Is it impossible for small companies to win public contracts? Public procurement is generally seen at least as a daunting task for smaller enterprises.
The Small Business Act for Europe was launched by the European Commission 25 June 2008 to lower the hurdles faced by small and medium sized enterprises (SMEs). The aim was neatly put by Commission president José Manuel Barroso: Less red tape and more red carpet.
As the Commission points out, during the last years 80 per cent of the new jobs in the European Union have been created in the 23 milion SMEs (each with less than 250 employees and a turnover of less than 50 million euro).
For a quick presentation of the Small Business Act (SBA), go to the press release “Think Small First”: A Small Business Act for Europe:
http://europa.eu/rapid/pressReleasesAction.do?reference=IP/08/1003&format=HTML&aged=0&language=EN&guiLanguage=en
***
Small Business Act
Officially, the document is the Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions, “Think Small First” A “Small Business Act” for Europe , Brussels, 25.6.2008 COM(2008) 394 final:
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2008:0394:FIN:EN:PDF
***
The aim was to focus the Commission’s own activities and to infuse some small business thinking into the refounded Lisbon Growth and Jobs Strategy, before the member states conclude their next round of national Lisbon strategies.
The Commission calls the term Act symbolic. It could just as well be called misleading, since the SBA is primarily a political programme, with a modicum of related legislative proposals.
This is the wider context for the proposals concerning public contracts.
***
Public procurement proposals
Section V (page 10) encourages the European Union and the member states to make use of the Code of Best Practice providing guidance to contracting authorities on how they may apply the EC public procurement framework in a way which facilitates SMEs’ participation in public procurement procedures.
The Communication acknowledged the obstacles SMEs face when participating in public procurement markets, which account for16% of the EU gross domestic product (GDP). According to the Commission, further significant efforts are needed to reduce the remaining obstacles to SMEs accessing procurement markets, especially by alleviating requirements imposed by contracting authorities in award procedures.
***
Commission actions
The Commission promised to present a voluntary Code of Best Practice for contracting authorities, to trigger further change in the purchasing culture. It would provide guidance on how to reduce bureaucracy, improve transparency and information and ensure a level playing field for SMEs.
The Commission promised to further facilitate access to information on procurement opportunities by complementing the existing EU websites dedicated to public procurement with a series of initiatives such as optional publication of contract notices for below-threshold procurement, an online tool to find business partners, and increased transparency of public procurement requirements
***
Member states’ actions
Electronic procurement portals: The member states were ‘invited to’ set up electronic portals to widen access to information on public procurement opportunities below the EU thresholds.
Smaller lots: The member states could encourage their contracting authorities to subdivide contracts into lots where it is appropriate and to make sub-contracting opportunities more visible.
Reasonable demands: The Commission wanted the member states to remind their contracting authorities of their obligation to avoid disproportionate qualification and financial requirements.
Dialogue and training: The Commission also wanted to encourage constructive dialogue and mutual understanding between SMEs and large buyers through activities such as information, training, monitoring and exchange of good practice.
***
It is important for small businesses and their organisations to keep on the lookout for good practices in Europe, and to keep a watch on the laggards among the member states.
If you have good or deplorable examples of procurement practices in Europe, your comments are most welcome.
Ralf Grahn
Friday, 31 October 2008
European Central Bank IIb: Legal materials on Article III-79 draft Constitution
Having made a textual comparison of the main institutional framework of the European System of Central Banks (ESCB) and the European Central Bank (ECB) in the current Treaty establishing the European Community (TEC) and in the draft Constitution, we turn to some legal materials and descriptions of the proposal of the European Convention in the draft Constitution.
