CELEX: 51993PC0617(02)
Language: en
Date: 1993-11-22
Title: Amended proposal for a COUNCIL REGULATION (EC) specifying definitions for the application of the prohibitions of privileged access referred to in article 104a of the Treaty

f
                 , COMMISSION OF THE EUROPEAN COMMUNITIES
                                                                     COM(93) 617final- SYN 466 - 467
                                                                     Brussels, 22 November 1993
   1 * ,^/iff                   SECONDARY LEGISLATION FOR THE SECOND STAGE
  ™ I "i                                OF ECONOMIC AND MONETARY UNION
                                                    Amended proposal for a
                                               COUNCIL REGULATION (EC)                           SYN 466
                                specifying definitions for the application of the prohibitions
                                    referred to in articles 104 and 104B(1) of the Treaty
           '{•4jJ
                                                    Amended proposal for a
                                               COUNCIL REGULATION (EC)                           SYN 467
                              specifying definitions for the application of the prohibition of
  Wît-
                                  privileged access referred to in article 104a of the Treaty
                                                    Amended proposal for a
                                               COUNCIL REGULATION (EC)
                           on the application of the Protocol on the excessive deficit procedure
                               annexed to the Treaty establishing the European Community
                                                    Amended proposal for a
                                                    COUNCIL DECISION
 B     i l i mm
             ïl            on the statistical data to be usedforthe determination of the key for
 im
                                 the financial resources of the European Monetary Institute
                                                    Amended proposal for a
                                                    COUNCIL DECISION
                        on the consultation of the European Monetary Institute by the authorities
                                    of the Member States on draft legislative provisions
                     (presented by the Commission pursuant to Article 189 A (2) of the EC-Treaty)
Ést'ï
 ---pagebreak--- v.
                               Explanatory Memorandum,
   Following an invitation from the European Council held on 21 and 22 June 1993 at
   Copenhagen the Commission transmitted draft proposals for secondary legislation for
   the second stage of Economic and Monetary Union to the Council and the European
   Parliament in July and September (docs. COM(93)371 final - SYN 466 - SYN 467 of
   22.7.93 and COM(93)436 final of 22.9.93).
   These draft proposals were confirmed as formai proposals of the Commission with
   effect from 1 November 1993 by letters from Vice-President Christophersen to the
   President of the Council and the President of the European Parliament,
   The European Parliament has delivered its opinion on 16 November. Subsequently,
   the Commission has accepted a number of amendments proposed by the European
   Parliament which are incorporated in the present amended proposals.            The
   Commission has also taken account of work done in the Council.
                                     -p>-
 ---pagebreak---                                              Amended proposal for a
                                       COUNCIL REGULADQNIEC)                                          SYN466
                        specifying definitions for the application of the prohibitions
                            referred to in articles 104 and 104B(1) of the Treaty
 THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community, and in particular
 Article 104B(2) thereof,
Having regard to the proposal from the Commission (*),
In co-operation with the European Parliament (*),
Whereas Articles 104 and 104B(1) of the Treaty are directly applicable; whereas the terms
featuring in Articles 104 and 104B(1) may be specified, if necessary;
Whereas the terms "overdraft facilities" and "other types of credit facility" used in Article 104 of
the Treaty should be defined, particularly with reference to the treatment of claims existing at
 1 January 1994;
Whereas it is desirable that the national central banks participating in the third stage of Economic
and Monetary Union should enter such Union having on their balance sheets claims negotiable
under market conditions, in particular to give the required flexibility to the monetary policy of the
European System of Central Banks and to permit a standard contribution from the various national
central banks participating in monetary union to the monetary income to be distributed among
them;
Whereas the central banks which, after 1 January 1994, still hold claims against the public sector
which are non-negotiable or are subject to conditions which are not market conditions should be
authorized subsequently to convert such claims into negotiable fixed-maturity securities under
market conditions;
Whereas paragraph 11 of the Protocol on certain provisions relating to the United Kingdom of
Great Britain and Northern Ireland stipulates that the Government of the United Kingdom may
maintain its "ways and means" facility with the Bank of England if and so long as the
  * The initial draft proposal (COM(93)371 final - SYN466 - SYN 467 of 22.7.93 was confirmed as a forma! proposa! with
   . effect from 1.11.1993
 (t)     OJ C
(%) OJ C             and       Decision        of    (not yet published in t h e O f f i c i a l J o u r n a l ) .
