Commission opinion on a recommendation of the European Central Bank for a Council Regulation concerning further calls of foreign reserves assets by the European Central Bank
COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 08. 03. 2000 COM(2000) 124 final COMMISSION OPINION on a recommendation of the European Central Bank for a Council Regulation concerning the limits and conditions for capital increases of the European Central Bank COMMISSION OPINION on a recommendation of the European Central Bank for a Council Regulation concerning further calls of foreign reserves assets by the European Central Bank (presented by the Commission) COMMISSION OPINION on a recommendation of the European Central Bank for a Council Regulation concerning the limits and conditions for capital increases of the European Central Bank In a letter dated 23 February 1999, the Council requested the opinion of the Commission on a recommendation of the European Central Bank (ECB) for a Council Regulation concerning the limits and conditions for capital increases of the ECB. The competence of the Commission to deliver an opinion on this recommendation follows from Article 107(6) of the Treaty in connection with Article 28. 1 of the Statute of the European System of Central Banks and the European Central Bank. On 08. 03. 2000 the Commission has adopted the following opinion: 1. 2. 3. 4. 5. 6. 7. Noting the competing rights of initiative of the Commission and the ECB, the Commission agrees with the initiative taken by the ECB. Given the nature and size of the ECB’s operations, it is justified to enable the ECB to increase its capital when this is deemed necessary by the ECB itself. The recommended limit of € 10,000 million is appropriate. The Commission also agrees that it is neither necessary nor advisable to stipulate conditions for the increase of the capital. However, the Commission considers that the implications of a capital increase for the budgets of Member States should be clarified. Recital No 2 should be redrafted. It is written there that Article 28. 1 of the ESCB Statute “requires” the Council to set limits and conditions for the ECB’s capital increases, whereas the word “requires” is not used in the Statute. Since no conditions are fixed, it would seem appropriate in the title to delete the words “the limits and conditions for”. 2 COMMISSION OPINION on a recommendation of the European Central Bank for a Council Regulation concerning further calls of foreign reserves assets by the European Central Bank In a letter dated 14 October 1999, the Council requested the opinion of the Commission on a recommendation of the European Central Bank (ECB) for a Council Regulation concerning further calls of foreign reserves assets by the ECB. The competence of the Commission to deliver an opinion on this recommendation follows from Article 107(6) of the Treaty in connection with Article 30. 4 of the Statute of the European System of Central Banks and the European Central Bank. On 08. 03. 2000 the Commission has adopted the following opinion: 1. 2. 3. Noting the competing rights of initiative of the Commission and the ECB, the Commission agrees with the initiative taken by the ECB. The Commission supports the doubling of the limit for calls of foreign reserve assets by the ECB to the extent that these further calls serve to replenish holdings of reserve assets up to the initial limit of 50,000 million fixed in the ESCB Statute. € Recital No 2 should be redrafted. It is written there that Article 30. 4 of the ESCB Statute “requires” the Council to specify the limits and conditions for further calls of foreign reserve assets, whereas the word “requires” is not used in the Statute. 3