1 January 1994

Second stage of EMU comes into force;  start of the European Monetary Institute;  the European Monetary Cooperation Fund (EMCF) and the Committee of Governors are dissolved;  the tasks of the EMCF and its assets and liabilities are automatically transferred to the EMI;  the Central Bank Governors now meet within the EMI Board under a president who is not member of a central bank of a Member State;  overdraft facilities or any other type of credit facility for public bodies with their national central banks are no longer allowed (Art. 104 of the EC Treaty).

          - EU Bulletin, No 1/2‑1994, p. 13
 

14 February 1994

The Council approves recommendations prepared by the Monetary Committee on coordinating economic policies and on the conduct of the multilateral surveillance procedures within the Council (twice a year:  June and end of the year).  It also endorsed a code of conduct for the content and format of convergence programmes.

          - EU Bulletin, No 1/2‑1994, p. 13
 

19 April 1994

Commission Recommendation concerning the legal treatment of the ECU and of contracts denominated in ECUs in view of the introduction of the single European currency (94/284/EC)

          - OJ L 121, 12.5.1994

including an explanatory note concerning new clauses in the prospectuses for loans and bonds of the European Communities

          - OJ C 130, 12.5.1994
            EU Bulletin, No 4‑1994, p. 15
 

1 May 1994

Official launch of the European Investment Fund by means of an addition to the Protocol on the Statute of the European Investment Bank empowering the EIB Board of Governors to establish such a fund in line with the decision by the Edinburgh European Council (December 1992)

          - EU Bulletin, No 5‑1994, p. 13

The Council decides (94/375/EC) on 6 June 1994 that the Community will participate in the European Investment Fund as a member in its own right.

          - OJ L 173, 7.7.1994
            EU Bulletin, No 6‑1994, p. 31
 

6 May 1994

Adoption by the European Parliament of four resolutions on:

·        the objectives and instruments of a monetary policy
·        the supervision of commercial banks and financial institutions and monetary stability
·        the impact of exchange‑rate flucutations on the Community's internal and external trade
·        the international dimension of the ECU

          - EU Bulletin, No 5‑1994, pp. 12 and 13
 

26 September 1994

Council Decision on the existence of excessive deficits in ten Member States (Belgium, Denmark, France, Germany, Greece, Italy, Netherlands, Portugal, Spain, United Kingdom) pursuant to the new procedures of the Treaty on the European Union (Art. 104c) in connection with policy coordination and budgetary discipline.

          - EU Bulletin, No 9‑1994, p. 12
 

7 November 1994

Council Recommendation to the above‑mentioned Member States to take the appropriate measures to bring to an end their excessive public deficits

          - EU Bulletin, No 11‑1994, pp. 11 and 12
 

7 January 1995

Following the decision of the Austrian Government to participate in the EMS exchange‑rate mechanism, the Ministers and Central Bank Governors of the Member States decide on the conditions under which the Austrian schilling will enter the system;  the central rate of the schilling is fixed at ECU 13.7167.

          - EU Bulletin, No 1‑1995, p. 36
 

20 January 1995

Publication of the Interim Report of the MAAS Group on "The preparation of the changeover to the single European currency"

          - Document submitted to the European Commission
 

6 March 1995

The Ministers and Central Bank Governors of the Member States decide, by mutual agreement, following a common procedure involving the Commission and the European Monetary Institute and after consulting the Monetary Committee, to devalue with effect from 7 March the Spanish peseta by 7% and the Portuguese escudo by 3.6% against the other EMS currencies participating in the exchange‑rate mechanism.

          - Communiqué by the EC Monetary Committee
 

10 May 1995

Publication of the Progress Report of the MAAS Group on "The preparation of the changeover to the single European currency"

          - Document submitted to the European Commission
 

31 May 1995

Publication of the Commission Green Paper on the practical arrangements for the introduction of the single currency (Office for Official Publications of the European Communities, ISBN 92‑827‑4257‑1)

          - EU Bulletin, No 5‑1995, point 1.3.7, p. 12
 

10 July 1995

The Council, acting on a Commission opinion, decides that:

·        excessive deficits exist in Austria, Finland and Sweden;
·        its September 1994 decision on the existence of an excessive public deficit in Germany can be repealed.

          - EU Bulletin, No 7/8‑1995, points 1.3.8 and 1.3.9, p. 14
 

23 October 1995

With a view to an objective interpretation of the convergence criterion "inflation", the Council adopts a Regulation concerning harmonised consumer price indices (OJ C 84, 6.4.1995)

          - EU Bulletin, No 10‑1995, point 1.7.1, pp. 14 and 112
 

31 October 1995

Commission communication to the European Council on the impact of currency fluctuations on the internal market

          - EU Bulletin, No 10‑1995, point 1.3.17, p. 13
 

November 1995

Publication by the European Monetary Institute of the transitional scenario towards a single currency

          - EMI publication
 

15/16 December1995

The Madrid European Council decides on the official name of the single currency ("euro") and the technical scenario for embarking on the third stage of EMU.

          - Conclusions of the Presidency

http://europa.eu/abc/doc/off/bull/fr/9512/i1003.htm
 

22-24 January 1996

Round table on the single currency in Brussel/Bruxelles
   
       - EU Bulletin, N° 1/2-1996, point 1.3.4.
 

28 February 1996

Resolution of the European Parliament on the single currency, employment and growth; it refers to the European confidence pact for employment proposed by the Commission and stresses in the case of an excessive deficit of a Member State that the general economic position must be taken into account .

       - EU Bulletin N° 1/2-1996, point 1.3.3.
       - OJ C 78, 18.3.1996
 

18 April 1996

Resolution of the European Parliament on economic and monetary union and economic and social cohesion.

The Parliament emphasises that economic and social cohesion was one of the fundamental objectives of the European Union; economic and monetary union must be established by taking the primacy of that objective into account.

- EU Bulletin 4-1996, point 1.3.54.
- OJ C 141, 13.5.1996
 

15 May 1996

The Commission adopts two recommendations under the excessive deficit procedure laid down in Article 104c of the EC Treaty, one removing Denmark from the list of countries in an excessive deficit situation and the other finding that such a deficit exists in Germany

- EU Bulletin 5-1996, point 1.3.3
 

3 June 1996

Council gives his assent to the recommendation of the Council of the European Monetary Institute that Mr Alexandre Lamfalussy be reappointed as President of the EMI until the end of the first half of 1997 and that Mr Willem Frederik Duisenberg be appointed to that position as from 1 July 1997.

Reference: Decision taken by common accord by the governments of the Member States at the level of Heads of State or Government on the appointment of Mr A. Lamfalussy as President of the European Monetary Institute:

OJ L 319, 21.12.1993; Bull. 12-1993, point 1.2.53
http://europa.eu/abc/doc/off/bull/en/9606/p103015.htm
 

12 June 1996

Commission communication to the European Council on preparations for economic and monetary union, dealing in particular about  fiscal discipline in the third stage,  relationships between Member States,  the legal framework for the use of the euro, and  promoting public awareness of the euro.

               - EU Bulletin 6-1996, point 1.3.13
 

18 June 1996

Parliament resolution on the Commission communication on the impact of currency fluctuations on the internal market. [ OJ C 198, 8.7.1996 ]

Parliament stresses that only economic and monetary union and the introduction of a single European currency are ultimately likely to provide an answer to the problems arising from exchange-rate turbulence within the European Union. It emphasizes the need for effective coordination of financial and monetary policies within the Union and for coordination and monitoring at international level.
            
             - EU Bulletin 6-1996, point 1.3.17.
 

22-22 June 1996

The European Council (Firenze) requests Member States to step up their efforts to reduce budgetary imbalances. It also welcomed the continued preparations for the third stage of economic and monetary union, in particular the work on budgetary discipline and relationships between participants and non-participants in the euro area, and confirmed that this stage would begin on 1 January 1999.

Reference: Progress report by the Council to the European Council for stage 3 of economic and monetary union (Annex to the conclusions of the Presidency)

http://europa.eu/abc/doc/off/bull/en/9606/i1024.htm
- EU Bulletin 6-1996, point 1.3.7
 

27 June 1996

Council Decision 96/420/EC repealing the decision on the existence of an excessive deficit in Denmark, and, Council Decision 96/421/EC on the existence of an excessive deficit in Germany.

OJ L 172, 11.7.1996
http://europa.eu/abc/doc/off/bull/en/9606/p103010.htm
 

8 July 1996

On a recommendation of the Commission (5.6.1996) the Council adopts for the concerned countries (Belgium, Germany, Greece, Spain, France, Italy, the Netherlands, Austria, Portugal, Finland, Sweden and the United Kingdom) specific recommendations formulating, for each of them, policy objectives with a view to bring to an end the situation of their excessive public deficits.

- EU-Bulletin 7/8-1996, point 1.3.8
 

30 July 1996

Commission working paper on increasing convergence during the third stage of economic and monetary union.

- EU Bulletin 7/8-1996, point 1.3.9.
 

18 September 1996

The Committee of the Regions adopts an own-initiative opinion on economic and monetary union (EMU).

While fully supporting the creation of a monetary union, the Committee emphasizes that both broad popular support for the project and the achievement of real economic convergence were preconditions for the success of the union. The Committee also called for a concomitant strengthening of the political integration of Europe and for further analysis of the effects of the single currency on regional and local authorities.

- EU Bulletin 9-1996, point 1.3.6.
 

26 September 1996

The Economic and Social Committee adopts an own-initiative opinion on the impact of EMU.

While it welcomed the planned monetary union, the Committee put into the foreground economic and social aspects of convergence and measures to increase awareness of the single currency, in particular, it advocates the launch of an information campaign - targeted both on business circles and on the public at large - on the effects of the introduction of the euro.

- EU Bulletin 9-1996, point 1.3.7.
 

12 October 1996

Decision taken by the Ministers for Economic and Financial Affairs and Central Bank governors about the entry of the Finnish markka into the exchange-rate mechanism of the European Monetary System on a central rate at FMK 5.80661 to ECU 1.

- EU Bulletin 10-1996, point 1.3.15.
 