***
de Poncins
Étienne de Poncins presented the proposed text of Article III-78 of the draft Constitution in ‘Vers une Constitution européenne’ (Éditions 10/18, 2003), on page 303─304. His comment leads us to believe that the European Convention really intended the European Parliament to participate fully in the simplified revision procedures mentioned in paragraph 5:
« Commentaire : le paragraphe 5 autorise la modification du statut de la Banque centrale européenne. Actuellement cette législation requiert l’unanimité du Conseil et l’avis conforme du Parlement européen. La procédure législative sera d’application, le Conseil se prononçant à la majorité qualifié. »
***
Sweden
Sweden remains outside the third phase of economic and monetary union (EMU), without an opt-out, but following the 14 September 2003 referendum. Still, the normal EU/EC institutions operate, in case of simplified revisions of the ESCB Statute or complementary legislation according to Article 42 of the Statute, which means that the member states with a derogation participate in the Council. In principle, these member states are seen as future participants in the Eurosystem.
I found no mention of Article III-79 in the Swedish government’s memorandum on the draft Constitution, ‘Europeiska konventet om EU:s framtid’ (Utrikesdepartementet, Departementsserien (Ds) 2003:58, 2003).
***
Sweden
Ahead of the intergovernmental conference (IGC 2003─2004), but after the euro referendum, the government of Sweden made a reference to technical the participation of the European Parliament in certain matters pertaining to the ESCB Statute, in ‘Europeiska konventet om EU:s framtid’ (Regeringens skrivelse 2003/04:13, den 2 oktober 2003), on page 49 (in the last quoted sentence):
”Europeiska centralbankens tillsynsbefogenheter och stadgar
Konventet föreslår att beslutsregeln för överföring av tillsynsbefogenheter för den finansiella sektorn till Europeiska centralbanken (ECB) skall ändras. I dag krävs enhällighet i rådet och samtycke av Europaparlamentet. Förslaget innebär att rådet skall besluta med kvalificerad majoritet och att Europaparlamentet skall ges medbeslutande för en sådan överföring. Vidare föreslås att Europaparlamentet ges medbeslutande beträffande vissa frågor i stadgan för Europeiska centralbankssystemet.”
The Swedish government admitted the reasons for functioning decision-making within the eurozone and the interest of euro area members to effective representation in international financial institutions, but in between the government expressed its will to be included in the coordination processes generally (on page 50):
”Det kan finnas skäl för euroländerna att på olika sätt säkerställa ett väl fungerande beslutsfattande i euroområdet. Det är dock viktigt att samordningsprocesserna behåller sin gemensamma karaktär. Det är också förståeligt att euroländerna vill uppnå en effektiv representation av euroområdet i internationella finansiella institutioner.”
***
United Kingdom
The United Kingdom has opted out of the third stage of economic and monetary union (EMU). (In the latest consolidated version of the treaties, Protocol (No 25) on certain provisions relating to the United Kingdom of Great Britain and Northern Ireland, OJ 29.12.2006 C 321 E/299).
Between the European Convention and the intergovernmental conference, the UK government presented its general approach ─ most British ─ in ‘A Constitutional Treaty for the EU; The British Approach to the European Union Intergovernmental Conference 2003’ (Cm5934, September 2003), under Economic Governance on pages 34─35:
“74. Many of the issues discussed in the European Convention and raised in the draft Constitutional Treaty could have significant consequences for the future performance of EU economies. The draft Constitutional Treaty proposed by the Convention has proposed changes to the EU’s existing system of economic governance and other aspects of the EU fiscal framework; the institutional balance between the Union and Member States in economic policy coordination; and the role of the Eurogroup, the informal grouping of euro area finance ministers. The Government will oppose any such proposals which might lead to unnecessary rigidities or undermine the central role of Member States in determining their economic policies. It will work to ensure outcomes that will bolster stability, promote flexibility and enhance the ability of European countries to raise productivity and employment levels.
75. The draft Treaty does not alter the terms of the UK’s Economic and Monetary Union protocol (allowing the UK to decide whether or not to join the euro). This will need formally to be re-adopted on the conclusion of the IGC.”
***
Finland
Finland is part of Euroland.