 ---pagebreak--- United Kingdom does not move to the third stage; whereas it is appropriate to make provision for
the conversion of the amount of this facility into marketable debt at a fixed maturity and on market
terms if the United Kingdom moves to stage three of EMU;
Whereas the Protocol on Portugal lays down that "Portugal is hereby authorized to maintain the
facility afforded to the Autonomous Regions of the Azores and Madeira to benefit from an
interest-free credit facility with the Banco de Portugal under the terms established by existing
Portuguese law"; and that "Portugal commits itself to pursue its best endeavours in order to put an
end to the abovementioned facility as soon as possible";
Whereas Member States must take appropriate measures to ensure that the prohibitions referred to
in Article 104 of the Treaty are applied effectively and fully; whereas, in particular, purchases
made on the secondary market must not be used to circumvent the objective of that Article;
Whereas, within the limits laid down in this Regulation, the direct acquisition by the central bank
of one Member State of marketable debt instruments issued by the public sector of another
Member State does not help to shield the public sector from the discipline of market mechanisms
where such purchases are conducted for the sole purpose of managing foreign exchange reserves;
Whereas, notwithstanding the role assigned to the Commission under Article 169 of the Treaty, it
is for the European Monetary Institute and, thereafter, for the European Central Bank, pursuant to
Article 109F(9) and Article 180 of the Treaty, to ensure that national central banks honour the
obligations laid down by the Treaty;
Whereas intra-day credits by the central banks may assist the smooth operation of payment
systems and whereas, therefore, intra-day credits in the public sector are compatible with the
objectives of Article 104 of the Treaty, provided that no extension to the following day is possible;
Whereas the function of fiscal agent exercised by the central banks should not be impeded;
whereas, even if clearing by the central banks of cheques issued by third parties for the public
sector's account may occasionally involve a credit, Article 104 of the Treaty should not be
regarded as prohibiting such operations, provided that they do not result overall in a credit for the
public sector;
Whereas the holding by the central banks of coins issued by the public sector and credited to the
public sector constitutes an interest-free form of credit for the public sector; whereas, however, if
only limited amounts are involved, this practice does not interfere with the principle of Article 104
of the Treaty and whereas, therefore, in view of the difficulties which would arise from total
prohibition of this form of credit, if may be permitted within the limits laid down in this
 ---pagebreak---  Regulation;
 Whereas, following unification, the Federal Republic of Germany has particular difficulty in
 complying with the limit set on such assets; whereas it is appropriate in those circumstances to
 authorize a higher percentage for a limited period;
Whereas the financing by the central banks of obligations falling upon the public sector vis-à-vis
the International Monetary Fund or resulting from the implementation of the medium-term
financial assistance facility set up within the Community results in foreign claims which have all the
characteristics of reserve assets; whereas it is, therefore, appropriate to authorize them;
Whereas public undertakings are covered by the prohibition in Article 104 and Article 104B(1);
whereas they are defined in Commission Directive 80/723/EEC of 25 June 1980 on the
transparency of financial relations between Member States and public undertakings ( ),
 ( ) OJ L 195, 29.7.1980, p. 35.                   Directive as last amended by Commission
      Directive 93/84/EEC (OJ L 254, 12.10.1993, p. 16).
 ---pagebreak--- HAS ADOPTED THIS REGULATION:
                                                  Article 1
 1. For the purposes of Article 104 of the Treaty:
(a) "overdraft facilities" means any provision of funds to the public sector resulting or likely to
     result in a debit balance;
(b) "other type of credit facility" means
       (i)   any claim against the public sector existing at 1 January 1994, except for
             fixed-maturity claims acquired before that date,
      (ii)   any financing of the public sector's obligations vis-à-vis third parties,
     (iii)   without prejudice to Article 104(2) of the Treaty, any transaction with the public
             sector resulting or likely to result in a claim against that sector.
2. The following shall not be regarded as "debt instruments" within the meaning of Article 104 of
the Treaty: securities acquired from the public sector to ensure the conversion into negotiable
fixed-maturity securities under market conditions of:
- fixed-maturity claims acquired before 1 January 1994 which are not negotiable or not under
   market conditions, provided that the maturity of the securities is not subsequent to that of the
   aforementioned claims;
- the amount of the "ways and means" facility maintained by the United Kingdom Government
   with the Bank of England until the date, if any, on which the United Kingdom moves to Stage
   Three of EMU.
                                                  Article 2
1. During Stage Two of EMU, purchases by the national central bank of one Member State of
marketable debt instruments issued by the public sector of another Member State shall not be
considered direct purchases within the meaning of Article 104 of the Treaty, provided that such
purchases are conducted for the sole purpose of managing foreign exchange reserves.
2. During Stage Three of EMU, the following purchases conducted for the sole purpose of
managing foreign exchange reserves shall not be considered direct purchases within the meaning of
Article 104 of the Treaty:
 ---pagebreak---  - purchases by the national central bank of a Member State not participating in Stage Three of
   EMU, from the public sector of another Member State, of marketable debt instruments of the
   latter;
 - purchases by the European Central Bank or the national central bank of a Member State
   participating in Stage Three of EMU, from the public sector of a Member State not participating
   in Stage Three, of marketable debt instruments of the latter.