16 October 1996

With view to the introduction of the single currency,  the Commission presents a communication [ COM(96) 499 ] on secondary legislation for the introduction of the euro and two proposals for Council Regulations laying down the legal framework for the use of the euro and providing the necessary legal certainty as regards the introduction of the euro for operators in the financial markets

http://europa.eu/abc/doc/off/bull/en/9610/p103011.htm

On the same day it adopted a communication on the introduction of a stability pact [ COM(96) 496 ], along with two proposals for Council Regulations on the strengthening of the surveillance and co-ordination of budgetary positions (Article 103(5) of the EC Treaty) and on speeding up and clarifying the implementation of the excessive deficit procedure (Article 104c(14) of the EC Treaty).

http://europa.eu/abc/doc/off/bull/en/9610/p103012.htm

Finally the Commission adopts a communication on reinforced convergence procedures and a new exchange-rate mechanism in stage three of economic and monetary union [ COM(96) 498 ].

-EU Bulletin 10-1996, point 1.3.10.
 

31 October 1996

Opinion of the Economic and Social Committee on market implications of the legislation and regulations required for the transition to the single currency.

The Committee notes that European legislation on the euro should not only meet the need to create a sound legal framework but should also be responsive to market requirements. The transition to a single currency should be as straightforward as possible, free of bureaucratic and procedural obstacles and, as far as possible, compatible with the usages and customs of each market.

- EU Bulletin 10-1996, point 1.3.14.
 

4 November 1996

Report from the Commission to the Council and Parliament reviewing the facility providing medium-term financial assistance for Member States' balances of payments.

In this report [ COM(96) 545 ], the Commission examined the operation of the medium-term financial assistance for Member States experiencing difficulties on their current or capital account.

- EU Bulletin 11-1996, point 1.3.21
 

6 November 1996

Commission report to the Council on convergence in the European Union in 1996.

In this report, drawn up under Article 109j(1) of the EC Treaty, the Commission assessed for each Member State the progress made towards economic convergence with a view to determining whether the Member State in question meets the conditions for adoption of the single currency. It concludes that there is still not a majority of Member States meeting the criteria for introduction of the euro before 1 January 1999.

The report's main conclusions are that 10 countries have an inflation rate below the reference value, 11 countries have long-term interest rates below the reference value, 11 countries are participating in the exchange-rate mechanism of the European Monetary System, all but three countries still have excessive government deficits, although the budget situation is rapidly improving, and virtually all countries still have to adjust provisions of national legislation which are inconsistent with the statute of the European Central Bank.
[ COM(96) 560 ]

- EU Bulletin 11-1996, point 1.3.11.
 

11 November 1996

On the basis of the convergence report and the Commission's proposal, and, in the light of the European Monetary Institute's report of 5 November on progress towards convergence in 1996, and, under Article 109j(2) of the EC Treaty, the Council recommends to the European Council,  that it formally confirms that the third stage of monetary union will not begin in 1997 given that there is not a majority of Member States meeting the necessary criteria. (Reference: Proposal adopted by the Commission on 6 November).

- EU Bulletin 11-1996, point 1.3.12.
 

24 November 1996

Decision taken by the Ministers for Economic and Financial Affairs and the Central Bank Governors about the return of the "Lira Italiana" into the exchange-rate mechanism of the European Monetary System on a central rate at ITL 1 906.48 to ECU 1.

The fluctuation margins will be 15% around the bilateral central rates, with the other bilateral central rates and intervention rates in the ERM remaining unchanged.

- EU Bulletin 11-1996, point 1.3.20
 

28 November 1996

The European Parliament (EP) adopts two resolutions and endorses several proposals on EMU matters.

1. Resolution on the impact of monetary policies on the real economy, inflation, interest rates, growth and employment in the third stage of economic and monetary union, and on the economic function of the convergence criteria.
 Parliament called for an improved policy mix between monetary, fiscal, economic and employment policies in order to contribute to growth and employment, and stressed the need for instruments for implementing a proper public-spending policy for the Union. Reaffirming the importance of the independence of the European Central Bank (ECB), it proposes an inter-institutional agreement to guarantee the transparency and democratic legitimacy of the procedure for appointing its members.

- EU Bulletin 11-1996, point 1.3.13
OJ C 380, 16.12.1996

2. Resolution on the report of the European Monetary Institute on the changeover to the single currency.
The EP stressed the need to conduct regular information campaigns on the euro, called on the Commission to submit a proposal on parallel pricing (euro/national currency), welcomed the scenario for the changeover to the single currency and encouraged the Member States not participating in the third stage of EMU from the outset to continue their efforts to achieve convergence.

- EU Bulletin 11-1996, point 1.3.19
OJ C 380, 16.12.1996

3. The EP endorses the proposal of the Commission (COM(96) 499) for a Council Regulation on some provisions relating to the introduction of the euro (Article 235 of the EC Treaty), after amendments, in particular, as to raising awareness among the public and affording consumers legal protection against abuses and fraud which might be committed when the euro is introduced.

- EU Bulletin 11-1996, point 1.3.14
OJ C 380, 16.12.1996

4. After amending the proposals of the Commission (COM(96) 499), among other things, raising awareness of the euro among economic operators in the European Union, promoting the use of the euro from the outset by making conversion software available to financial institutions, and guaranteeing that conversion of national currencies of participating Member States into and out of the euro is free of costs and charges, the EP endorses the proposal for a Council Regulation on the introduction of the euro (Article 109l(4) of the EC Treaty).

- EU Bulletin 11-1996, point 1.3.15
OJ C 380, 16.12.1996

5. The EP endorses the proposal for a Council Regulation on the strengthening of the surveillance and co-ordination of budgetary positions, after the proposal of the Commission (COM(96) 496) had been subject to amendments aiming to ensure, that the high level of unemployment and the need for public investment to help sustain growth and employment be taken into account,  that the Cohesion Fund be maintained during the third stage of economic and monetary union, and that an Employment and Labour Market Committee be established.

  - EU Bulletin 11-1996, point 1.3.16
OJ C 380, 16.12.1996

6. After amending the proposals of the Commission (COM(96) 496), in particular, relating to the interpretation of the notion of `exceptional and temporary circumstances' which might justify the reference value laid down for the government deficit being exceeded, the role of national parliaments in the excessive deficit procedure and the need to inform Parliament, the EP endorses the proposal for a Council Regulation on speeding up and clarifying the implementation of the excessive deficit procedure.

- EU Bulletin 11-1996, point 1.3.17
OJ C 380, 16.12.1996

7. The EP endorses the draft Decision taken by common accord by the governments of the Member States, at the level of Heads of State or Government, which reappoints Mr A. Lamfalussy as President of the European Monetary Institute until the end of June 1997 and appoints Mr W. F. Duisenberg as first President of the European Central Bank from 1 July 1997.

- EU Bulletin 11-1996, point 1.3.18
OJ C 380, 16.12.1996
 

4 December 1996

Commission report to the European Council on the mutually beneficial effects of greater co-ordination of economic and structural policies.

- EU Bulletin 12-1996, point 1.3.2.
 

12 December 1996

The Council of the Union decides on different aspects in relation to the introduction of the single currency:

1. Council Regulation on the introduction of the euro (Article 109l(4) of the EC Treaty).
Commission proposal: OJ C 369, 7.12.1996; COM(96) 499;
Parliament opinion: OJ C 380, 16.12.1996;

- EU Bulletin 12-1996, point 1.3.12.

2. Council Regulation on some provisions relating to the introduction of the euro (Article 235 of the EC Treaty).
Commission proposal: OJ C 369, 7.12.1996; COM(96) 499;
Parliament opinion: OJ C 380, 16.12.1996;

- EU Bulletin 12-1996, point 1.3.13.

3. Council Regulation on the strengthening of the surveillance and co-ordination of budgetary positions (Article 103(5) of the EC Treaty);

4. Council Regulation on speeding up and clarifying the implementation of the excessive-deficit procedure (Article 104c(14) of the EC Treaty).
Commission proposal: OJ C 368, 6.12.1996; COM(96) 496;
Parliament opinion: OJ C 380, 16.12.1996;

- EU Bulletin 12-1996, point 1.3.14.

5. Conclusions on the new exchange-rate mechanism in Stage III of economic and monetary union. Reference: Commission communication (COM(96)498)

- EU Bulletin 12-1996, point 1.3.15.
 

13 December 1996

In accordance with Article 109j(3) of the EC Treaty on entry into the third stage of economic and monetary union, the Council at the level of Heads of State or Government decided that, due to the fact that a majority of Member States did not meet the conditions necessary for the adoption of the single currency, the Community would not enter the third stage of EMU in 1997 and that the procedure provided for in Article 109j(4) of the EC Treaty would be applied as early as possible in 1998. (Decision 96/736/EC)

- EU Bulletin 12-1996, point 1.3.11.
 OJ L 335, 24.12.1996
 

13 December 1996

Decisions (96/734/EC and 96/735/EC) taken by common accord by the Governments of the Member States of the European Community at the level of Heads of State or Government appointing the President of the European Monetary Institute (EMI).

These decisions serve to confirm Mr A. Lamfalussy as President of the EMI until the end of the first half of 1997 and to appoint Mr W.F. Duisenberg to the same post with effect from 1 July 1997.

- EU Bulletin 12-1998, point 1.3.16.
 OJ L 335, 24.12.1996
 

13-14 December 1996

The European Council (Dublin) concluded:

- decisive progress has been made in the preparations for EMU, which will begin on 1 January 1999;
- agreement about the future structure of a new exchange-rate mechanism (ERM2) with those EU    currencies which will not participate in the Euro area
- urgency for the legal framework for the use of the Euro
- agreement on the principles and main elements of the Stability and Growth Pact for ensuring budgetary discipline in EMU;

In particular the European Council underlines the need to ensure durable budget discipline in Stage III of EMU and welcomes the agreement reached on the Stability and Growth Pact.
Furthermore, it invites the Ecofin Council to prepare a draft Resolution on the Stability and Growth Pact recording the commitments of the Member States, the Commission and the Council to a strict application of the Treaty and the legal provisions on budgetary stability.
The Council, meeting in the composition of Heads of State or Government, has taken its decision under Article 109j(3) of the EC Treaty and confirms that the procedure laid down in Article 109j(4) will be applied as early as possible in 1998, with a view to the commencement of the third stage of EMU on 1 January 1999.
The European Council underscores the need to make the euro tangible for citizens. In this regard, it welcomes the designs for the euro bank notes presented by the European Monetary Institute. It also welcomes the arrangements being made by the Commission for the design competition for the coins; this will allow the choice to be made during the Dutch Presidency.
The Heads of State or Government decided to reappoint Baron Alexandre Lamfalussy as President of the European Monetary Institute as of 1 January 1997 until 30 June 1997. They decided to appoint Dr Willem Frederik Duisenberg, President of De Nederlandsche Bank, as President of the European Monetary Institute as of 1 July 1997 until the establishment of the European Central Bank.