The Finnish government, in ‘Valtioneuvoston selonteko Eduskunnalle konventin tuloksista ja valmistautumisesta hallitusten väliseen konferenssiin’ (VNS 2/2003 vp), mentioned the adoption of the (normal) legislative procedure concerning amendments to certain Articles of the ESCB Statute in draft Constitution Article III-79. The Finnish government remarked on the proposal to extend qualified majority voting in the Council of Ministers to amendments proposed by the Commission, not only the ECB. This had raised fears of weakening the position of the central bank, and the Finnish Convention delegates had resisted this amendment (page 66):
”Perustuslaillisella sopimuksella muutetaan myös joitakin päätöksentekomenettelyjä talous- ja rahapolitiikan alalla. Lainsäädäntömenettely ulotetaan kattamaan myös rahoituslaitosten valvontaa koskevien erityistehtävien siirtäminen EKP:lle (III-77 artikla) sekä EKP-järjestelmän perussäännön tiettyjen artiklojen muuttaminen (III-79 artikla). EKP:lle voidaan normaalia lainsäädäntömenettelyä noudattaen antaa erityistehtäviä jotka koskevat luottolaitosten sekä muiden rahoituslaitosten kuin vakuutusyritysten toiminnan vakauden valvontaa. Nykysopimuksessa tämä edellyttää neuvostossa yksimielisyyttä. Suomen taholta ei yhdistetyn valvontavastuun tavoittelua unionissa ole pidetty tarkoituksenmukaisena, koska kyse on erittäin herkkäluonteisista kysymyksistä joilla on myös taloudellisia vaikutuksia. EKP:n keskuspankin perussääntöä voidaan puolestaan jatkossa muuttaa ministerineuvostossa määräenemmistöllä myös komission, ei vain EKP:n aloitteesta. Tämän on pelätty heikentävän keskuspankin asemaa. Suomen edustajat konventissa vastustivatkin näitä muutoksia.”
***
The attentive reader, with an eye for detail, may have noticed that my initial text comparison did not bring all the aspects to the fore. Neither did the researched documents individually, but using several sources gives us a fuller picture of the Article studied.
We will follow the Article III-79 proposed by the European Convention as it reappears after the intergovernmental conferences leading to the signing of the Constitutional Treaty and the Treaty of Lisbon.
.
Ralf Grahn
***
de Poncins
Étienne de Poncins presented the proposed text of Article III-78 of the draft Constitution in ‘Vers une Constitution européenne’ (Éditions 10/18, 2003), on page 303─304. His comment leads us to believe that the European Convention really intended the European Parliament to participate fully in the simplified revision procedures mentioned in paragraph 5:
« Commentaire : le paragraphe 5 autorise la modification du statut de la Banque centrale européenne. Actuellement cette législation requiert l’unanimité du Conseil et l’avis conforme du Parlement européen. La procédure législative sera d’application, le Conseil se prononçant à la majorité qualifié. »
***
Sweden
Sweden remains outside the third phase of economic and monetary union (EMU), without an opt-out, but following the 14 September 2003 referendum. Still, the normal EU/EC institutions operate, in case of simplified revisions of the ESCB Statute or complementary legislation according to Article 42 of the Statute, which means that the member states with a derogation participate in the Council. In principle, these member states are seen as future participants in the Eurosystem.
I found no mention of Article III-79 in the Swedish government’s memorandum on the draft Constitution, ‘Europeiska konventet om EU:s framtid’ (Utrikesdepartementet, Departementsserien (Ds) 2003:58, 2003).
***
Sweden
Ahead of the intergovernmental conference (IGC 2003─2004), but after the euro referendum, the government of Sweden made a reference to technical the participation of the European Parliament in certain matters pertaining to the ESCB Statute, in ‘Europeiska konventet om EU:s framtid’ (Regeringens skrivelse 2003/04:13, den 2 oktober 2003), on page 49 (in the last quoted sentence):
”Europeiska centralbankens tillsynsbefogenheter och stadgar
Konventet föreslår att beslutsregeln för överföring av tillsynsbefogenheter för den finansiella sektorn till Europeiska centralbanken (ECB) skall ändras. I dag krävs enhällighet i rådet och samtycke av Europaparlamentet. Förslaget innebär att rådet skall besluta med kvalificerad majoritet och att Europaparlamentet skall ges medbeslutande för en sådan överföring. Vidare föreslås att Europaparlamentet ges medbeslutande beträffande vissa frågor i stadgan för Europeiska centralbankssystemet.”
