between the
Member States;
     Whereas  greater   convergence  should  be promoted with   a   view  to
achieving   domestic   price  stability,  which  is at  the   same   time a
necessary condition for stable exchange rates, in accordance with the
requirements of the European Monetary System;
 ---pagebreak---                                       -f-
     Whereas  the   implementation of    the   first  stage of     Economic   and
Monetary Union will      focus on completing     the  internal market     and  in
particular    removing    all  obstacles    to   financial     integration,    on
strengthening the process of co-ordination of monetary policies, on
 intensifying   co-operation    between  Central    Banks   on   other   matters
 falling within their competence and,      in this connection, should give
consideration to extending the scope of the Central Banks' autonomy,
     Whereas arrangements for the formulation of monetary policy In an
Economic and Monetary Union should provide for adequate autonomy for
the   institutions   and   for ccmnltment    to   price  stability,    which   is
essential to the success of that Union;
     Whereas, in view of the objective of Economic and Monetary Union,
the tasks and role of the Cormittee of Governors of the Central Banks
of the Members States of the European Cantiunity should be extended and
reinforced;
     HAS DECIDED AS FOLLOWS:
                                   Article 1
     For the purpose of promoting co-operation between the Central Banks
of the Member States, a Cormittee of the Governors of the Central Banks
of the Member States of the European Ccmnunlty (hereinafter called the
"CcrnnitteeM) is hereby set up.
                                   Article 2
     The Committee shall be composed of the Governors of the Central
Banks of the Member States and the Director General of the Luxembourg
Monetary   Institute.    If they are unable to attend, they may nominate
another representative of their Institution.
 ---pagebreak---                                       -a
                                         .y
     The Cormission shall, as a general rule, be Invited to send one of
 its members as a representative to the meetings of the Carmittee.
   The Committee may, furthermore, If It considers It necessary, invite
qualified persons to attend and           in particular   the Chairman of     the
Monetary Carmittee.
                                   Article 2a
     The Chairman of the Carmittee shall be invited to participate in
the meet Ings of the CouncII of M i nIsters.
                                    Article 3
     The tasks of the Committee shal I be:
     (1) to hold consultations concerning the general principles and the
         broad lines of policy of the Central Banks, in particular as
         regards   credit,    money    and    foreign   exchange    markets   and
          Including,   within   their   competences,     issues   affecting   the
         stability of financial institutions and markets;
     (2) to exchange     Information regularly about        the most    important
         measures that fa 11 within the competence of the Central Banks,
         and to examine those measures.        The Carmittee shal I normal I y be
         consulted    In advance of national decisions on the course of
         monetary    policy,   such   as    the  setting   of   annual   domestic
         monetary and credit targets;
     (3) to promote the co-ordination of the monetary policies of the
         Member States with a view to the proper             functioning of the
         European Monetary System and the realisation of its objective
         of monetary stab 111ty;
     (4) to formulate opinions on the overall orientation of monetary
         and exchange rate po I icy as we 11 as on the respective measures
         introduced in individual Member States with the aim of ensuring
         convergent monetary policies in the Corrmunity directed towards
         price stab 11f ty;
 ---pagebreak---                                -°t -
(5) to express opinions to Individual governments and the Counci I
     of Ministers on policies which might affect the internal and
     external   monetary   situation    In  the   Carmunity  and,   In
     particular, the functioning of the European Monetary System.
 In carrying out Its tasks, the Comnittee shall keep under review
the trend of the monetary situation both Inside and outside the
CcrnnunIty.
The Comnittee shall prepare an annual report on its activities and
on the monetary and financial conditions in the Carmunity, which
will   be transmitted   to the Council of Ministers, the European
Par I Iament and the European Counc11.
The Comnittee may authorise Its Chairman to make the outcome of its
del(Derations publIc.
                            Article 3a
The members of the Comnittee, who are the representatives of their
 institutions, shall act, with respect to their activities on the
Carmlttee, according to their own responsibilities and having due
regard to Carmunity objectives.
                             Article 4
The   Carmlttee   shall  meet   at  regular   intervals  and  whenever
circumstances so require.     The Comnission may, if it considers the
situation necessitates such a step, request an emergency meeting of
the Comnittee.
 ---pagebreak---                               -to-
                           Artlcle 5
The Ccmnlttee shall adopt    its own rules of procedure.     It may
create sub-ccmnittees and provide Its own Secretariat and research
services.
                                   Done at Brussels, 8 May 1964
                                   For the Counc11
                                   The President
                                   H. FAYAT
 ---pagebreak---  ---pagebreak---                                                                      ISSN 0254-1475
                                                               COM(89) 467 final
                                                      DOCUMENTS
EN                                                                              18
                                 Catalogue number : CB-CO-89-423-EN-C
                                                             ISBN 92-77-53165-7
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