WRITTEN QUESTION No. 136/99 by Antoni GUTIÉRREZ DÍAZ The CFA franc
12. 11. 1999 EN Official Journal of the European Communities C 325/75 Answer given by Mr Fischler on behalf of the Commission (4 March 1999) To supplement the answer already given to Written Question E-3429/98 from the Honourable Member about the financial aspects of the reform of the common organisation of the market in wine as part of the Agenda 2000 package, and in particular in response to his final question about possible support measures for the whisky industry, the Commission would like to state the following: The common organisation of the market in wine as currently in force includes the possibility of granting aid to rationalise the table-wine market through the distillation of surpluses. The existing regime has not modified in any fundamental way the balance among the various products of distillation. In fact, the market share for distilled wine has shrunk somewhat. The draft reform of the wine market organisation is designed to maintain this fundamental balance by supporting a traditional outlet (distilling of wine to alcohol products for human consumption) without which this balance would be compromised. Spirit drinks, however, because they are not listed in Annex II to the EC Treaty, cannot be given direct agricultural support. The Commission wishes to point out, finally, that whisky does qualify for export refunds under the common organisation of the market in cereals. (1999/C 325/095) WRITTEN QUESTION E-0136/99 by Antoni Gutiérrez Díaz (GUE/NGL) to the Commission (11 February 1999) Subject: The CFA franc With the arrival of the euro, the French franc and the French Central Bank will disappear. At the 27th ACP-EU Joint Assembly of 21 to 24 September 1998, a final resolution was adopted on the issue of the euro and the CFA franc, calling on the Commission to study the potential effects of including the CFA franc in the euro. What currency will the CFA franc have in future, and who will control this franc, which is used in all the former French colonies? Which bank will take receipt of and hold payments made by companies importing African products, when the companies concerned are located outside the ACP countries and France? Answer given by Mr de Silguy on behalf of the Commission (10 March 1999) France had concluded a number of exchange rate agreements with the ‘Union économique et monétaire ouest- africaine’ (UEMOA), the ‘Communauté économique et monétaire de l’Afrique Centrale’ (CEMAC) and with the Republic of the Comores. Given that since 1 January 1999, the Community has exclusive competence for exchange rate matters for Member States which have adopted the euro, a Council decision was required to confirm the continuation of the present arrangements concerning the CFA franc and the Comorian franc. Following consultations with Member States, the Commission has on 1 July 1998 adopted a recommendation for a Council decision to confirm the future relations between the euro and the CFA franc and the Comorian franc. Following consultation of the European central bank, the Council has adopted the decision on 23 November 1998. The decision confirms that France may continue its present agreements with the UEMOA, the CEMAC and the Comores. It also stipulates that France and the African signatories to the agreements shall retain sole responsibility for the implementation of these agreements. This implies that the legal status of the CFA franc and the Comorian franc has not been altered by the introduction of the euro and that the central banks of the UEMOA, the CEMAC and the Comores continue to be obliged to hold a part of their foreign assets in their operations accounts with the French Treasury according to the provisions of the agreements