- EU-Bulletin 12-1996, point 1.3
 

5 February 1997

The Commission approved the revised versions of the four proposals for Council Regulations relating to the implementation of the Stability Pact and of the legal framework for the introduction of the euro.
The proposals incorporate the amendments proposed by Parliament and accepted by the Commission as well as the conclusions of the European Council which met in Dublin in December 1996

- EU Bulletin 1/2-1997, point 1.2.13.
 

19 March 1997

Proposal for a Council Regulation on the strengthening of the surveillance and co-ordination of budgetary policies (Article 103 (5) of the EC Treaty).

Amended proposal COM(97) 116; OJ C 117, 15.4.1997

- EU Bulletin 3-1997, point 1.3.18.

Proposal for a Council Regulation on speeding up and clarifying the implementation of the excessive deficit procedure (Article 104c (14) of the EC Treaty).
Amended proposal COM(97) 117; OJ C 130, 26.4.1997

- EU Bulletin 3-1997, point 1.3.19
 

9 April 1997

Parliament resolution on the Commission report (COM(96) 545) to the Council and Parliament entitled `Review of the facility providing medium-term financial assistance for Member States' balances of payments'.

Parliament recommends that the Council retains the current facility for supporting balances of payments even after the entry into force of EMU. It also calls on the Commission to draw up a Regulation creating a Community lending instrument for assisting Member States in difficulty, in accordance with Article 103a(2) of the EC Treaty.

- EU Bulletin 4-1997, point 1.3.32.
OJ C 132, 28.4.1997
 

14 April 1997

The Council of the Union adopts a regulation on the strengthening of the surveillance of budgetary positions and the surveillance and coordination of economic policies (Article 103(5) of the EC Treaty).

Amended proposal: COM(97) 116; OJ C 117, 15.4.1997

The purpose of this Regulation is to introduce an early-warning system in order to identify at an early stage significant divergences from medium-term budgetary objectives of close-to-balance or in surplus, to which all Member States have committed themselves.

- EU Bulletin 4-1997, point 1.3.30.
 OJ C 164, 30.5.1997
 

15 April 1997

Annual report of the European Monetary Institute (EMI)

- EU Bulletin 4-1997, point 1.3.31.
 

12 May 1997

Council decisions repealing decisions on the existence of an excessive deficit in the Netherlands and Finland.

The decisions add the Netherlands and Finland to the group of Member States (Denmark, Ireland and Luxembourg) which did not have an excessive deficit in 1996.

- EU Bulletin 5-1997, point 1.3.25.

Council recommendations on the existence of an excessive deficit in Belgium, Germany, Greece, Spain, France, Italy, Austria, Portugal and Sweden.

The Council endorsed all of the Commission proposals presented in April, with the exception of the proposal for a recommendation concerning the United Kingdom, which should make a budgetary adjustment in its 1997 budget.

- EU Bulletin 5-1997, point 1.3.26.
 

29 May 1997

Commission communication (COM(97) 247) to the Council, Parliament and the European Monetary Institute, accompanied by a proposal for a Council Regulation on denominations and technical specifications of euro coins.

The Commission proposes, under Article 105a(2) of the EC Treaty, a definition of the uniform specifications for the first series of euro coins in order to guarantee their smooth circulation within the Community as from 1 January 2002, in accordance with the conclusions of the Madrid European Council.

The proposal consists of two articles. The first defines the denominations and the technical specifications (diameter, thickness, weight, shape, colour, composition and edge) of the eight euro coins, ranging from 1 cent to 2 euro (1 cent, 2 cent, 5 cent, 10 cent, 20 cent, 50 cent, 1 euro and 2 euro). The second stipulates that the Regulation will enter into force on 1 January 1999.

The communication that accompanies the proposal gives the background as well as an account of the consultations held with the main user groups (mainly consumer groups and representatives of the vending machine industry) and emphasises the need for a coinage that is easy to use and recognise, especially for the blind and the visually impaired (primarily by incorporating innovative features - smooth, milled or grooved edges - into the design of the edges).

The Commission proposal accommodates public health concerns by recommending that the nickel content in the coins be kept to a minimum, especially for the coins most commonly used (the low- and medium-value denominations).

- EU Bulletin 5-1997, point 1.3.27.
 

29 May 1997

The EP endorses in a second reading a Council Regulation on the strengthening of the surveillance of budgetary positions and the surveillance and co-ordination of economic policies (Article 103(5)of the EC Treaty), making certain amendments concerning in particular the inclusion of government investment expenditure in the assessment of the budgetary situation of the Member States.

(Amended Commission proposal: COM(97) 116; OJ C 117, 15.4.1997).

- EU Bulletin 5-1997, point 1.3.28
OJ C 182, 16.6.1997

The EP endorses a Council Regulation on speeding up and clarifying the implementation of the excessive deficit procedure (Article 104c(14) of the EC Treaty), after having made certain amendments which stipulate, in particular, that interest on deposits and fines levied on Member States which have an excessive deficit are to constitute resources of the general budget of the European Communities and are not to be distributed among participating Member States.

(Amended Commission proposal: COM(97) 117; OJ C 130, 26.4.1997)

- EU Bulletin 5-1997, point 1.3.29.
OJ C 182, 16.6.1997
 

29 May 1997

Economic and Social Committee opinion on the arrangements for Stage III of economic and monetary union: stability and growth pact for ensuring budgetary discipline, reinforced convergence procedures and a new exchange-rate mechanism.

The Committee endorses the Commission's initiative but makes several comments concerning the derogation from the application of sanctions in cases where the deficit slippage beyond the permissible limits is due to temporary, exceptional circumstances beyond the control of the Member State concerned. It also stresses the need to apply the criterion of the employment trend when examining the contents of the stability programmes put forward by the Member States.

- EU Bulletin 5-1997, point 1.3.30.
 

10 June 1997

The European Parliament (EP) adopts three resolutions:

1. Resolution on the 1996 annual report of the European Monetary Institute.

As regards preparatory work for Stage III of economic and monetary union and its introduction, the EP takes the view that, among others, the monetary policy of the Union is indissociable from the introduction of a Union economic policy based on the close co-ordination of Member States' economic policies.

- EU Bulletin 5-1997, point 1.3.36
OJ C 200, 30.6.1997

2. Resolution on the European Monetary Institute's report on the single monetary policy in Stage III - Specification of the operational framework.

The EP calls, among others, for optimum alignment of exchange-rate policy, for which the Finance Ministers are responsible, with the monetary policy of the ECB. Furthermore, the ECB shall contribute, through a credible monetary policy, both to a stable external value of the euro and to a balanced and appropriate policy mix in the interests of growth, investment and employment in the European Union.

- EU Bulletin 5-1997, point 1.3.37
OJ C 200, 30.6.1997

3. Resolution on the co-ordination of fiscal and taxation policy in the monetary union.

The EP takes the view that national budgetary equilibrium should not be assessed annually but in relation to the whole economic cycle, and that penalty payments for deficits exceeding 3% should take account of the whole cycle. It expresses its concern at the possibility of economic distortions which might result from certain tax differences between Member States of the European Union and is concerned also by the implementation, at regional and/or national level, of incentive strategies based on taxation and social provisions which could lead to unfair competition through tax and social dumping. It believes that such dumping must be averted either through a code of conduct for taxation or by a minimum degree of tax harmonisation, particularly with regard to savings, company taxes and transfrontier taxation. Finally, it stresses the need for an independent central bank and proposes the setting-up of a committee of European Parliament economic advisers made up of recognised experts which would produce reports on the economic situation and make recommendations based on political objectives established by the European Parliament.

- EU Bulletin 5-1997, point 1.3.38
OJ C 200, 30.6.1997
 

16-17 June 1997

The European Council (Amsterdam) approves three resolutions and adopts various regulations facilitating the smooth passage to the third phase of EMU,

1. Resolution on the Stability and Growth Pact

The  European Council reached an agreement on the main elements of the Stability and Growth Pact, among others, safeguarding sound government finances as a means of strengthening the conditions for price stability and for strong sustainable growth conducive to employment creation, and, adherence to the objective of sound budgetary positions close to balance or in surplus.

- EU Bulletin 6-1997, point I.27.
  OJ C 236, 2.8.1997

2. Resolution on growth and employment

Recalling the conclusions of the Essen European Council, the Commission's initiative `Action on employment: A confidence pact', and the Dublin Declaration on employment, the European Council adopts a number of guidelines, among others, it should be a priority aim to develop a skilled, trained and adaptable workforce and to make labour markets responsive to economic change; although primary responsibility in the fight against unemployment remains with the Member States, close co-ordination of the Member States' economic policies at the European level is advocated; the broad guidelines of the economic policies will be enhanced and developed into an effective instrument for ensuring sustained convergence of the economic performances of the Member States.  

- EU Bulletin 6-1997, point I.28
OJ C 236, 2.8.1997

3. Resolution on the establishment of an exchange-rate mechanism in the third stage of economic and monetary union (ERM 2)

With the start of the third stage of economic and monetary union (1January 1, 1999), the European Monetary System will be replaced by an exchange-rate mechanism based, in particular, on the following principles and elements:
 The operating procedures will be laid down in an agreement between the European Central Bank and the national central banks of the Member States outside the euro area.
 The exchange-rate mechanism will link currencies of Member States outside the euro area to the euro. The euro will be the centre of the new mechanism.
 The European Council notes that the governors of the central banks endorse the text of this resolution, including the ±15% fluctuation margins.