                                               Article 3
For the purposes of this Regulation, "public sector" means Community institutions or bodies,
central governments, regional, local or other public authorities, other bodies governed by public
law or public undertakings of Member States.
 "National central banks" means the central banks of the Member States and the Luxembourg
Monetary Institute.
                                               Article 4
Intra-day credits by the ECB or the national central banks to the public sector shall not be
considered as a credit facility within the meaning of Article 104 of the Treaty, provided that they
remain limited to the day and that no extension is possible.
                                               Article 5
Where the European Central Bank or the national central banks receive from the public sector, for
collection, cheques issued by third parties and credit the public sector's account before the drawee
bank has been debited, this operation shall not be considered as a credit facility within the meaning
of Article 104 of the Treaty if a fixed period of time corresponding to the normal period for the
collection of cheques by the central bank of the Member State concerned has elapsed since receipt
of the cheque, provided that any float which may arise is exceptional, is of a small amount and
averages out in the short term.
                                               Article 6
The holding by the European Central Bank or the national central banks of coins issued by the
public sector and credited to the public sector shall not be regarded as a credit facility within the
meaning of Article 104 of the Treaty where the amount of these assets remains at less than 10% of
the coins in circulation.
 ---pagebreak--- Until 31 December 1996, this figure shall be 15% for Germany.
                                                   Article 7
The financing by the European Central Bank or the national central banks of obligations falling
upon the public sector vis-à-vis the International Monetary Fund or resulting from the
implementation of the medium-term financial assistance facility set up by Regulation (EEC)
No 1969/88 (*) shall not be regarded as a credit facility within the meaning of Article 104 of the
Treaty.
                                                   Article 8
1. For the purposes of Articles 104 and 104b(l) of the Treaty, "public undertaking" shall be
defined as any undertaking over which the public authorities may directly or indirectly exercise a
dominant influence by virtue of their ownership of it, their financial participation therein or the
rules which govern it.
A dominant influence on the part of the public authorities shall be presumed when these
authorities, directly or indirectly in relation to an undertaking:
(a) hold the major part of the undertaking's subscribed capital;
(b) control the majority of the votes attaching to shares issued by the undertaking; or
(c) can appoint more than half of the members of the undertaking's administrative, managerial or
     supervisory body.
2. For the purposes of Articles 104 and 104b(l) of the Treaty, the European Central Bank and the
national central banks do not form part of the public sector.
                                                   Article 9
This Regulation shall enter into force on 1 January 1994.
This Regulation shall be binding in its entirety and directly applicable in all Member States
Done at Brussels,                                                     For the Council
                                                                      The President
 ( ) Council Regulation (EEC) No 1969/88 of 24 June 1988 e s t a b l i s h i n g a s i n g l e
      f a c i l i t y providing medium-term f i n a n c i a l a s s i s t a n c e for Member S t a t e s '
     b a l a n c e s of payments (OJ L 178, 8.7.1988, p. 1 ) .
                                                        -1
 ---pagebreak---                                         Amended proposal for a
                                    COUNCIL REGULATION (EC)                          SYN 467
                    specifying definitions for the application of the prohibition of
                       privileged access referred to in article 104a of the Treaty
THE COUNCIL OF THE EUROPEAN UNION
Having regard to the Treaty establishing the European Community, and in particular Article 104a(2)
thereof,
Having regard to the proposal from the Commission ('),
In co-operation with the European Parliament (*),
Whereas the prohibition of privileged access to financial institutions, as laid down in Article 104a of
the Treaty, forms an essential element of the submission of the public sector in its financing
operations to the discipline of the market mechanism and so makes a contribution to the
strengthening of budgetary discipline; whereas, moreover, it places the Member States on an equal
footing as regards public sector access to financial institutions;
Whereas the Council must specify definitions for the application of such prohibition;
Whereas the Member States and the Community must act with due regard for the principle of an
open market economy in which there is free competition;
Whereas, in particular, this Regulation cannot affect the methods for organizing markets complying
with that principle;
Whereas this Regulation does not seek to interfere with any operation of public financial institutions
complying with the same principle;
Whereas Article 104a of the Treaty prohibits measures establishing privileged access; whereas the
types of acts concerned by this prohibition should be specified; whereas the commitments freely
made by financial institutions in the framework of contractual relations unquestionably cannot be
affected;
*    the initial draft proposal (Doc.(93)371 final - SYN 466-SYN467 of 22.7.93) was confirmed as
    formal proposal with effect from 1.11.1993.
