23.12.98 Official Journal of the European Communities L 347/3 COUNCIL REGULATION (EC, ECSC, EURATOM) No 2779/98 of 17 December 1998 amending the Financial Regulation of 21 December 1977 applicable to the general budget of the European Communities THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 209 thereof, Having regard to the Treaty establishing the European Coal and Steel Community, and in particular Article 78h thereof, Having regard to the Treaty establishing the European Atomic Energy Community, and in particular Article 183 thereof, Having regard to the proposal from the Commission ('), Having regard to the opinion of the European Parlia- ment (%), Having regard to the opinion of the Economic and Social Committee (%), Having regard to the opinion of the Court of Auditors (*), Having regard to the opinion of the Committee of the Regions, Whereas the conciliation provided for by the Joint Declaration of 4 March 1975 by the European Parliament, the Council and the Commission has taken place in a conciliation committee; Whereas it is appropriate to amend the Financial Regula- tion of 21 December 1977 applicable to the general budget of the European Communities (°), hereinafter referred to as the ‘Financial Regulation’, in order to take account of the start of the third phase of economic and monetary union; Whereas, in accordance with Council Regulation (EC) No 1103/97 of 17 June 1997 on certain provisions relating to the introduction of the euro (%), all references to the ecu are replaced by references to the euro at the rate of EUR 1 to ECU 1; whereas, in accordance with Council Regula- tion (EC) No 974/98 of 3 May 1998 on the introduction of the euro (’), the euro will be the currency of those Member States which have adopted the single currency within the meaning of the Treaty establishing the Euro- pean Community; Whereas, any reference in this Regulation to the euro must be read as a reference to the currency unit referred () OJ C 149, 15. 5. 1998, p. 21. () OJ C 313, 12. 10. 1998, p. 34. () OJ C 284, 14. 9. 1998, p. 54. () Opinion delivered on 22 October 1998 (not yet published in the Official Journal). () OJ L 356, 31. 12. 1977, p. 1. Regulation as last amended by Regulation (EC, ECSC, Euratom) No 2548/98 (OJ L 320, 28. 4.1998, p. 1). () OJ L 162, 19. 6. 1997, p. 1. () OJ L 139, 11. 5. 1998, p. 1. to in the second sentence of Article 2 of Regulation (EC) No 974/98; Whereas, following the adoption of Council Regulation (EC) No 1467/97 of 7 July 1997 on speeding up and clarifying the implementation of the excessive deficit procedure (¥), a mechanism must be provided for ensuring that the revenue from fines imposed on Member States by the Council is allocated to the expenditure intended for the distribution of such revenue between the Member States participating in the euro which do not have an excessive deficit, while guaranteeing that the require- ments of budgetary transparency in those operations are met, HAS ADOPTED THIS REGULATION: Article 1 The Financial Regulation is hereby amended as follows: 1. The following indent shall be inserted after the first indent in the second subparagraph of Article 4(2): ‘— interest on the deposits and fines referred to in Section 4 of Regulation (EC) No 1467/97 (%), in accordance with Article 132a. () OJ L 209, 2.8.1997, p. 6 and corrigenda in OJ L 46, 17.2.1998, p. 20 and OJ L 128, 30.4.1998, p. 71 2. Article 11 shall be replaced by the following: Article 11 1. The budget shall be drawn up in euro. 2. The euro shall be the single currency as defined in Council Regulation (EC) No 974/98 of 3 May 1998 on the introduction of the euro (%). 3. Without prejudice to specific provisions deriving from the application of sector-specific rules governing either revenue or expenditure, the rights and obligations of the Communities shall be expressed and executed in euro. 4. Conversions between the euro and the curren- cies of the Member States which have not adopted the euro shall be made at the exchange rate applicable on the day of the operation; derogations from this prin- ciple may be permitted in exceptional cases, in accordance with the implementing rules referred to in Article 139. (*) OJ L 209, 2. 8. 1997, p. 6 and corrigenda in OJ L 46, 17. 12. 1998, p. 20 and OJ L 128, 30. 4. 1998, p. 71.