- EU Bulletin 6-1997, point I.29
OJ C 236, 2.8.1997

4. Council Regulation (EC) No 1103/97 on certain provisions relating to the introduction of the euro (Article 235 of the EC Treaty)

(Amended Commission proposal; agreed by the Council on 9 June)

This Regulation finally adopted by the Council of the Union (17.6.1997) covers the provisions relating to the introduction of the euro which must enter into force as soon as possible in order to provide the market, business and the public with the necessary legal certainty to ensure timely preparation for a smooth transition to a single currency. It concerns the continuity of contracts and other legal instruments originally denominated in ECUs or in a national currency, the rounding rules for conversion operations and the replacement of references to the ECU in legal instruments by references to the euro at a rate of one euro to one ECU. It is accompanied by a proposal for a Regulation, also establishing the legal framework for the euro, based on Article 109l(4) of the EC Treaty. (> see following Regulation)

- EU Bulletin 6-1997, point 1.3.32
OJ L 162, 19.6.1997

5. Council Regulation on the introduction of the euro (Article 109l(4)of the EC Treaty)

(Amended Commission proposal; ../9701/p102014.htmagreed by the Council on 9 June)

This Regulation finally supported by the European Council can only be formally adopted in 1998 once the participating Member States (i.e. those Member States of the Union which adopt the euro as a single currency in accordance with the EC Treaty) are known. It is complementary to the Regulation (EC) No 1103/97 establishing the legal framework for the euro.

There is now a complete agreement on the two Regulations which constitute the legal framework for the euro,

- EU Bulletin 6-1997, point 1.3.33

6. Council Regulation on denominations and technical specifications of euro coins.

(Commission proposal: COM(97) 247; OJ C 208, 9.7.1997; finally adopted by the Council on July 7)

The European Council welcomes and fully endorses the choice for the design of the euro coins. This agreement was concluded under the condition of a final check on the technical feasibility of the Commission proposal.

- EU Bulletin 6-1997, point 1.3.34

Finally, the European Council invites the Council and the Commission, in co-operation with the European Monetary Institute, to study effective ways of implementing all provisions of Article 109 of the Treaty and in particular Article 109(2) on the possible formulation of general orientations for exchange-rate policy in relation to one or more non-Community currencies,  and,  Article 109(4) on the position of the Community at the international level as regards issues of particular relevance to economic and monetary union and on its representation in compliance with the allocation of powers laid down in Articles 103 and 105, and Article 109b(1) on the provisions on the position of the Council in meetings of the Governing Council of the ECB.
 to examine and indicate how to improve the processes of economic co-ordination in the third stage of economic and monetary union consistently with the principles and practices of the Treaty.

- EU Bulletin 6-1997, point 1.3.25
 

30 June 1997

Council formally adopts two decisions (97/416/EC and 97/417/EC) repealing the Decisions on the existence of an excessive deficit in the Netherlands and in Finland.

There are now five Member States which no longer have an excessive deficit: Denmark, Ireland, Luxembourg, the Netherlands and Finland.

- EU Bulletin 6-1997, point 1.3.29.
OJ L 177, 5.7.1997
 

2 July 1997

Commission communication on the impact of the introduction of the euro on capital markets

This communication contains a report on the work of a consultative group of market participants set up in July 1996, chaired by Mr Alberto Giovannini and comprising financial sector experts from throughout the European Union.

Its aim is to raise awareness of the implications of the introduction of the euro for financial markets and thus to facilitate rapid decisions, by presenting an overview of the questions which arise and possible solutions, and concrete preparations by market authorities, market participants and the financial sector generally.

- EU Bulletin 7/8-1997, point 1.3.16
COM(97) 337
 

7 July 1997

The Council of the Union adopts formally the two regulations in relation to the Stability and growth pact and two regulations related to the legal framework of the euro.

> Regulation (EC) No 1466/97 on the strengthening of the surveillance of budgetary positions and the surveillance and coordination of economic policies (Article 103(5) of the EC Treaty);

> Regulation (EC) No 1467/97 on speeding up and clarifying the implementation of the excessive deficit procedure (Article 104c(14) of the EC Treaty).

- EU Bulletin 7/8-1997, point 1.3.17
OJ L 209, 2.8.1997

> Council regulation on the introduction of the euro (Article 109l(4) of the EC Treaty).

(Reference: Council Regulation (EC) No 1103/97 on certain provisions relating to the introduction of the euro (Article 235 of the EC Treaty): OJ L 162, 19.6.1997); Commission proposal: COM(96) 499; OJ C 369, 7.12.1996)

This regulation cannot be formally adopted until the decision has been taken in 1998 which Member States will adopt the euro.

- EU Bulletin 7/8-1997, point 1.3.18
OJ C 236, 2.8.1997

> Council regulation on denominations and technical specifications of euro coins.

Having noted the positive result of the technical verification of capacity to produce euro coins made from Nordic gold alloy, the Council confirmed the political agreement reached at its previous meeting in June. The Regulation will be formally adopted when the decision on adoption of the euro by the Member States has been taken.

- EU Bulletin 7/8-1997, point 1.3.19
 

23 July 1997

Commission communication on the use of the euro symbol.

In this communication, sent to the Council, Parliament, the Economic and Social Committee and the Committee of the Regions, the Commission urges the widest possible use of the symbol for the euro: the Greek epsilon crossed by two parallel lines.
The Greek epsilon points back to the cradle of European civilisation and the first letter of Europe; the two parallel lines that cross it indicate the stability of the euro.
The Commission also states that it will take all the necessary steps for the registration of the euro symbol with the International Organisation for Standardisation (ISO), which is responsible for the standardisation of glyphs/fonts, keyboards, character transmission codes, etc., with a view to enabling the insertion of the symbol in computer systems.

- EU Bulletin 7/8-1997, point 1.3.20
COM(97) 418
 

25 July 1997

Report of the Commission's Interservice Group on the changeover to the euro.

The Interservice Group on the changeover to the euro was set up by the Commission on 22 January 1997. This first report on its work describes the impact of the changeover in certain areas (Community budget, agricultural policy, administrative expenditure), its impact on Community legislation in general and its practical consequences for the Commission's internal operations.
It also provides an overview of the work to be carried out before and after the start of stage three of economic and monetary union and puts forward recommendations in those areas where policy decisions need to be made.

- EU Bulletin 7/8-1997, point 1.3.21
 

15.9.1997

The Council adopts formally the recommendations which shall bring an end to the situation of an excessive government deficit in Belgium, Germany, Greece, Spain, France, Italy, Austria, Portugal and Sweden.

Reference: Commission proposals: Bull. 4-1997, Council agreement: Bull. 5-1997;

These recommendations provide for measures to be taken within a given period in the nine Member States mentioned. Pursuant to Article 104c of the EC Treaty, such measures will be made public by the Council only if no effective action has been taken in response to its recommendations within the prescribed period of time.

- EU Bulletin 9 - 1997, point 1.2.6.
 

1.10.1997

Commission communication on practical aspects of the introduction of the euro. (doc. COM(97) 491)

In this communication to the Council, Parliament, the Economic and Social Committee and the Committee of the Regions, the Commission provides an overview of preparations by the EU institutions, national authorities and the private sector for the introduction of the euro and identifies the decisions which still need to be taken and the associated time constraints.

- EU Bulletin 10 - 1997, point 1.2.25.
 

1.10.1997

Commission communication to the Council entitled `Towards tax co-ordination in the European Union: A package to tackle harmful tax competition'.

In this communication the Commission proposes to the Council that it should reach political agreement before the end of the year on the broad outlines of a package of measures designed to curb harmful tax competition between Member States.

- EU Bulletin 10 - 1997, point 1.2.47.
 

2.10.1997

Signing of the Treaty of Amsterdam

This treaty completes the Treaty on European Union signed at Maastricht in 1992, particularly with regard to the citizen, employment and social affairs, justice and home affairs.

A new chapter on "Employment" with the articles 125 to 130 was introduced with view to develop close co-ordination of the Member States' economic policies, in particular Articles 102a and 103.

While primary responsibility in the fight against unemployment rests with the Member States, the need was recognised both to enhance the effectiveness and to broaden the content of this co-ordination, focusing in particular on policies for employment. To this end, several steps had been adopted. (see 'Resolution on growth and employment of '16 June 1997) 

- EU Bulletin 10 - 1997, point 1.1.
 

2.10.1997

Parliament resolution on the convergence criteria for economic and monetary union (EMU) and the funding of social security systems in the Member States of the European Union.

Parliament pointed out that neither compliance with the convergence criteria nor the date for stage three of EMU should serve as a pretext to reduce the efforts which are required of the European Union and its Member States to create jobs and to maintain a high degree of social security.

- EU Bulletin 10 - 1997, point 1.2.228.
 

13.10.1997

Council conclusions on the review of the facility providing medium-term financial assistance for Member States' balances of payments.

The Council considered that the facility providing financial assistance introduced by Council Regulation (EEC) No 1969/88 still meets, as regards its principle, arrangements and ceiling, the need which led to its creation. It agreed, however, that the matter should be reviewed before the end of 1998.

- EU Bulletin 10 - 1997, point 1.2.27.
 

5.11.1997

Commission communication on the impact of the changeover to the euro on Community policies, institutions and legislation. (doc. COM(97) 560)

This communication provides a comprehensive overview over the actions needed to complete the Community preparations for the transition to the euro. Furthermore, the Commission examines in particular the consequences of the introduction of the euro in certain sectors and examines the changes needed to make EU legislation compatible with the euro.

- EU Bulletin 11 - 1997, point 1.3.24.
 

17.11.1997

Council decision on the date for the introduction of euro coins and banknotes.

1 January 2002 is fixed as the date for the introduction of euro coins. On 4 November the Council of the EMI had also set 1 January 2002 as the date for the introduction of banknotes.

- EU Bulletin 11 - 1997, point 1.3.26.
 

20.11.1997

Council regulation on denominations and technical specifications of euro coins.

This regulation was subject to amendments by the European Parliament (6.11.1997); in particular, as to prohibit the use of nickel in the surface alloys of the coins, to reduce the number of euro coins from eight to six, to change the size and shape of the coins and to promote acceptance of the new coinage system by the public. (OJ C 358, 24.11.1997)
On an amended proposal from the Commission (14.11.1997; OJ C 386, 20.12.1997; COM(97) 615 ) and after a common position between the Parliament and the Council (17.11.1997) this regulation of the Council makes provision for eight denominations (1, 2, 5, 10, 20 and 50 cent and 1 and 2 euro).
The coins will have a European and a national side. To reduce the risks of fraud, additional sECUrity features have been incorporated in the 1 and 2 euro coins. In response to public health concerns, the use of nickel has been considerably reduced in comparison with current practice in most Member States.