 (*)   OJ c
 (/L) OJ C                 and Decision            of         (not yet published in the Official
       Journal).
                                                      S
 ---pagebreak--- Whereas the same Article provides that prudential considerations may justify departure from the
principle of this prohibition; whereas laws, regulations or administrative actions may not, however,
under the cover of prudential consideration, be used to establish disguised privileged access;
Whereas public undertakings are covered by the same prohibition; whereas they are defined in
Commission Directive 80/723/EEC of 25 June 1980 on the transparency of financial relations
between the Member States and public undertakings, ( );
Whereas, for reasons of monetary policy, financial institutions and, in particular, credit institutions
may be obliged to hold claims against the European Central Bank and/or national central banks;
Whereas the European Central Bank and national central banks may not, as public authorities, take
measures establishing, privileged access; whereas the rules on mobilization or pledging of debt
instruments enacted by the European Central Bank or by national central banks must not be used as a
means of circumventing the prohibition of privileged access;
Whereas, in order to avoid any circumvention of the prohibition, the definitions in Community law of
the various types of financial institution should be supplemented by a reference to those institutions
engaging in financial activities which have not yet been harmonized at Community level, such as, for
instance, branches of third-country establishments, holding and factoring companies, unco-ordinated
undertakings for collective investment in transferable securities (UCITS), institutions for retirement
provision, etc.,
 ( )  OJ L 1 9 5 , 2 9 . 7 . 1 9 8 0 , p . 3 5 .       as last amended  by  Commission      Directive
      93/84/EBC
       (OJ L 2 5 4 , 1 2 . 1 0 . 1 9 9 3 , p . 1 6 ) .
 ---pagebreak--- HAS ADOPTED THIS REGULATION:
                                                 Article 1
 1. For the purposes of Article 104a of the Treaty, "any measure establishing privileged access" shall
be defined as any law, regulation or any other binding legal instrument adopted in the exercise of
public authority which:
-     obliges financial institutions to acquire or to hold liabilities of Community institutions or
      bodies, central governments, regional, local or other public authorities, other bodies governed
      by public law or public undertakings of Member States (hereinafter referred to as "public
      sector"), or
-     confers tax advantages which may benefit only financial institutions or financial advantages
      which do not comply with the principles of a market economy, in order to encourage the
      acquiring or the holding by those institutions of such liabilities.
2. Privileged access shall not be regarded as being established by those measures which give rise to:
-     obligations for funding social housing under special terms such as, inter alia, an obligation to
      centralize funds with public financial institutions, when the funding terms prevailing for the
      public sector are identical to those for funding of the same nature granted to private borrowers
      for the same purposes;
-     the obligation to centralize funds with a public credit institution, insofar as such a constraint is
      an integral part, as at 1 January 1994, of the organization of a particular network of credit
      institutions or of specific savings arrangements designed for households and intended to
      provide the whole of the network or the specific arrangements with financial security. The use
      of such centralized funds must be determined by the management bodies of the public credit
      institution concerned and comply with the principle of a market economy where there is free
      competition;
-     obligations to finance the repair of disaster damage, provided that the conditions for financing
      repairs are not more favourable when damage is sustained by the public sector than when it is
      sustained by the private sector.
                                                 Article 2
For the purposes of Article 104a of the Treaty, "prudential considerations" shall be those which
underlie national laws, regulations or administrative actions based on, or consistent with, EC law and
                                                r Ac
 ---pagebreak--- designed to promote the soundness of financial institutions so as to strengthen the stability of the
financial system as a whole and the protection of the customers of those institutions.
                                                    Article 3
 1. For the purposes of Article 104a of the Treaty, "public undertaking" shall be defined as any
undertaking over which the State or other regional or local authorities may exercise directly or
indirectly a dominant influence by virtue of their ownership of it, their financial participation therein
or the rules which govern it.
A dominant influence on the part of the State or other regional or local authorities shall be presumed
when these authorities, directly or indirectly in relation to an undertaking:
(a)    hold the major part of the undertaking's subscribed capital;
(b)    control the majority of the votes attaching to shares issued by the undertaking; or
(c)    can appoint more than half of the members of the undertaking's administrative, managerial or
       supervisory body.
2.   Without prejudice to their obligation as public authorities not to take measures establishing
privileged access within the meaning of Article 104a of the Treaty, the European Central Bank and
the national central banks and shall not, for the purposes of this Article, be considered as forming
part of the public sector.
3. "National central banks" means the central banks of the Member States and the Luxembourg
Monetary Institute.
