CELEX: 51987PC0550(02)
Language: en
Date: 1987-11-04
Title: PROPOSAL FOR A DIRECTIVE AMENDING DIRECTIVE 72/156/EEC ON REGULATING INTERNATIONAL CAPITAL FLOWS AND NEUTRALIZING THEIR UNDESIRABLE EFFECTS ON DOMESTIC LIQUIDITY

No C 26/12                                 Official Journal of the European Communities                                     1. 2. 88
                  Proposal for a Council Directive amending Directive 72/156/EEC on regulating international
                           capital flows and neutralizing their undesirable effects on domestic liquidity
                                                         COM(87) 550 final
                                (Submitted by the Commission to the Council on 4 November            1987)
                                                            (88/C 26/02)
THE COUNCIL OF THE EUROPEAN COMMUNITIES,                              HAS ADOPTED THIS DIRECTIVE:
Having regard to the Treaty establishing the European                                              Article 1
Community, and in particular Article 70 paragraph 1
thereof,                                                              The exacting terms of Directive 72/156/EEC shall be
                                                                      replaced by the following:
Having regard to the proposal from the Commission,
                                                                         'Article 1
which consulted the Monetary Committee for this purpose,
                                                                         1. In the arrangements which they apply to the
                                                                         conclusion or performance of transactions and to
Having regard to the opinion of the European Parliament,
                                                                         transfers in respect of capital movements with third
                                                                         countries, the Member States shall endeavour to attain
                                                                         the same degree of liberalization as in the case of
Whereas by Directive .../.../EEC, for the implementation of
                                                                         operations taking place with residents of the other
Article 67 of the Treaty, the Council established the free
                                                                         Member States of the Community.
movement of capital between the residents of the Member
States;
                                                                         2. The Member States shall inform the Commission of
                                                                         the restrictions which they impose on movements of
Whereas the Member States shall endeavour to attain the                  capital to or from third countries at the date of entry
highest possible degree of liberalization in respect of                  into force of this Directive, and of any subsequent
movement of capital between the residents of the                         change to these provisions.
Community and those of third countries;
                                                                         3. The Commission may make recommendations to
                                                                         Member States on this subject.
Whereas by Directive 72/156/EEC (l) the Council es-
tablished a set of instruments for regulating international              Article 2
capital flows and neutralizing their undesirable effects on
domestic liquidity; whereas in view of the fact that the free            The Member States shall take all necessary measures to
movement of capital within the Community has been                        ensure that the monetary authorities have available the
established, these instruments may be put into operation in              following instruments and are able, where necessary, to
order to regulate short-term capital movements between                   put them into operation immediately without further
residents of the Member States of the Community only on                  enabling measures:
the conditions and according to the safeguard procedures
laid down in the Treaty and in Directive .../.../EEC;                    (a) for effective regulation of international capital
whereas Directive 72/156/EEC must be amended accord-                         flows:
ingly ;
                                                                             — rules governing the constitution of short-term
                                                                                 assets or liabilities placed with non-residents and
                                                                                 payment of interest on the short-term holdings of
Whereas it must be possible for these instruments to be used
                                                                                 non-residents,
on a recommendation from the Commission, in order to
ensure coordinated action by the Member States, in the
event of short-term capital flows to or from third countries                 — regulation of short-term financial loans and
leading to serious disturbances in their domestic monetary                       credits granted to or contracted with non-
situation and in the stability of exchange rate relationships                    residents ;
in the European Monetary System;
                                                                         (b) for the neutralization of those effects produced by
                                                                             international capital flows on domestic liquidity
                                                                             which are considered undesirable:
Whereas, for the sake of clarity, it is advisable to present in
a single text all the exacting terms of Directive 72/156/
                                                                             — regulation of the net external position of credit
EEC, as amended by this Directive,
                                                                                 institutions,
                                                                             — fixing minimum reserve ratios, in particular for
(i) O J N o L 9 1 , 18.4. 1972, p. 13.                                           the holdings of non-residents.
 ---pagebreak--- 1. 2. 88                                 Official Journal of the European Communities                                No C 26/13
    Article 3                                                           operation, in the event of short-term capital flows to or
                                                                        from third countries leading to serious disturbances in
    1. The Member States shall forthwith adopt the                      the domestic monetary situation and in the stability of
    necessary measures to comply with this Directive. They              exchange rate relationships in the European Monetary
    shall forthwith inform the Commission thereof.                      System.
    2. Each Member State shall, where necessary, and                    3. When the instruments mentioned in Article 2 are
    taking account of the interests of the other Member                 applied, the Commission shall ensure close coordi-
    States, apply all or some of the instruments mentioned              nation between the authorities of the Member States.
    in Article 2.
                                                                        Article 4
    When these instruments apply to movements of capital
                                                                        In exercising the powers which are conferred upon it by
    occuring between residents of the Member States of the
                                                                        this Directive, the Commission shall act in consultation
    Community, they may be put into operation only on the
                                                                        with the Monetary Committee and the Committee of
    conditions and according to the procedures laid down in
                                                                        Governors of Central Banks.
    the provisions of the Treaty relating to the use of a
    safeguard clause or in the provisions of Article 2 and 3 of         Article 5
    Directive .../.../EEC for the implementation of Article
    67 of the Treaty.                                                   This Directive is addressed to the Member States.'
    Without prejudice to these provisions, the Commission                                     Article 2
    may recommend to the Member States that all or some
    of the instruments mentioned in Article 2 be put into           This Directive is addressed to the Member States.
               Proposal for a Council Regulation (EEC) establishing a single facility providing medium-term
                                  financial support for Member States' balances of payments
                                                        COM(87) 550 final
                             (Submitted by the Commission to the Council on 4 November          1987)
                                                           (88/C 26/03)
THE COUNCIL OF THE EUROPEAN COMMUNITIES,                            encourage that Member State to adopt, in good time,
                                                                    measures likely to prevent the occurence of an acute
Having regard to the Treaty establishing the European
                                                                    balance-of-payments crisis;
Economic Community, and in particular Articles 108 and
235 thereof,
                                                                    Whereas a financing facility, in the form of a credit line or a
Having regard to the proposal from the Commission,                  loan commitment to a Member State undertaking to
which consulted the Monetary Committee for this purpose,            implement a capital liberalization programme despite a
Having regard to the opinion of the European Parliament,            fragile balance-of-payments situation, should provide
                                                                    back-up for such a programme in orderly exchange-rate
Whereas Article 108 of the Treaty provides for the granting         conditions;
of mutual assistance, to be decided by the Council on a
proposal from the Commission, to a Member State in                  Whereas each loan to a Member State must be linked to the
difficulties or seriously threatened with difficulties as           adoption by that Member State of economic policy
regards its balance of payments; whereas the resolution of          measures designed to re-establish or to ensure a sustainable
the European Council of 5 December 1978 on the                      balance-of-payments situation and adapted to the gravity
establishment of the European Monetary System (EMS)                 of the balance-of-payments situation in that State and to
and related matters confirmed the need for a Community              the way in which it develops;
facility for medium-term financial assistance of balances of
payments;                                                           Whereas appropriate procedures and instruments should
Whereas it should be possible for the operation of lending          be provided for in advance to enable the Community and
to a Member State to take place soon enough in order to             Member States to ensure that, if required, medium-term