- EU Bulletin 11 - 1997, point 1.3.25.
 

4.12.1997

Parliament resolution on economic policy coordination in the third stage of economic and monetary union common
Parliament emphasises the need for closer coordination of Member States' economic policies, which is vital to the cohesion and stability of the European Union
It also stresses that reinforced economic policy coordination should be matched by improved democratic supervision and calls for a genuine dialogue on the economic guidelines to be established between the two sides of industry. (OJ C 388, 22.12.1997)

- EU Bulletin 12 - 1997, point 1.2.28.
 

10.12.1997

Economic and Social Committee opinion on the Commission communication on the impact of the introduction of the euro on capital markets. (COM(97) 337)
While endorsing the Commission's approach, the Committee emphasises the need for a code of conduct to be drawn up to prevent harmful tax competition between Member States and calls for detailed studies to be made of the impact of the internationalisation of the euro market on conditions for the financing of small and medium-sized enterprises.

- EU Bulletin 12 - 1997, point 1.2.32.
 

11.12.1997

Economic and Social Committee opinion on the Commission communication on the practical aspects of the introduction of the euro. (COM(97) 491)
While endorsing the Commission communication, the Committee emphasises the need to ensure that the changeover to the single currency does not lead to disparity of tax treatment and draws attention to the possible risks associated with the irreversibility of the choice facing firms regarding the use of the euro or national currency for their operations.

- EU Bulletin 12 - 1997, point 1.2.31.
 

13.12.1997

European Council adopted a resolution dealing with:
- economic policy coordination in stage three of economic and monetary union
- the Treaty provisions on the exchange-rate policy, external position and representation of the  Community   (Article 109), and
- the dialogue between the Council and the ECB

While acknowledging that the Council was at the centre of the economic policy coordination and decision-making processes, it agreed that the ministers of the Member States participating in the euro area could meet informally among themselves to discuss issues connected with their shared specific responsibilities for the single currency. The Commission, and the European Central Bank when appropriate, would participate in the meetings. Whenever matters of common interest were involved, however, they would be discussed by ministers of all the Member States

- EU Bulletin 12 - 1997, point I.19.

16.12.1997

Commission communication on preparations for the changeover of public administrations to the euro.
In this analysis the Commission provides firms and individuals with the latest information based on the programmes adopted by the Member States.

- EU Bulletin 12 - 1997, point 1.2.30.
 

17.12.1997

The European Parliament endorses in a second reading a proposal for a Council regulation on denominations and technical specifications of euro coins.
Its amendments are designed in particular to ensure that the euro coins are made of a material that can be easily recycled and that the diameter of the coins varies according to value, so making it easier for users to identify them. Parliament also calls for a 100 euro gold coin to be introduced and for the proposed 0.20 and 0.02 euro denominations to be abandoned.

OJ C 14, 19.1.1998
- EU Bulletin 12 - 1997, point 1.2.29.
 

13.1.1998

Parliament adopts four resolutions on EMU and Euro:
1. on the Commission communication entitled `The impact of the introduction of the euro on capital markets'.

 OJ C 34, 2.2.1998
- EU Bulletin 1/2 - 1998, point 1.3.8.

2. on the Commission's working paper on external aspects of economic and monetary union.

OJ C 34, 2.2.1998
- EU Bulletin 1/2 - 1998, point 1.3.9.

3. on electronic money and economic and monetary union.

OJ C 34, 2.2.1998
- EU Bulletin 1/2 - 1998, point 1.3.10.

4. Parliament resolution on the euro and the consumer.

OJ C 34, 2.2.1998
- EU Bulletin 1/2 - 1998, point 1.3.11.
 

19.1.1998

The Council adopts on the basis of an opinion of the Commission (13.1.1998, COM(1998) 17) a regulation on denominations and technical specifications of euro coins intended for circulation.

- OJ C 35, 2.2.1998
- EU Bulletin 1/2 - 1998, point 1.3.5.
 

6.2.1998

Commission adopts a communication on the information strategy for the euro.

The Commission proposes two key information periods: that from May 1998 (when the Member States which will participate in EMU from 1999 will be designated) to January 1999 (when the euro is launched), and the year 2001, just before the introduction of euro notes and coins. Further it stresses the need for the information campaign to be managed under a partnership between Member States, the Commission and Parliament so as to ensure that messages and instruments are tailored to national cultures and structures.

COM(1998) 39
- EU Bulletin 1/2 - 1998, point 1.3.7.
 

11.2.1998

Commission communication entitled `Update on the practical aspects of the introduction of the euro'.
In this communication the Commission examines certain areas in which important decisions must be taken:

- the period of parallel circulation of notes and coins should be as short as possible;
- the question of simultaneously withdrawing the national bank notes and coins;
- dual display of prices in euros and national currency:
- banking charges for conversion to the euro:

COM(1998) 61
- EU Bulletin 1/2 - 1998, point 1.3.6.
 

20.2.1998

Several proposals of the Commission for a Council dealing with:

 - the consultation of the European Central Bank by national authorities on draft legislative provisions;
- statistical data to be used for the determination of the key for subscription of the capital of the ECB;
- conditions and procedure for applying the tax for the benefit of the European Communities (Regulation (EEC, Euratom, ECSC) No 260/68);
- civil servant aspects for the ECB, (Regulation (Euratom, ECSC, EEC) No 549/69)
- legal framework of the European Central Bank (ECB);

COM(97) 725
- EU Bulletin 1/2 - 1998, point 1.3.3.
 

25.2.1998

Proposal of the Commission on the composition of the Economic and Financial Committee. [ COM(1998) 110 ]

This proposal, based on Article 109c of the EC Treaty, lays down the detailed provisions concerning the composition of the Economic and Financial Committee, which will replace the existing Monetary Committee from the beginning of the third stage of EMU.

- EU Bulletin 1/2 - 1998, point 1.3.4.
 

10.3.1998

Parliament adopts three resolutions:

1. on the Commission communication on practical aspects of the introduction of the euro and on the Commission working paper on preparations for the changeover of public authorities to the euro.

OJ C 104, 6.4.1998
- EU Bulletin 3 - 1998, point 1.2.5.

2. on the euro and tourism.

OJ C 104, 6.4.1998
- EU Bulletin 3 - 1998, point 1.2.6.

 3. on the report of the European Monetary Institute (EMI) on legal convergence in the Member States of the European Union

OJ C 104, 6.4.1998
- EU Bulletin 3 - 1998, point 1.2.7.
 

15.3.1998

The Irish pound is revalued by 3% within the exchange-rate mechanism of the EMS.

At the request of the Irish authorities, the economic and finance ministers (ECOFIN) and Central Bank Governors fix the central rate for the Irish pound to

IEP 0.796244 for one ECU.
- EU Bulletin 3 - 1998, point 1.2.10.
 

15.3.1998

The Greek drachma enters into the exchange-rate mechanism (ERM) of the EMS.

Following the decision of the Greek Government to rejoin the ERM, the economic and finance ministers and Central Bank governors fix the drachma's central rate to

GRD 357 for one ECU.
- EU Bulletin 3 - 1998, point 1.2.9.
 

24.3.1998

The European Monetary Institute adopts its 1998 convergence report.

The conclusions of this report represents reflect those of the Commission as regards the figures for the various criteria.

- EU Bulletin 3 - 1998, point 1.2.2.
 

25.3.1998

Commission presents its report on convergence in the European Union in 1998.

Together with the report produced on the same subject by the European Monetary Institute (EMI), this report, in accordance with Article 109j(1) of the EC Treaty, represents the first stage of the procedure to decide which of the Member States fulfil the conditions necessary for the adoption of a single currency. Denmark and the United Kingdom have notified the Council that they will exercise the right granted to them by the relevant protocols to the EC Treaty concerning them not to join the Member States participating in the euro as from 1 January 1999.
The Commission concludes that 11 Member States (Belgium, Germany, Spain, France, Ireland, Italy, Luxembourg, the Netherlands, Austria, Portugal and Finland) have achieved a high degree of sustainable convergence.

COM(1998) 1999 ]
- EU Bulletin 3 - 1998, point 1.2.1.
 

25.3.1998

The Commission recommends to the Council to repeal the decisions on the existence of excessive deficits in Belgium, Germany, Spain, France, Italy, Austria, Portugal, Sweden and the United Kingdom.

- EU Bulletin 3 - 1998, point 1.2.3.
 

25.3.1998

Commission adopts a recommendation with a view to a Council recommendation pursuant to Article 109j(2) of the EC Treaty.
The  ECOFIN Council itself shall recommend that the Council, meeting at the level of Heads of State or Government, confirm that Belgium, Germany, Spain, France, Ireland, Italy, Luxembourg, the Netherlands, Austria, Portugal and Finland meet the conditions necessary to adopt the single currency on 1 January 1999.

- EU Bulletin 3 - 1998, point 1.2.4.
 

26.3.1998

Economic and Social Committee opinion on the Commission staff working paper (SEC(97) 803) on the external aspects of economic and monetary union.

- EU Bulletin 3 - 1998, point 1.2.8.
 

2.4.1998

Parliament resolution on democratic accountability in the third phase of EMU.

The EP stresses the fact that the independence of the future European Central Bank (ECB) will go further than that of any other central bank and that this unprecedentedly high degree of independence will call for a correspondingly high level of democratic accountability in order to be credible and lastingly accepted.
It also urges an examination of the need for a set of rules for the coordination of economic policy, possibly in the form of an inter-institutional agreement between itself, the Commission and the Council, and gives notice of its decision to convene quarterly meetings on recent monetary and economic developments with the ECB President and/or other members of the Executive Board. It also calls on the Member States not to appoint candidates for the Executive Board that do not have Parliament's approval.

OJ C 138, 4.5.1998
- EU Bulletin 4 - 1998, point 1.2.5.
 