                                                    Article 4
1. For the purposes of Article 104a of the Treaty, "financial institutions" means:
-      credit institutions as defined in the first indent of Article 1 of Directive 77/780/EEC ( ),
       insurance undertakings as defined in Article 1, point (a) of Directive 92/49/EEC ( ),
       assurance undertakings as defined in Article 1, point (a) of Directive 92/96/EEC (*),
 ( ) Council Directive 77/780/EEC of 12 December 1977 on the co-ordination of
       the laws, regulations and administrative provisions relating to the taking
       up and pursuit of the business of credit institutions (OJ L 322,
       17.12.1977, p. 30). Directive last amended by Directive 89/646/EEC (OJ L
       386, 30.12.1989, p. 1 ) .
 ( ) Council Directive 92/49/EEC of 18 June 1992 on the co-ordination of laws,
       regulations and administrative provisions relating to direct insurance
       other than life insurance (third Directive on insurance other than life
       insurance) (OJ L 228, 11.8.1992, p. 1 ) .
 ---pagebreak---      UCITS as defined in Article 1(2) of Directive 85/611/EEC (*),
     investmentfirmsas defined in Article 1(2) of Directive 93/22/EEC (*),
-     other undertakings the activities of which are simitar to those of the undertakings referred to in
     the previous indents or the principal activity of which is to acquire holdings of financial assets
     or to transformfinancialclaims.
2. The following institutions do not form part of the financial institutions defined in paragraph 1 :
     the European Central Bank and national central banks,
     Post Officefinancialservices when they form part of the general government sector defined in
     accordance with the European System of Integrated Economic Accounts or when their main
      activity is to act as thefinancialagent of government, and
      the institutions which are part of the general government sector defined in accordance with the
      European System of Integrated Economic Accounts or the liabilities of which correspond
      completely to a public debt.
                                                 Articles
This Regulation shall enter into force on 1 January 1994.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels,
                                                             For the Council
                                                                The President
  ( ) Council Directive 92/96/EEC of 10 November 1992 on the co-ordination of
       laws, regulations and administrative provisions relating to direct life
       assurance (3rd Directive on life insurance)(OJ L 360, 9.12.1992, p. 1).
  ( ) Council Directive 85/611/EEC of 20 December 1985 on the co-ordination of
       laws, regulations and administrative provisions relating to undertakings
       for collective investment in transferable securities (UCITS)(OJ L 375,
       31.12.1985, p. 3 ) . Directive amended by Directive 88/220/EEC (OJ L 100,
       19.4.1988, p. 31).
  ( ) Council Directive 93/22/EEC of 10 May 1993 on investment services in the
       securities field (OJ L 141, 11.6.1993, p. 27).
                                                  At _ a
 ---pagebreak---                                                   Amended proposal for a
                                            COUNCIL HfiGULATON (EC)
                     on the application of the Protocol on the excessive deficit procedure
                           annexed to the Treaty establishing the European Community
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community, and in particular the third
 subparagraph of Article 104c( 14) thereof,
Having regard to the proposal from the Commission (*),
Having regard to the Opinion of the European Parliament (*),
Whereas the definitions of "government", "deficit" and "investment" are laid down in the Protocol
on the excessive deficit procedure by reference to the European System of Integrated Economic
Accounts (ESA) ('); whereas precise definitions referring to the classification codes of ESA are
required; whereas these definitions may be subject to revision in the context of the necessary
harmonization of national statistics or for other reasons; whereas any revision of ESA will be
decided by the Council in accordance with the rules on competence and procedure laid down in
the Treaty;
Whereas the definition of "debt" laid down in the Protocol on the excessive deficit procedure
needs to be amplified by a reference to the classification codes of ESA;
Whereas Council Directive 89/130/EEC, Euratom of 13 February 1989 on the harmonization of
the compilation of gross national product at market prices (*) provides an adequate, detailed
definition of gross domestic product at market prices;
Whereas, under the terms of the Protocol on the excessive deficit procedure, the Commission is
required to provide the statistical data to be used in that procedure;
Whereas detailed rules are required to organize the prompt and regular reporting by the
Member States to the Commission of their planned and actual deficits and of the levels of their
debt;
      The initial draft proposal (Doc.(93)371 final - SYN 466-SYN 467 of 22.7.93) was confirmed as formal proposal with
      effect from 1.11.1993.
(I)OJC
(v) Opinion delivered on (not yet published in the Official Journal).
( ^Statistical Office of the European Communities, European System of Integrated Economic Accounts ESA, second edition.
O O J L 4 9 , 21.2.19X9, p. 26.