The Swedish government admitted the reasons for functioning decision-making within the eurozone and the interest of euro area members to effective representation in international financial institutions, but in between the government expressed its will to be included in the coordination processes generally (on page 50):
”Det kan finnas skäl för euroländerna att på olika sätt säkerställa ett väl fungerande beslutsfattande i euroområdet. Det är dock viktigt att samordningsprocesserna behåller sin gemensamma karaktär. Det är också förståeligt att euroländerna vill uppnå en effektiv representation av euroområdet i internationella finansiella institutioner.”
***
United Kingdom
The United Kingdom has opted out of the third stage of economic and monetary union (EMU). (In the latest consolidated version of the treaties, Protocol (No 25) on certain provisions relating to the United Kingdom of Great Britain and Northern Ireland, OJ 29.12.2006 C 321 E/299).
Between the European Convention and the intergovernmental conference, the UK government presented its general approach ─ most British ─ in ‘A Constitutional Treaty for the EU; The British Approach to the European Union Intergovernmental Conference 2003’ (Cm5934, September 2003), under Economic Governance on pages 34─35:
“74. Many of the issues discussed in the European Convention and raised in the draft Constitutional Treaty could have significant consequences for the future performance of EU economies. The draft Constitutional Treaty proposed by the Convention has proposed changes to the EU’s existing system of economic governance and other aspects of the EU fiscal framework; the institutional balance between the Union and Member States in economic policy coordination; and the role of the Eurogroup, the informal grouping of euro area finance ministers. The Government will oppose any such proposals which might lead to unnecessary rigidities or undermine the central role of Member States in determining their economic policies. It will work to ensure outcomes that will bolster stability, promote flexibility and enhance the ability of European countries to raise productivity and employment levels.
75. The draft Treaty does not alter the terms of the UK’s Economic and Monetary Union protocol (allowing the UK to decide whether or not to join the euro). This will need formally to be re-adopted on the conclusion of the IGC.”
***
Finland
Finland is part of Euroland.
The Finnish government, in ‘Valtioneuvoston selonteko Eduskunnalle konventin tuloksista ja valmistautumisesta hallitusten väliseen konferenssiin’ (VNS 2/2003 vp), mentioned the adoption of the (normal) legislative procedure concerning amendments to certain Articles of the ESCB Statute in draft Constitution Article III-79. The Finnish government remarked on the proposal to extend qualified majority voting in the Council of Ministers to amendments proposed by the Commission, not only the ECB. This had raised fears of weakening the position of the central bank, and the Finnish Convention delegates had resisted this amendment (page 66):
”Perustuslaillisella sopimuksella muutetaan myös joitakin päätöksentekomenettelyjä talous- ja rahapolitiikan alalla. Lainsäädäntömenettely ulotetaan kattamaan myös rahoituslaitosten valvontaa koskevien erityistehtävien siirtäminen EKP:lle (III-77 artikla) sekä EKP-järjestelmän perussäännön tiettyjen artiklojen muuttaminen (III-79 artikla). EKP:lle voidaan normaalia lainsäädäntömenettelyä noudattaen antaa erityistehtäviä jotka koskevat luottolaitosten sekä muiden rahoituslaitosten kuin vakuutusyritysten toiminnan vakauden valvontaa. Nykysopimuksessa tämä edellyttää neuvostossa yksimielisyyttä. Suomen taholta ei yhdistetyn valvontavastuun tavoittelua unionissa ole pidetty tarkoituksenmukaisena, koska kyse on erittäin herkkäluonteisista kysymyksistä joilla on myös taloudellisia vaikutuksia. EKP:n keskuspankin perussääntöä voidaan puolestaan jatkossa muuttaa ministerineuvostossa määräenemmistöllä myös komission, ei vain EKP:n aloitteesta. Tämän on pelätty heikentävän keskuspankin asemaa. Suomen edustajat konventissa vastustivatkin näitä muutoksia.”