23.4.1998

Commission Recommendations on banking charges for conversion to the euro, dual display of prices and other monetary amounts, and dialogue, monitoring and information to facilitate the transition to the euro. (98/286/EC, 98/287/EC and 98/288/EC)
Following the Commission communication on the practical aspects of the introduction of the euro and the Round table on this subject held on 26 February, these recommendations concern three identified priorities:
 banking charges for conversion to the euro;
 dual display of prices and other national monetary amounts;
 dialogue, monitoring and information to facilitate the transition to the Euro. The Commission calls for a dialogue among all those involved in the changeover, consumer and trade organisations, businesses and Member States.

OJ L 130, 1.5.1998
- EU Bulletin 4 - 1998, point 1.2.3.
 

29.4.1998

Economic and Social Committee opinion on the Commission communication entitled `Growth and employment in the stability-oriented framework of EMU.."
The Committee stresses the need for coordination of economic policies at EU level and draws attention to the lack of comparability between national unemployment statistics and advocates harmonising them.

- EU Bulletin 4 - 1998, point 1.2.2.
 

30.4.1998

Parliament resolution on the convergence report of the European Monetary Institute, the Commission's report on progress towards convergence and the Commission's recommendation with a view to the third stage of economic and monetary union.
The EP welcomes the introduction of the single currency by the 11 Member States which have fulfilled the requisite conditions, approves the Commission's recommendation that the third stage of EMU should begin on 1 January 1999 with those 11 Member States, calls for all the conditions to be met that are necessary for the European Central Bank to be established as soon as possible, and calls on the European Council to propose a single candidate for the Central Bank presidency.

OJ C 152, 18.5.1998
- EU Bulletin 4 - 1998, point 1.2.4.
 

1.-3.5.1998

Special meetings of the Council for deciding that 11 Member States adopt the single currency "Euro" from 1 January 1999.

- EU Bulletin 5 - 1998, point 1.2.4.
 

1.5.1998

Council Decisions abrogating the decisions on the existence of an excessive deficit for Belgium, Germany, Spain, France, Italy, Austria, Portugal, Sweden and the United Kingdom. (98/307/EC to 98/315/EC)

OJ L 139, 11.5.1998
- EU Bulletin 5 - 1998, point 1.2.2.
 

1.5.1998

The Council adopts the recommendation (98/316/EC) in accordance with Article 109j(2) of the EC Treaty;

On the basis of the Commission and European Monetary Institute reports, the Council, acting on a recommendation from the Commission under Article 109j(2) of the Treaty, concludes that Belgium, Germany, Spain, France, Ireland, Italy, Luxembourg, the Netherlands, Austria, Portugal and Finland satisfy the necessary conditions for the adoption of the single currency, and recommend that the Council, meeting at the level of Heads of State or Government, confirm that those Member States satisfied the necessary conditions for the adoption of the single currency on 1 January 1999.

OJ L 139, 11.5.1998
Endorsed by Parliament on 2 May (OJ C 167, 1.6.1998)
 

1.5.1998

Declaration adopted by the Council and the Ministers meeting within the Council.

Accompanying the recommendation (98/316/EC) for a single currency, the Council and the ministers declare that closer coordination of economic policies is necessary in order to realise the full benefits and describe the framework in which such coordination will take place. They agree in particular to start to implement Regulation (EC) No 1466/97 on the strengthening of the surveillance of the budgetary positions and the surveillance and coordination of economic policies from 1 July 1998.

- EU Bulletin 5 - 1998, point 1.2.6.
OJ L 139, 11.5.1998
 

3.5.1998

The Council, meeting at the level of Heads of State or Government, finally confirms that Belgium, Germany, Spain, France, Ireland, Italy, Luxembourg, the Netherlands, Austria, Portugal and Finland fulfil the necessary conditions for the adoption of the single currency on 1 January 1999. (Decision: 98/317/EC in accordance with Article 109j(4) of the Treaty.)

- EU Bulletin 5 - 1998, point 1.2.5.
OJ L 139, 11.5.1998
 

3.5.1998

Council statement on Greek convergence.

- EU Bulletin 5 - 1998, point 1.2.7.
 

3.5.1998

Following the decision of the Heads of State or Government to start the single currency from January 1, 1999, the Council formally adopts two regulations concerning the legal framework for the introduction of the Euro (Regulation (EC) No 974/98) and on the denominations and technical specifications of euro coins (Regulation (EC) No 975/98).

1. Regulation (EC) No 974/98 supplements the resolution of 7 July 1997 (Regulation (EC) No 1103/97) by defining the elements of the legal framework for the introduction of the Euro not yet covered by the latter and which enters into force on 1 January 1999. It provides in particular for the conditions in which the currencies of the participating Member States will be replaced by the Euro (divided into 100 cents) from that date; see in particular:

- EU Bulletin 5 - 1998, point 1.2.8.
OJ L 139, 11.5.1998

2. Regulation (EC) No 975/98 provides that the first series of euro currency will consist of eight coins (1 cent, 2 cent, 5 cent, 10 cent, 20 cent, 50 cent, 1euro and 2 euro) and lays down the technical specifications for the eight coins; see in particular

- EU Bulletin 5 - 1998, point 1.2.9.
OJ L 139, 11.5.1998
 

3.5.1998

Council conclusions concerning the Commission recommendations (98/286/EC to 98/288/EC; OJ L 130, 1.5.1998) on the practical aspects of the introduction of the Euro.
The Council welcomes the three Commission recommendations of 23 April 1998; these form a useful complement to the preparations under way at national level in the countries concerned, in so far as they support a voluntary approach to the questions of banking charges for conversion to the Euro and of the dual display of prices and other monetary amounts, while respecting the freedom of Member States to take whatever measures they consider necessary.

- EU Bulletin 5 - 1998, point 1.2.10.
 

3.5.1998

The Ministers and Central Bank Governors of the Member States adopting the Euro as their single currency, the Commission and the European Monetary Institute publish a joint communiqué on the determination of the irrevocable conversion rates for the Euro.
The communiqué specifies the method to be applied to determine the irrevocable conversion rates for the euro on 1 January 1999 and, in particular, lays down the bilateral central rates which will be used in determining the conversion rates.
The bilateral central rates in the European Exchange Rate Mechanism (ERM) to be used in determining the irrevocable conversion rates for the euro are attached in a table.

- EU Bulletin 5 - 1998, point 1.2.11.
OJ C 160, 27.5.1998
 

13.5.1998

Opinion of the Committee of the Regions on the Commission communication on the information strategy for the Euro.
The Committee considers in particular that the regional and local authorities should be regarded as partners of the Community institutions and the Member States rather than as members of the target public. It also emphasises the importance of the role of education, especially of adults, in information on the Euro.

- EU Bulletin 5 - 1998, point 1.2.14.
 

19.5.1998

The Council adopts a recommendation from the Commission (6.5.1998) on bringing to an end the excessive government deficit in Greece.

- EU Bulletin 5 - 1998, point 1.2.3.
 

26.5.1998

Decision (98/345/EC) on the European Central Bank's (ECB) Executive Board.

Taken by common accord of the governments of the Member States adopting the single currency at the level of Heads of State or Government, Mr Wim Duisenberg was officially appointed President of the ECB for eight years; Mr Christian Noyer was appointed Vice-President of the ECB for four years; Mr Otmar Issing, Mr Tommaso Padoa-Schioppa, Mr Eugenio Domingo Solans and Mrs Sirkka Hämäläinen were appointed members of the Executive Board for eight, seven, six and five years respectively. The appointments take effect on 1 June.
This agreement was already prepared on May 3 by the Council, meeting at the level of Heads of State or Government, with a view to a recommendation which was adopted by the ECOFIN-Council (98/318/EC) the same day (OJ L 139, 11.5.1998). The European Monetary Institute endorsed this agreement on 5 May.
(OJ C 169, 4.6.1998), and the European Parliament approved the appointments recommended by the Council on May 13  (OJ C 167, 1.6.1998).

- EU Bulletin 5 - 1998, point 1.2.12.
OJ L 154, 28.5.1998
 

28.5.1998

The EP endorses the following proposals from the Commission:

 1. A Council decision on the consultation of the European Central Bank by national authorities on draft legislative provisions;
2. A Council decision on the statistical data to be used for the determination of the key for subscription of the capital of the European Central Bank;
3. A Council regulation amending Regulation (EEC, Euratom, ECSC) No 260/68, which lays down conditions and procedures for applying the tax for the benefit of the European Communities;
4. A Council Regulation amending Regulation (Euratom, ECSC, EEC) No 549/69 determining the categories of officials and other servants of the European Communities to whom the provisions of Article 12, the second paragraph of Article 13 and Article 14 of the Protocol on the privileges and immunities of the Communities apply.

(see also Commission proposals: OJ C 118, 17.4.1998; COM(97) 725; Bull. 1/2-1998) .

- EU Bulletin 5 - 1998, point 1.2.13.
OJ C 195, 22.6.1998
 

28.5.1998

Annual Report of the European Monetary Institute (EMI) for 1997.

In this fourth and last annual report, the EMI, in particular examines the economic, monetary and financial situation in the European Union in 1997, in particular with regard to macroeconomic convergence, Member States' monetary policies and the economic and monetary prospects for 1998 and 1999.
takes stock of its preparations for Stage III of economic and monetary union, in particular the setting-up of the single monetary policy, the statistical work carried out and the machinery to be introduced to regulate exchange rate relations between the monetary union and the non-participating Member States.

- EU Bulletin 5 - 1998, point 1.2.15.
 

1.6.1998

The European Central Bank (ECB) starts it work; (Reference: Decision 98/345/EC)

The appointment of the six members of the ECB's Executive Board by the Heads of State or Government on 26 May marks the Bank's establishment and actual commencement of operations, in accordance with Article 109l of the EC Treaty. At the same time, the setting-up of the Bank entails the liquidation of the European Monetary Institute. The ECB is based in Frankfurt, has legal personality and is made up of three decision-making bodies: the Governing Council, the Executive Board and the General Council. It administers the European System of Central Banks, the main aim of which is to maintain price stability. Its tasks are to define and implement the Community's monetary policy, to conduct foreign-exchange operations in accordance with Article 109 of the EC Treaty, to hold and manage the official foreign-exchange reserves of the Member States, and to promote the smooth operation of payment systems.