                                                            4f
 ---pagebreak--- Whereas, pursuant to Article 104c(2) and (3) of the Treaty, the Commission is to monitor the
development of the budgetary situation and of the stock of government debt in the Member States
and to examine compliance with budgetary discipline on the basis of criteria relating to
government deficit and government debt; whereas, if a Member State does not fulfil the
requirements under one or both criteria, the Commission must take into account all relevant
factors; whereas the Commission has to examine whether there is a risk of an excessive deficit in a
Member State,
                                              Af
 ---pagebreak--- HAS ADOPTED THIS REGULATION:
                                                Section 1
                                               Definitions
                                                Article 1
1. For the purposes of the Protocol on the excessive deficit procedure and of this Regulation, the
terms given in the following paragraphs are defined according to the European System of
Integrated Economic Accounts (ESA). The codes in brackets refer to ESA, second edition.
2. "Government" means the sector of general government (S60), that is central government (S61),
local government (S62) and social security funds (S63), to the exclusion of commercial
operations, as defined in ESA.
The exclusion of commercial operations means that the sector of general government (S60)
comprises only institutional units producing non-market services as their main activity.
3. "Government deficit (surplus)" means the net borrowing (net lending) (N5) of the sector of
general government (S60), as defined in ESA. The interest comprised in the government deficit is
the sum of interest (R41), as defined in ESA.
4. "Government investment" means the gross fixed capital formation (P41) of the sector of
general government (S60), as defined in ESA.
5. "Government debt" means the total gross debt at nominal value outstanding at the end of the
year of the sector of general government (S60), with the exception of those liabilities the
corresponding financial assets of which are held by the sector of general government (S60).
Government debt is constituted by the liabilities of general government in the following categories:
Currency and Deposits (F20 and F30), Bills and Short-term Bonds (F40), Long-term Bonds (F50),
Other Short-term Loans (F79) and Other Medium and Long-term Loans (F89) as defined in ESA.
The nominal value of a liability outstanding at the end of the year is the face value.
The nominal value of an index-linked liability corresponds to its face value adjusted by the
index-related capital uplift accrued to the end of the year.
Liabilities denominated in foreign currencies shall be converted into the national currency at the
representative market exchange rate prevailing on the last working day of each year.
                                                <U
 ---pagebreak---                                                   Article 2
Gross domestic product means gross domestic product at market prices (GDPmp), as defined in
Article 2 of Directive 89/130/EEC, Euratom.
                                                  Article 3
1. Planned government deficit figures mean the figures established for the current year by the
Member States consistent with the most recent decisions of their budgetary authorities.
2. Actual government deficit and government debt level figures mean estimated, provisional,
half-finalized or final results for a past year.
                                                 Section 2
                                     Rules and coverage of reporting
                                                  Article 4
1. As from the beginning of 1994, Member States shall report to the Commission their planned
and actual government deficits and levels of government debt twice a year, the first time before
1 March of the current year (year n) and the second time before 1 September of year n,
2. Before 1 March of year n, Member States:
-       shall report to the Commission their planned government deficit for year n, an up-to-date
       estimate of their actual government deficit for year n-1 and their actual government deficits
       for years n-2, n-3 and n-4;
        shall simultaneously provide the Commission for years n, n-1 and n-2 with their
        corresponding public accounts budget deficits according to the definition which is given
       most prominence nationally and with the figures which explain the transition between this
       public accounts budget deficit and their government deficit. The figures explaining this
       transition which are provided to the Commission shall include, in particular, the figures for
       net borrowing of the subsectors S61, S62 and S63;
-       shall report to the Commission their estimate of the level of actual government debt at the
        end of year n-1 and their levels of actual government debt for years n-2, n-3
        and n-4;
-       shall simultaneously provide the Commission for years n-1 and n-2 with the figures which
                                                  It
 ---pagebreak---       explain the contributions of their government deficit and the other relevant factors
      contributing to the variation in the level of their government debt.
3. Before 1 September of year n, Member States shall report to the Commission:
-     their updated planned government deficit for year n and their actual government deficits for
      years n-1, n-2, n-3 and n-4 and shall comply with the requirements of the second indent of
      paragraph 2;
-     their actual level of government debt for years n-1, n-2, n-3 and n-4, and shall comply with
      the requirements of the fourth indent of paragraph 2.
4. The figures for the planned government deficit reported to the Commission in accordance with
paragraphs 2 and 3 shall be expressed in national currency and in budget years.
The figures for actual government deficit and actual government debt level reported to the
Commission in accordance with paragraphs 2 and 3 shall be expressed in national currency and in
calendar years, with the exception of the updated estimates for year n-1, which may be expressed
in budget years.
Where the budget year differs from the calendar year, Member States shall also report to the
Commission their figures for actual government deficit and actual government debt level in budget
years for the two budget years preceding the current budget year.
                                                 Article 5
Member States shall, in accordance with the procedures laid down in Article 4(1), (2) and (3),
provide the Commission with the figures for their government investment expenditure and interest
expenditure.