***
The attentive reader, with an eye for detail, may have noticed that my initial text comparison did not bring all the aspects to the fore. Neither did the researched documents individually, but using several sources gives us a fuller picture of the Article studied.
We will follow the Article III-79 proposed by the European Convention as it reappears after the intergovernmental conferences leading to the signing of the Constitutional Treaty and the Treaty of Lisbon.
.
Ralf Grahn
European Central Bank IIa: Article III-79 draft Constitution
The European System of Central Banks (ESCB) and the European Central Bank (ECB) were part of the all-encompassing draft Treaty establishing a Constitution for Europe.
But did the European Convention propose any material or stylistic change to the existing provisions?
We look at the contents of the institutional basics in draft Constitution Article III-79.
***
Article III-79 of the draft Constitution, proposed by the European Convention, corresponds with Article 107 of the Treaty establishing the European Community (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’.
Article III-79 draft Treaty establishing a Constitution for Europe is found in OJ 18.7.2003 C 169/42─43:
Article III-79 Draft Constitution
1. The European System of Central Banks shall be composed of the European Central Bank and of the national central banks.
2. The European Central Bank shall have legal personality.
3. The European System of Central Banks shall be governed by the decision-making bodies of the European Central Bank, which shall be the Governing Council and the Executive Board.
4. The Statute of the European System of Central Banks is laid down in the Protocol on the Statute of the European System of Central Banks and the European Central Bank.
5. Articles 5.1, 5.2, 5.3, 17, 18, 19.1, 22, 23, 24, 26, 32.2, 32.3, 32.4, 32.6, 33.1(a) and 36 of the Statute of the European System of Central Banks and the European Central Bank may be amended by European laws:
(a) either on a proposal from the Commission after consultation of the European Central Bank;
(b) or on a recommendation from the European Central Bank after consultation of the Commission.
6. The Council of Ministers shall adopt the European regulations and decisions laying down the measures referred to in Articles 4, 5.4, 19.2, 20, 28.1, 29.2, 30.4 and 34.3 of the Statute of the System of European Central Banks and the European Central Bank. It shall act after consulting the European Parliament:
(a) either on a proposal from the Commission after consulting the European Central Bank;
(b) or on a recommendation from the European Central Bank after consulting the Commission.
***
Texts compared
The following differences can be noted between the current Article 107 TEC and Article III-79 draft Constitution:
The draft Constitution spells out the acronyms ESCB and ECB in full, for ease of reading.
In paragraph 4, the draft Constitution defined more exactly in which Protocol the ESCB Statute lay hidden; namely ‘the Protocol on the Statute of the European System of Central Banks and the European Central Bank’.
In paragraph 5, the simplified revision of certain provisions of the ESCB Statute referred to the existing Articles. This left the detailed work to the coming intergovernmental conference, if changes to the Statute were to be made. The Convention, preoccupied by the main institutional building-blocks of the European Union, left only a rudimentary collection of eight draft protocols and declarations in all.
The legal instruments to be used were defined as European laws. The two-pronged approach, either a recommendation from the ECB or a proposal from the Commission, was maintained, although they were mentioned in reverse order. No mention was made of the European Parliament, whereas the assent of the EP is required currently. On the other hand, paragraph 5 did not say that the Statute amendments were to be adopted by the Council (alone).
Was it a slip to drop the words ‘by the Council’, or did the Convention really mean to introduce the ordinary legislative procedure (European laws, with no qualification) for these enumerated simplified changes to the ESCB Statute?
On the other hand, although the potential scope for changes looked insignificant, when we studied Article 107(5) TEC, the ESCB Statute is, in principle, a treaty level document, so any exemption to normal treaty amending procedures (IGC and ratifications) might be seen as a serious matter.
The more important complementary legislation in paragraph 6 was re-written in the same manner as the preceding paragraph, but here the European regulations and decisions were to be adopted by the Council of Ministers, after consulting the European Parliament (as currently).
***
The next post is going to look at some legal materials concerning the European Convention proposal. With luck, we might even find an answer to the baffling legislative ‘minutiae’ mentioned above.
Ralf Grahn
But did the European Convention propose any material or stylistic change to the existing provisions?