- EU Bulletin 6 - 1998, point 1.3.4.
 

4.6.1998

First meeting of the `euro-11' group.
The euro-11 group is made up of the ministers of the countries participating in the third stage of economic and monetary union as from 1 January 1999 and, in accordance with the conclusions reached by the Luxembourg European Council, discuss matters of common interest; decisions are taken within the Council of Ministers on Economic and Financial Affairs (ECOFIN Council).

- EU Bulletin 6 - 1998, point 1.3.10
 

5.6.1998

Council decides about the reference basis for the subscription of the capital of the European Central Bank (Decision 98/382/EC).
The statistical data to be used for determining the key for subscription of the Bank's capital (initially EUR 5 billion) are those relating to population and GDP at market prices, as defined according to the European system of integrated economic accounts (ESA).

- EU Bulletin 6 - 1998, point 1.3.7
OJ L 171, 17.6.1998
 

10.6.1998

The Commission adopts the first proposal for the Council to establish a new agrimonetary system on 1 January 1999.

Due to the introduction of the euro, several regulations had to be replaced.

- EU Bulletin 6 - 1998, point 1.3.165
OJ C 224, 17.7.1998
 

29.6.1998

The Council recommends to bring to an end the excessive government deficit in Greece..

- EU Bulletin 6 - 1998, point 1.3.3.
 

29.6.1998

The Council defines the scope and conditions of consultation of the European Central Bank by national authorities concerning draft legislation within its field of competence. (Decision 98/415/EC)

- EU Bulletin 6 - 1998, point 1.3.9
OJ L 189, 3.7.1998
 

1.7.1998

Two Communications of the Commission to the Parliament, the Council, the European Central Bank and the Economic and Social Committee concerning
- combating fraud and counterfeiting of non-cash means of payments, and,
- measures to combat the counterfeiting of Euro notes and coins.

In response to the request by the European Council in June 1997 the Commission examines the issue of fraud and counterfeiting related to the introduction of the Euro.

- EU Bulletin 7/8 - 1998, points 1.3.8 + 1.3.9 + 1.6.14 + 1.5.3.
http://europa.eu/abc/doc/off/bull/en/9807/p103008.htm

http://europa.eu/abc/doc/off/bull/en/9807/p103009.htm
 

1.7.1998

Recommendation of the Commission for a Council decision concerning exchange-rate matters relating to the CFA franc and the Comorian franc. (Doc. COM(1998) 412)

Since competence for monetary and exchange-rate matters in the Member States adopting the euro will be transferred to the Union level as from 1 January 1999, the Commission recommends the adoption of a Council decision which would allow France to maintain, after the French franc has been replaced by the euro, the agreements it has concluded with the UEOMA (West African Economic and Monetary Union) and with the Comores, which guarantee the convertibility of the CFA franc and the Comorian franc into the French franc at a fixed parity. The fixed parity between the euro, on the one hand, and the CFA franc and the Comorian franc, on the other, will be based on the official conversion rate between the euro and the French franc established on 1 January 1999.

- EU Bulletin 7/8 - 1998, point 1.3.3.
 

2.7.1998

The Economic and Social Committee adopts an opinion about considering Europe as an economic entity.

The Committee's opinion focuses on the synergistic effects to be achieved through a co-ordinated economic policies. The pitfalls in pursuing demand-led growth policy at national level are obvious; problems of budget balance, balance of trade and capital outflows which occur when a country pursues an expansionist economic policy level out the more countries follow a co-ordination conceived at the European level. According to some estimates, massive co-ordinated public investment throughout the fifteen countries of the EU could create some 5 million jobs.

- EU Bulletin 7/8 - 1998, point 1.3.1
OJ C 284, 14.9.1998
 

7.7.1998

Recommendations of the European Central Bank for Regulations of the Council:

1. concerning the application of minimum reserves by the European Central Bank;
2. concerning the powers of the European Central Bank to impose sanctions;
3. concerning the collection of statistical information by the European Central Bank.

- EU Bulletin 7/8 - 1998, point 1.3.4
OJ C 246, 6.8.1998

14.7.1998

The European Parliament adopts a resolution concerning the composition of the Economic and Financial Committee.

(Reference: Proposal for a Council decision on the detailed provisions concerning the composition of the Economic and Financial Committee: OJ C 125)

In this resolution the Parliament regrets that it was not consulted about, but merely informed of, the detailed provisions concerning the composition of the Economic and Financial Committee. While believing that the composition of the Committee should be such as to maintain a balance between the monetary and economic aspects of economic and monetary union, Parliament considers that the presence of national central bankers of countries belonging to the euro area on the Economic and Financial Committee would give it a more marked national character, instead of favouring its development towards a more Community dimension. It therefore expresses doubts as to the Committee's future capacity to be a forum for dialogue on coordination of economic policies to promote growth and employment.

- EU Bulletin 7/8 - 1998, point 1.3.5
OJ C 292, 21.9.1998

16.7.1998

The European Parliament adopts a Resolution on the 1997 annual report of the European Monetary Institute.

While welcoming with interest the publication of the European Monetary Institute's fourth annual report, Parliament regrets that it is too general. It takes the view that the monetary policy of the euro area is indissociable from the introduction of a Union economic policy based on the coordination of the Member States' economic policies. It is also surprised that the links between the European Central Bank and the national central banks in implementing monetary policy are not spelt out in greater detail and that, given the current economic environment, no mention is made in the report of monetary policy options aimed at increasing support for the fundamental aims of the Union as laid down in Article 2 of the EC Treaty.

- EU Bulletin 7/8 - 1998, point 1.3.6
OJ C 292, 21.9.1998

29.7.1998

Proposal of the Commission (COM(1998) 492) to amend a Council Regulation on denominations and technical specifications of euro coins. intended for circulation.
In order to satisfy the requests made by the vending machine industry and blind people concerning the technical specifications of the 50 cent and 10 cent euro coins, the Commission proposes to amend the Council Regulation (EC) No 975/98.

- EU Bulletin 7/8 - 1998, point 1.3.7
OJ C 296, 24.9.1998

9.9.1998

1.2.3. Economic and Social Committee own-initiative opinion on employment and the euro.

In this opinion the Committee considers that the economic and political future of the European Union with a single market and a single currency will only run smoothly if current differences in employment figures and income levels not only do not widen further but even narrow down over time. It therefore advocates convergence policies and a coordinated wage, monetary and financial policy. In particular, sectoral wage policy in the various Member States should in each case be geared to average productivity growth and the European Central Bank’s inflation target.

- EU Bulletin 9 - 1998, point 1.2.3

17.9.1998

Resolution of the European Parliament on the global economic and financial crisis.

While recognising that trade liberalisation and transnational investment remain the best way to address the current financial crisis, Parliament is nevertheless concerned that the financial markets are now globalised and not subject to effective international regulation and supervision. It therefore emphasises the need for effective international regulatory and supervisory bodies and believes that this could be achieved through a review of the role of existing institutions, including the International Monetary Fund, the Bank for International Settlements and the World Trade Organisation. It also emphasises that the preparations for the introduction of the euro have been a major factor in preventing currency instability in the euro area and stresses that, with a single monetary policy, the euro countries will need to assume a major role in contributing to the solution of the financial crises affecting the world economy. In this respect, Parliament stresses that the utmost importance must be attached to the adequate international representation of the euro area and EU interests, especially with regard to international institutions. Lastly, it is in favour of close monetary policy coordination between the European System of Central Banks and the United States Federal Reserve System so as to avoid any damage to current growth prospects.

- EU Bulletin 9 - 1998, point 1.2.4
OJ C 313, 12.10.1998

6.10.1998

Recommendations of the European Parliament for Council regulations (EC)

- on the application of minimum reserves by the European Central Bank;

- on the powers of the European Central Bank to impose sanctions, and,

-on the collection of statistical information by the European Central Bank.

Parliament considered in particular that electronic money should be included in the basis for minimum reserves and that remuneration of such reserves, which the European Central Bank (ECB) was free to specify, should be close to market rates. Regarding the statistical reporting requirement, Parliament considered that derogations from the Community statistical principles should be permitted only where the ECB would otherwise be severely hampered in the performance of its duties.
OJ C 328, 26.10.1998

Subject to certain comments, the Commission approved on October 7 the European Central Bank’s three recommendations (COM(1998) 556)

- EU Bulletin 10 - 1998, point 1.2.3

6.10.1998

The European Parliament adopts a resolution on the impact of the changeover to the euro on Community policies, institutions and legislation. (Reference: Commission communication: COM(97) 560)
Parliament approved the practical steps already proposed with a view to amending the Staff Regulations of officials and other servants of the Communities and the agri-monetary scheme to take account of the changeover to the euro. It welcomed the fact that the introduction of the euro would have a positive effect on the revenue and expenditure sides of the Community budget, that the exchange risk borne by the budget would be considerably reduced and that currency management would be significantly simplified.

- EU Bulletin 10 - 1998, point 1.2.4
OJ C 328, 26.10.1998

9.10.1998

The European Parliament endorses two proposals for a Council regulation;
- establishing agrimonetary arrangements for the euro;
- on transitional measures to be applied under the common agricultural policy with a view to the introduction of the euro

- EU Bulletin 10 - 1998, point 1.2.146 + 147
OJ C 328, 26.10.1998

22.10.1998

1.2.5. Parliament resolution on foreign currency reserves in the third stage of economic and monetary union.

Adopted on 22 October. Considering it necessary to address the question of foreign exchange reserves in stage three of economic and monetary union, Parliament stated that it was not in favour of reducing the reserve holdings of the European System of Central Banks (ESCB) during the transitional phase of the introduction of the euro, but considered that a carefully planned reduction of foreign reserve assets would be desirable at a later date, and that this would help to achieve an optimal level and portfolio of reserve holdings in the ESCB in the long term. It approved the decision of 8 July 1998 by the Board of Governors of the ECB to make an initial transfer in gold of 15 % of foreign reserve assets from the national central banks to the European Central Bank and called, in view of the high levels of the national central banks’ foreign currency reserves held in gold, for a gold euro coin to be minted, a decision which might also have a stabilising effect on the price of gold. Finally, it called on the ECB to issue clear guidelines laying down rules for the division of tasks between the ECB and the national central banks and defining all operating procedures for the administration of foreign reserve assets.