                                                 Article 6
Member States shall provide the Commission with a forecast of their gross domestic product for
year n and the actual amount of their gross domestic product for years n-1, n-2, n-3 and n-4, under
the same liming conditions as those indicated in Article 4(1).
                                                 Article 7
In the event of a revision of ESA to be decided on by the Council in accordance with the rules on
competence and procedure laid down in the Treaty, the Commission shall introduce the new
                                                  \t
 ---pagebreak--- references to ESA into Articles 1 and 4.
                                                 Article 8
This Regulation shall enter into force on 1 January 1994.
 This Regulation shall be binding in its entirety and directly applicable in all Member States.
 Done at Brussels,
                                                              For the Council
                                                                 The President
                                                    /fl _ao
 ---pagebreak---                                                 Amended proposal for a
                                                 COUNCIL DECISION
                   on the statistical data to be used for the determination of the key for
                             the financial resources of the European Monetary Institute
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community, and in particular Article 16.1
and 16.2 of the Protocol on the Statute of the European Monetary Institute annexed thereto,
Having regard to the proposal from the Commission ( ),
Having regard to the Opinion of the European Parliament (fy,
Having regard to the opinion of the Committee of Governors,
Having regard to the opinion of the Monetary Committee,
Whereas the European Monetary Institute, hereinafter referred to as "EMI", will be established on
 1 January 1994;
Whereas the EMI will be endowed with its own resources;
Whereas the size of the resources of the EMI will be determined by the Council of the EMI;
Whereas the resources of the EMI will be provided out of contributions by national central banks
in accordance with the key referred to in Article 16.2 of the Protocol on the Statute of the EMI;
Whereas the key for the financial resources of the EMI will be determined before the start of the
second stage;
Whereas the statistical data to be used for the determination of the key will be provided by the
Commission in accordance with the rules adopted by the Council;
Whereas the rules adopted by the Council in this Decision do not constitute a precedent for other
legal acts which the Council could adopt in other areas;
    The initial draft proposal (Doc.(93)371 final - SYN 4 6 6 - SYN 4 6 7 of 2 2 . 7 . 9 3 ) was confirmed as formal proposal with
    effect from 1 . 1 1 . 1 9 9 3 .
 (   )  OJ C
 (fJ)   Opinion delivered on                                                                  (not yet published in the
        Official Journal).
                                                                 2/1
 ---pagebreak--- Whereas the nature of and sources for the data to be used and the method of calculation of the key
must be defined;
Whereas Council Directive 89/130/EEC, Euratom of 13 February 1989 on the harmonization of
the compilation of gross national product at market prices ( ) introduces a procedure for the
adoption by Member States of data on the gross domestic product at market prices, whereas the
member States shall take all the necessary measures to ensure that these data ae forwarded to the
Commission.
 (1)  OJ L 4 9 , 2 1 . 2 . 1 9 8 9 , p . 26
 ---pagebreak--- HAS DECIDED AS FOLLOWS:
                                                Article 1
The statistical data to be used for the determination of the key for the contributions by the national
central banks to the financial resources of the EMI shall be provided by the Commission in
accordance with the rules laid down in the following Articles.
                                                Article 2
Population and Gross Domestic Product at market prices, hereinafter referred to as "GDP mp",
shall be defined according to the European System of Integrated Economic Accounts (ESA) in
force. GDP mp shall mean GDP mp as defined in Article 2 of Directive 89/130/EEC, Euratom.
                                                Article 3
The data on population shall be taken for the year 1992. The mean of the total population over
the course of the year shall be used in accordance with the ESA recommendation.
                                                Article 4
The data on GDP mp shall be taken for each of the years 1987 to 1991. The data on GDP mp for
each Member State shall be expressed in the national currency at current prices.
                                                Article 5
The data on population shall be collected by the Commission (Eurostat) from Member States.
                                                Article 6
The data on GDP mp for the years 1988 to 1991 shall result from the application of
Directive 89/130/EEC, Euratom. The data for 1987 shall be collected by the Commission
(Eurostat) from Member States, which shall make them consistent with the 1988 to 1991 data on
GDP mp.
                                                  *i
 ---pagebreak---                                                 Article 7
1. The share of a Member State in the population of the Community shall be its share in the sum
of the population of the Member States, expressed as a percentage.
2. The GDP mp data for each year and each Member State expressed in national currencies shall
be converted into figures expressed in ecus. The exchange rate used for this purpose shall be the
average of the exchange rates for all working days in a year. The daily exchange rate shall be the
rate calculated by the Commission and published in the "C" series of the Official Journal of the
European Communities.
3. The share of a Member State in GDP mp of the Community shall be its share in the sum of
GDP mp of the Member States over five years, expressed as a percentage.