We look at the contents of the institutional basics in draft Constitution Article III-79.
***
Article III-79 of the draft Constitution, proposed by the European Convention, corresponds with Article 107 of the Treaty establishing the European Community (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’.
Article III-79 draft Treaty establishing a Constitution for Europe is found in OJ 18.7.2003 C 169/42─43:
Article III-79 Draft Constitution
1. The European System of Central Banks shall be composed of the European Central Bank and of the national central banks.
2. The European Central Bank shall have legal personality.
3. The European System of Central Banks shall be governed by the decision-making bodies of the European Central Bank, which shall be the Governing Council and the Executive Board.
4. The Statute of the European System of Central Banks is laid down in the Protocol on the Statute of the European System of Central Banks and the European Central Bank.
5. Articles 5.1, 5.2, 5.3, 17, 18, 19.1, 22, 23, 24, 26, 32.2, 32.3, 32.4, 32.6, 33.1(a) and 36 of the Statute of the European System of Central Banks and the European Central Bank may be amended by European laws:
(a) either on a proposal from the Commission after consultation of the European Central Bank;
(b) or on a recommendation from the European Central Bank after consultation of the Commission.
6. The Council of Ministers shall adopt the European regulations and decisions laying down the measures referred to in Articles 4, 5.4, 19.2, 20, 28.1, 29.2, 30.4 and 34.3 of the Statute of the System of European Central Banks and the European Central Bank. It shall act after consulting the European Parliament:
(a) either on a proposal from the Commission after consulting the European Central Bank;
(b) or on a recommendation from the European Central Bank after consulting the Commission.
***
Texts compared
The following differences can be noted between the current Article 107 TEC and Article III-79 draft Constitution:
The draft Constitution spells out the acronyms ESCB and ECB in full, for ease of reading.
In paragraph 4, the draft Constitution defined more exactly in which Protocol the ESCB Statute lay hidden; namely ‘the Protocol on the Statute of the European System of Central Banks and the European Central Bank’.
In paragraph 5, the simplified revision of certain provisions of the ESCB Statute referred to the existing Articles. This left the detailed work to the coming intergovernmental conference, if changes to the Statute were to be made. The Convention, preoccupied by the main institutional building-blocks of the European Union, left only a rudimentary collection of eight draft protocols and declarations in all.
The legal instruments to be used were defined as European laws. The two-pronged approach, either a recommendation from the ECB or a proposal from the Commission, was maintained, although they were mentioned in reverse order. No mention was made of the European Parliament, whereas the assent of the EP is required currently. On the other hand, paragraph 5 did not say that the Statute amendments were to be adopted by the Council (alone).
Was it a slip to drop the words ‘by the Council’, or did the Convention really mean to introduce the ordinary legislative procedure (European laws, with no qualification) for these enumerated simplified changes to the ESCB Statute?
On the other hand, although the potential scope for changes looked insignificant, when we studied Article 107(5) TEC, the ESCB Statute is, in principle, a treaty level document, so any exemption to normal treaty amending procedures (IGC and ratifications) might be seen as a serious matter.
The more important complementary legislation in paragraph 6 was re-written in the same manner as the preceding paragraph, but here the European regulations and decisions were to be adopted by the Council of Ministers, after consulting the European Parliament (as currently).
***
The next post is going to look at some legal materials concerning the European Convention proposal. With luck, we might even find an answer to the baffling legislative ‘minutiae’ mentioned above.
Ralf Grahn
Thursday, 30 October 2008
European Central Bank Ih: Complementary ECB legislation
The European Central Bank (ECB) is operationally independent, within the limits of the treaty and the statute, but especially in matters concerning the member states, the national central banks or outside operators, certain additional parameters are subject to outside political control, with the Council as decision-maker.
We look at the system for complementary ECB legislation.
