98/683/EC: Council Decision of 23 November 1998 concerning exchange rate matters relating to the CFA Franc and the Comorian Franc
L 320/58 EN Official Journal of the European Communities 28. 11. 98 II (Acts whose publication is not obligatory) COUNCIL COUNCIL DECISION of 23 November 1998 concerning exchange rate matters relating to the CFA Franc and the Comorian Franc (98/683/EC) THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 109(3) thereof, Having regard to the recommendation from the Commis- sion, Having regard to the opinion of the European Central Bank (1), (1) Whereas according to Council Regulation (EC) No 974/98 of 3 May 1998 on the introduction of the the euro will be substituted as from 1 euro (2), January 1999 for the currency of each participating Member State at the conversion rate; (2) Whereas the Community will have the competence for monetary and exchange rate matters in the Member States adopting the euro as from the same date; (3) Whereas the Council is to determine the appro- priate arrangements for the negotiation and conclu- sion of agreements concerning monetary or foreign exchange regime matters; (4) Whereas France has concluded several agreements with the UEMOA (Union économique et monét- aire ouest-africaine), the CEMAC (Communauté économique et monétaire de l’Afrique Centrale) (1) Opinion of 23 September 1998 (not yet published in the Offi- cial Journal). (2) OJ L 139, 11. 5. 1998, p. 1. and the Comores which are intended to guarantee the convertibility of the CFA and Comorian francs into the French franc at a fixed parity (3); (5) Whereas the euro will be substituted for the French franc on 1 January 1999; (6) Whereas the the CFA and convertibility of Comorian francs is guaranteed by a budgetary commitment of the French authorities; whereas the French authorities have given the assurance that the agreements with the UEMOA, the CEMAC and with the Comores have no substantial financial implications for France; (7) Whereas these agreements are unlikely to have any material effect on the monetary and exchange rate policy of the euro area; whereas in their present form and state of implementation these agreements are therefore unlikely to present any obstacle to a (3) Convention de coopération monétaire du 23 novembre 1972 entre les états membres de la Banque des états de l’Afrique centrale (BEAC) et la République française, as amended; Convention de compte d’opérations du 13 mars 1973 entre le ministre de l’économie et des Finances de la République Française et le Président du Conseil de l’administration de la Banque des états de l’Afrique Centrale, as amended; Accord de coopération du 4 décembre 1973 entre la République fran- çaise et les Républiques membres de l’union monétaire ouest- africaine, as amended; Convention de compte d’opérations du 4 décembre 1973 entre le ministre de l’économie et des Finances de la République Française et le Président du conseil des ministres as l’Union monétaire amended; Accord de coopération monétaire du 23 novembre 1979 entre la République française et la République fédérale islamique des Comores, as amended; Convention de compte d’opérations du 23 novembre 1979 entre le ministre de l’économie et des Finances de la République Française et le ministre des Finances, de l’économie et du Plan de la Ré- publique fédérale des Comores, as amended. ouest-africaine, de 28. 11. 98 EN Official Journal of the European Communities L 320/59 smooth functioning of economic and monetary union; whereas nothing in these agreements can be construed as implying an obligation for the Euro- pean Central Bank or any national central bank to support the convertibility of the CFA or Comorian franc; whereas modifications to the existing agree- ments will not lead to any obligations for the Euro- pean Central or any national central bank; (8) Whereas France and the African signatories to the agreements are willing to continue the present agreements after the substitution of the euro for the French franc; whereas it is appropriate that France may continue the present agreements after the substitution of the euro for the French franc and that France and the African signatories to the agreements sole responsibility; them under implement their (9) Whereas it is necessary for the Community to be informed on a regular basis about the implementa- tion and envisaged modifications of the agree- ments; (10) Whereas the modification or implementation of existing agreements will be without prejudice to the primary the Community’s exchange-rate policy to maintain price stability, in accordance with Article 3a(2) of the Treaty; objective of (11) Whereas it is necessary to involve the competent Community bodies before making any changes to the present agreements; the nature or scope of whereas this applies to the membership of the agreements and to the principle of free convert- ibility at a fixed parity between the euro and the CFA and Comorian francs, convertibility being guaranteed by a budgetary commitment of the French Treasury; (12) Whereas the decision does not establish a pre- cedent with respect to any arrangements that may be decided in the future with respect to the nego- tiation and conclusion of agreements concerning monetary or foreign exchange regime matters by the Community with other States or international organisations; similar (13) Whereas, without prejudice to Community competence and Community agreements as regards economic and monetary union, Member States may negotiate in international bodies and conclude international agreements, et monétaire the CEMAC mique (Communauté économique et monétaire de l’Afrique Centrale) and the Comores. ouest-africaine), Article 2 France and the African signatories to the agreements shall retain sole responsibility for the implementation of these agreements. Article 3 competent French authorities shall keep the The Commission, the European Central Bank and the Economic and Financial Committee informed on a regular basis about the implementation of the agreements. The French authorities shall inform the Economic and the parity Financial Committee prior between the euro and the CFA or Comorian franc. to changes of Article 4 France may negotiate and conclude modifications to the present agreements to the extent that the nature or scope of the agreements are not changed. It shall inform in advance the Commission, the European Central Bank and the Economic and Financial Committee of such changes. Article 5 Any plans to change the nature or scope of these agree- ments shall be submitted by France to the Commission, the European Central Bank and the Economic and Finan- cial Committee. Such plans require the approval of the Council on the basis of a recommendation from the Commission and after consultation of the European Central Bank. Article 6 This Decision shall apply as from 1 January 1999. Article 7 This Decision is addressed to the French Republic. HAS ADOPTED THIS DECISION: Done at Brussels, 23 November 1998. Article 1 Upon the substitution of the euro for the French franc, France may continue its present agreements concerning exchange rate matters with the UEMOA (Union écono- For the Council The President R. EDLINGER