                                                Article 8
The weighting of a national central bank in the key shall be the arithmetic mean of the shares of the
Member State concerned in the population and in the GDP mp of the Community.
                                                Article 9
The various steps of calculation shall use sufficient digits to ensure their accuracy. The weighting
of national central banks in the key shall be expressed to four decimal places.
                                                Article 10
The data referred to in this Decision shall be communicated by the Commission to the Committee
of Governors of the Central Banks of the Member States before 1 January 1994.
Done at Brussels,
                                                            For the Council
                                                                The President
M - ^
 ---pagebreak---                                             Amended proposal for a
                                             POTINCTL DECISION
                 on the consultation of the European Monetary Institute by the authorities
                             of the Member States on draft legislative provisions
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community, and in particular Article 109F(6)
thereof, and Article 5(3) of the Protocol on the Statute of the European Monetary Institute annexed
to this Treaty,
Having regard to the proposal from the Commission ( ),
Having regard to the Opinion of the European Parliament (*),
Having regard to the opinion of the Committee of Governors,
Whereas the European Monetary Institute, hereafter referred to as "EMI", is to be established on
 1 January 1994;
Whereas the Treaty stipulates that the authorities of the Member States shall consult the EMI on any
draft legislative provision within its field of competence; whereas it is for the Council to set the limits
and the conditions of such consultation;
Whereas this obligation on the authorities of the Member States to consult the EMI shall not
prejudice the responsibility of national authorities for the matters which are the subject of such
provisions;
Whereas this Decision does not concern decisions taken by national authorities in the context of the
implementation of monetary policy;
Whereas consultation of the EMI must not unduly lengthen procedures for adopting legislative
provisions in the Member States; whereas the time limits within which the EMI must deliver its
opinion must, nevertheless, enable it to examine the texts referred to it with the required care;
whereas, in duly justified cases of extreme urgency, for example on account of market sensitivity,
Member States may set a time limit of less than one month; whereas, in these cases particularly,
dialogue between the national authorities and the EMI should enable the interests of both to be taken
into account,
        The initial draft proposal (doc. (93) 436 final of 22.09.1993 was confirmed as a formal
proposal with effect from 1.11.1 993.
 i1)   OJ  c
                                                                                                         u
 ---pagebreak--- HAS ADOPTED THIS DECISION:
                                                   Article 1
 1. The authorities of the Member States shall consult the EMI on any draft legislative provision
within its field of competence pursuant to Article 109F of the Treaty and in particular on:
- currency legislation, the status of the ecu and means of payment;
- the status and powers of national central banks and the instruments of monetary policy;
- the collection, compilation and dissemination of monetary, financial, banking and balance of
   payments statistics;
- clearing and payment systems, in particular for cross-border transactions;
- rules applicable to financial institutions insofar as they influence the stability of financial
   institutions and markets.
2. The EMI shall, immediately on receipt of any draft legislative provision, notify the consulting
authority if, in its opinion, such provision is within its field of competence.
                                                   Article 2
 1. "Draft legislative provisions" shall mean any such provisions which are legally binding and of
general applicability in the territory of a Member State, which lay down rules for an indefinite
number of cases and which are addressed to an indefinite number of natural or legal persons.
2. Draft legislative provisions within the meaning of paragraph 1 shall not include draft provisions
the exclusive purpose of which is the transposition of Community Directives into the law of
Member States.
                                                  Article 3
Each Member State shall take the measures necessary to ensure effective compliance with this
Decision. To that end, it shall ensure that the EMI is consulted at an appropriate stage enabling the
authority initiating the draft legislative provision to have the EMI's opinion before taking its decision
on the substance and that the opinion received from the EMI is brought to the knowledge of the
adopting authority if the latter is an authority other than that which has prepared the legislative
provisions concerned.
                                                                                                        «?
 ---pagebreak---                                                Article 4
The authorities of the Member States preparing a legislative provision may, if they consider it
necessary, set the EMI a time limit for the submission of its opinion which may not be less than one
month from the date on which the President of the EMI receives notification to this effect, save in
case of extreme urgency. Upon expiry of the time limit, the absence of an opinion shall not prevent
further action. Should the opinion of the EMI be received after the time limit, the Member States
shall, nevertheless, ensure that it is brought to the knowledge of the authorities referred to in
Article 3.
                                               Article 5
This Decision is addressed to the Member States.
Done at Brussels,
                                                         For the Council
                                                              The President
                                                                                                   ÎS
 ---pagebreak---                                                                  uivt(9b) 617 tinai
                                                       DOCUMENTS
EN                                                                          06 01
                                 Catalogue number : CB-CO-93-646-EN-C
                                                              ISBN 92-77-61815-9
Office for OflEicial Publications of the European Communities
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