Did the European Convention have anything to say about issuing euro banknotes and coins, the only legal tender within the euro area?
Article III-78 of the draft Constitution, proposed by the European Convention, corresponds with Article 106 TEC, and it is located in Part III ‘The policies and functioning of the Union’, Title III ‘Internal policies and action’, Chapter II ‘Economic and monetary policy’, Section 2 ‘Monetary policy’.
First, we present the proposed contents. In the draft Treaty establishing a Constitution for Europe, Article III-78 on the issue of euro banknotes and euro coins is found in OJ 18.7.2003 C 169/42:
Article III-78 Draft Constitution
1. The European Central Bank shall have the exclusive right to authorise the issue of euro bank notes in the Union. The European Central Bank and the national central banks may issue such notes. Only the bank notes issued by the European Central Bank and the national central banks shall have the status of legal tender within the Union.
2. Member States may issue euro coins subject to approval by the European Central Bank of the volume of the issue. The Council of Ministers, on a proposal from the Commission, may adopt European regulations laying down measures to harmonise the denominations and technical specifications of all coins intended for circulation to the extent necessary to permit their smooth circulation within the Union. The Council of Ministers shall act after consulting the European Parliament and the European Central Bank.
The next post is going to look at some legal materials concerning the European Convention proposal.