- EU Bulletin 10 - 1998, point 1.2.5
OJ C 341, 9.11.1998

9.11.1998

Proposal on the representation and position taking of the Community at international level in the context of economic and monetary union. (COM(1998) 637)
The Commission proposes to the Council that the representation of the Community at international level when economic and monetary issues are discussed should be undertaken by the Council with the Commission and by the European Central Bank (ECB). It also specifies the procedures for such representation. Council participation would be assumed by a Member State that has the Euro as its currency. In those cases where the Member State that holds the office of President of the Council does not have the Euro as its currency, participation for the Council in the representation of the Community at international level would be assumed by the Member State that is next to hold the office of President of the Council and has the Euro as its currency. The procedures for the participation of the other two institutions of the Community, the Commission and the ECB, would be decided by the institution concerned in accordance with its statutes.

- EU Bulletin 11 - 1998, point 1.2.6

18.11.1998

Proposal of the European Parliament amending Council Regulation (EC) No 975/98 on denominations and technical specifications of euro coins intended for circulation.

In a first reading of the amendments of this regulation, the European Parliament proposes, among others, the production of a gold 100 Euro coin.

- EU Bulletin 11 - 1998, point 1.2.7
OJ C 379, 7.12.1998

18.11.1998

Recommendation for a Council decision concerning exchange-rate matters relating to the Cape Verde escudo.

The Commission recommends the adoption of a Council decision which would allow Portugal to maintain, after the Portuguese escudo has been replaced by the Euro, the co-operation agreement it has concluded with Cape Verde, which guarantees the convertibility of the Cape Verde escudo into the Portuguese escudo at a fixed parity. (COM(1998) 663)

- EU Bulletin 11 - 1998, point 1.2.4

19.11.1998

Committee of the Regions opinion on the Commission communication (COM(1998)103) entitled ‘Growth and employment in the stability-oriented framework of EMU:

The purpose of this opinion is to contribute to the discussion in preparation for the broad economic policy guidelines for 1999 since the Committee is not involved in the procedure laid down in Article 103(2) of the EC Treaty. The Committee would like special emphasis to be placed on decentralisation and on the role of local and regional authorities, whose importance is increasing as a result of the growing global liberalisation of trade.

- EU Bulletin 11 - 1998, point 1.2.1

23.11.1998

Council Decision 98/683/EC concerning exchange-rate matters relating to the CFA franc and the Comorian franc.

On a recommendation of the Commission (COM(1998) 412) the Council adopts a decision authorising France to continue, after the French franc has been replaced by the Euro, its present agreements with the West African Economic and Monetary Union and the Comores, which guarantee the convertibility of the two currencies into the French franc at a fixed parity.

- EU Bulletin 11 - 1998, point 1.2.5
OJ L 320, 28.11.1998

23.11.1998

Council adopts three Regulations with view of starting the third stage of EMU on January 1, 1999:

> Regulation (EC) No 2531/98 concerning the application of minimum reserves by the European Central Bank;

> Regulation (EC) No 2532/98 concerning the powers of the European Central Bank to impose sanctions;

> Regulation (EC) No 2533/98 concerning the collection of statistical information by the European Central Bank.

In accordance with the procedure laid down in Article 106(6) of the EC Treaty and in Article 42 of the Statute of the European System of Central Banks and the European Central Bank, the Council adopts three regulations, the first on the application of minimum reserves by the European Central Bank, the second on the possibility of its imposing fines and periodic penalty payments on firms for infringing its regulations or decisions, and the third on authorisation to collect statistical information in order to carry out the tasks of the European System of Central Banks.

- EU Bulletin 11 - 1998, point 1.2.8
OJ L 318, 27.11.1998

23.11.1998

Council conclusions on Euro collector coins.

The Council welcomed the issue of Euro collector coins, defined as commemorative and bullion coins which are legal tender but which are not produced with a view to their entry into circulation. It stressed that such coins will be legal tender in the country of issue and called on national authorities to set up arrangements whereby they give par value for collector coins issued by other Euro-zone Member States and presented to them, claiming the value back from the issuer. It also stated that such coins should not be issued during the interim period ending on 31 December 2001.

- EU Bulletin 11 - 1998, point 1.2.9

3.12.1998

Parliament resolution on the proposal for a Council decision on the representation and position-taking of the Community at international level in the context of economic and monetary union.

The European Parliament strongly supports the Commission’s proposal to entrust representation of the Euro area to the Council, the Commission and the European Central Bank. However, in order to ensure democratic control of this ‘single voice’ of the Euro area, Parliament calls on the Commission and the Council to amend the proposal so as to ensure that Parliament is fully informed of all positions taken at Community level before they are announced and of the outcome of meetings within international forums.

- EU Bulletin 12 - 1998, point 1.2.13
OJ C 398, 21.12.1998

11./12.12.1998

The European Council in Wien for better co-ordination of economic policies

The introduction of the Euro will lead to the creation of one of the largest currency areas in the world. This will imply global responsibilities for the Union and the necessity to speak with one voice and to be effectively represented.

In its conclusion the European Council emphasises that it will be necessary to both deepen and strengthen economic policy co-ordination, within the agreed framework, in order to ensure the success of EMU and to support sustainable job-creating growth.

- EU Bulletin 12 - 1998, point  I.5. 7.

15.12.1998

Parliament resolution on the Euro as a parallel currency.

Parliament considers that no barriers of any kind should be set by any public authorities in any Member State to the parallel use of the Euro in the United Kingdom, Sweden, Denmark and Greece, which will not be involved in the start of the third stage of economic and monetary union on 1 January 1999, and that the central banks of those countries should make official statements before 1 January 1999 on how they envisage parallel Euro use will develop in their respective economies over the next three years and how they recommend financial institutions, enterprises and consumers should act in these circumstances.

- EU Bulletin 12 - 1998, point 1.2.14

16.12.1998

Parliament resolution on the Commission communication on the information strategy for the Euro.

Welcoming the Commission communication on the information strategy for the Euro (COM(1998) 39), Parliament calls for the information campaign to be extended until the end of 2002 and insists that it be financed by the EU budget under a specific programme. It recommends that the general public be among the main target groups of the Euro information campaign, with special attention being given to the elderly, the economically and socially disadvantaged, those with visual, auditive, mental or physical handicaps and illiterate people and recommends that the main focus be on schools, universities and mass media (radio, television) as well as the local press.

- EU Bulletin 12 - 1998, point 1.2.15

21.12.1998

Council Decision 98/743/EC on the detailed provisions concerning the composition of the Economic and Financial Committee.

Based on Article 109c of the EC Treaty, the Council formally adopts the detailed arrangements concerning the composition of the Economic and Financial Committee, which is to replace the present Monetary Committee at the beginning of the third stage of economic and monetary union. It stipulates that the Member States, the Commission and the European Central Bank will each appoint two members and may also appoint two alternate members. These members will be selected from among experts possessing outstanding competence in the economic and financial field.

- EU Bulletin 12 - 1998, point 1.2.11
OJ L 358, 31.12.1998

31.12.1998

Council Regulation (EC) No 2866/98 on the conversion rates between the Euro and the currencies of the Member States adopting the Euro.

According to Article 109l(4) of the EC Treaty the Council, acting with the unanimity of the Member States without a derogation, on a proposal from the Commission (COM(1998) 732) and after consulting the European Central Bank (OJ C 412, 31.12.1998), irrevocably fixes the conversion rates between the Euro and the currencies of the 11 Member States adopting the single currency.

The introduction of the Euro requires the adoption of the conversion rates at which the Euro will be substituted for the national currencies and at which the Euro will be divided into national currency units. Henceforth, every reference to the ECU in a legal instrument will be replaced by a reference to the Euro at a rate of one Euro to one ECU. The conversion rates adopted are given as one Euro expressed in terms of each of the national currencies of the Member States adopting the Euro. Lastly, to ensure a high degree of accuracy, the rates have six significant figures.

- EU Bulletin 12 - 1998, point 1.2.10

31.12.1998

Council decisions regarding agreements concerning monetary relations with the Principality of Monaco, the Republic of San Marino and the Vatican.
Since the competence for monetary and exchange rate matters of the Member States adopting the euro will be transferred to the European level as from 1 January 1999, the Community had to decide on the future of the agreements concluded between France and the Principality of Monaco and between Italy and the Republic of San Marino and the Vatican.
On a Recommendations (of the Commission, 18.12.98) the Council adopts three agreements allowing these countries to issue coins denominated in Euro.
COM(1998) 789

- EU Bulletin 12 - 1998, point 1.2.6
OJ L 30, 4.2.1999

31.12.1998

Council decision concerning the monetary arrangements in the French territorial communities of Saint-Pierre-et-Miquelon and Mayotte.
On a proposal from the Commission (22.12.98) the Council decides that the Euro shall become the currency of these two communities and that France grant legal tender status in these territories to banknotes and coins issued by the European System of Central Banks and the Member States adopting the Euro. (doc.COM(1998) 801)

- EU Bulletin 12 - 1998, point 1.2.7
OJ L 30, 4.2.1999

31.12.1998

Council Decision 1999/8/EC adopting the statutes of the Economic and Financial Committee.

Agreed by the Council on 1 December, on an opinion of the Commission delivered on 18 December (COM(1998) 783), the Council finally adopts this decision on 31 December. It sets out the detailed provisions concerning the statutes of the Economic and Financial Committee, which is to replace the present Monetary Committee at the beginning of the third stage of economic and monetary union. It stipulates in particular that the tasks to be carried out by the Committee are those described in Article 109c(2) and (4) of the EC Treaty and that the Committee:
may be consulted during the procedure leading to decisions relating to the exchange rate mechanism of the third stage of economic and monetary union;
prepares the Council’s reviews of the development of the exchange rate of the Euro, without prejudice to Article 151 of the EC Treaty;
provides the framework within which the dialogue between the Council and the European Central Bank (ECB) can be prepared and continued at the level of senior officials from ministries, national central banks, the Commission and the ECB.
The decision also establishes that the Committee will elect its president, by majority vote, from among its members who are senior officials in the national administrations, for a renewable term of two years.

- EU Bulletin 12 - 1998, point 1.2.12
OJ L 5, 9.1.1999