The continuity of contracts in the transition to the third stage of economic and monetary union

Common Market Law Review

Volumn 33, Issue 6, 1996, Pages 1117-1132

  Wölker, Ulrich ^a  

^a EUROPEAN COMMISSION   (Belgium)

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EID: 3042888446     PISSN: 01650750     EISSN: None     Source Type: Journal    
DOI: None     Document Type: Article

References (31)

1. This term is used to describe the Member States which adopt the single currency (cf. infra note 9).
2. At the European Council of Madrid (15 and 16 Dec. 1995), it was decided, by way of "agreed and definitive interpretation of the relevant Treaty provisions", that "the name given to the European currency shall be Euro", instead of "the generic term 'ECU' used by the Treaty"; Presidency Conclusions, part A, I, A.I.2.
3. ". . . the national currencies and the Euro will become different expressions of what is economically the same currency"; Presidency Conclusions, part B, annex 1, point 9.
4. Council Regulation (EC) No. 3320/94 of 22 Dec. 1994, on the consolidation of the existing Community legislation on the definition of the ECU following the entry into force of the Treaty on European Union; O.J. 1994, L 350/27.
5. See supra note 2.
6. It remains to be seen how this will be done in practice, for example in order to avoid a distortion of the conversion rates due to speculative movements on the markets just before the entry into the third stage.
7. Presidency Conclusions, part A, I, A.I.6; part B, annex 1, point 10.
8. Art. 109J(4). This has been decided in Madrid, in the knowledge even then that a majority of Member States would not fulfil the necessary conditions for the third stage to start already in 1997 (Art. 109J(3)).
9. The whole Community will "enter the third stage", but only the Member States which fulfil the necessary conditions will "adopt the single currency" (cf. the wording of Art. 109J(3) and (4); the others are referred to as "Member States with a derogation" (Article 109K(1)). The United Kingdom and Denmark have the possibility to decide freely whether they want to participate (see Protocols No. 11 and No. 12, and infra note 13).
10. See supra note 4.
11. Commission Recommendation of 19 April 1994, concerning the legal treatment of the ECU and of contracts denominated in ECU in view of the introduction of the single European currency; O.J. 1994, L 121/43.
12. See infra section 5.
13. Protocols No. 11 (on certain provisions relating to the United Kingdom of Great Britain and Northern Ireland) and No. 12 (on certain provisions relating to Denmark).
14. ". . . a plan in stages will be worked out during 1970 with a view to the creation of an economic and monetary union"; Final communiqué of the Hague Summit Conference, Bull. E.C. 1-1970, p. 11/15 (point 8).
15. COM(95) 333 final, of 31.5.1995, point 130.
16. Part A, I, A.I.6.
17. Part B, annex 1, point 10.
18. But see infra section 5.
19. Irrespective of the fact that it is most likely that the Community institutions will also use the Euro, as they now widely use the ECU.
20. Even though the UK and Denmark can decide freely whether they want to move to or participate in the third stage (Point 1 of Protocol No. 11 on the UK, point 1 of Protocol No. 12 on Denmark).
21. See Art. 109K(2) EC, Points 10 and 11 of Protocol No. 11 on the UK, Points 4 and 5 of Protocol No. 12 on Denmark.
22. See Arts. 47.1 (2nd indent) and 4 (a) (1st indent) of the ECB Statute (Protocol No. 3).
23. This includes the UK (if it decides to opt out), despite point 5 of Protocol No. 11 on the UK, according to which Art. 109L(4) does not apply to the UK in that case. This clause only spells out the obvious institutional consequences of an opt-out (i.e. the UK is excluded from the vote in the Council), but does not go beyond that, as the second sentence indicates.
24. See also Protocol No. 10 on the transition to the third stage of economic and monetary union and, in general, Art. 5 EC.
25. See supra section 1.1.
26. See supra section 1.2.
27. See supra section 4.
28. COM(96) 499 final.
29. See supra section 2.1.
30. See supra section 2.2.
31. See supra section 4.