***
Article 107(6) of the Treaty establishing the European Community (TEC), in the latest consolidated version of the treaties, OJ 29.12.2006 C 321 E/88, provides the legal base for certain provisions referred to in the ESCB Statute:
Article 107(6) TEC
6. The Council, acting by a qualified majority either on a proposal from the Commission and after consulting the European Parliament and the ECB or on a recommendation from the ECB and after consulting the European Parliament and the Commission, shall adopt the provisions referred to in Articles 4, 5.4, 19.2, 20, 28.1, 29.2, 30.4 and 34.3 of the Statute of the ESCB.
***
Protocol (No 18) on the Statute of the European System of Central Banks and of the European Central Bank (annexed to the latest consolidated version of the current treaties, OJ 29.12.2006 C 321 E/256─280) contains the Articles referred to.
Article 4 ESCB Statute concerns the mandatory consultation of the European Central Bank on any proposed Community act in its fields of competence and by national authorities regarding any draft legislative provision in its fields of competence.
Article 42 ESCB Statute gave the Council an obligation to act:
Article 42 ESCB Statute
Complementary legislation
In accordance with Article 107(6) of this Treaty, immediately after the decision on the date for the beginning of the third stage, the Council, acting by a qualified majority either on a proposal from the Commission and after consulting the European Parliament and the ECB or on a recommendation from the ECB and after consulting the European Parliament and the Commission, shall adopt the provisions referred to in Articles 4, 5.4, 19.2, 20, 28.1, 29.2, 30.4 and 34.3 of this Statute.
Pursuant to ESCB Statute Article 5.4, the Council, in accordance with the procedure laid down in Article 42, shall define the natural and legal persons subject to reporting requirements, the confidentiality regime and the appropriate provisions for enforcement.
According to ESCB Statute Article 19.2 the Council shall, in accordance with the procedure laid down in Article 42, define the basis for minimum reserves and the maximum permissible ratios between those reserves and their basis, as well as the appropriate sanctions in cases of noncompliance.
Article 20 ESCB Statute gives the ECB Governing Council the right to decide, by a majority of two thirds of the votes cast, upon the use of such other operational methods of monetary control as it sees fit, but within the scope of such methods defined by the Council, if they impose obligations on third parties.
Article 28.1 ESCB Statute concerns the capital of the ECB. Initially it was set at ECU (later euro) 5 000 million, but subject to later increases by such amounts as may be decided by the
Governing Council acting by the qualified majority provided for in Article 10.3, within the limits
and under the conditions set by the Council under the procedure laid down in Article 42.
ESCB Statute Article 29.2 regards the statistical data used to determine the ECB capital key subscription. The data shall be provided by the Commission in accordance with the rules adopted by the Council under the procedure provided for in Article 42.
Article 30.4 ESCB Statute provides for the possible transfer of additional foreign reserve assets from national central banks to the European Central Bank, within the limits and under the conditions set by the Council in accordance with the procedure laid down in Article 42.
Article 34.3 ESCB Statute provides for the Council to set the limits and the conditions of the fines and periodic penalty payments the ECB is entitled to impose on undertakings for failure to comply with obligations under its regulations and decisions.
***
At this stage, I leave it to the interested reader to look for the concrete Council Decisions and Regulations implementing ESCB Statute Article 42.
Ralf Grahn
We look at the system for complementary ECB legislation.
***
Article 107(6) of the Treaty establishing the European Community (TEC), in the latest consolidated version of the treaties, OJ 29.12.2006 C 321 E/88, provides the legal base for certain provisions referred to in the ESCB Statute:
Article 107(6) TEC
6. The Council, acting by a qualified majority either on a proposal from the Commission and after consulting the European Parliament and the ECB or on a recommendation from the ECB and after consulting the European Parliament and the Commission, shall adopt the provisions referred to in Articles 4, 5.4, 19.2, 20, 28.1, 29.2, 30.4 and 34.3 of the Statute of the ESCB.
***
Protocol (No 18) on the Statute of the European System of Central Banks and of the European Central Bank (annexed to the latest consolidated version of the current treaties, OJ 29.12.2006 C 321 E/256─280) contains the Articles referred to.
Article 4 ESCB Statute concerns the mandatory consultation of the European Central Bank on any proposed Community act in its fields of competence and by national authorities regarding any draft legislative provision in its fields of competence.
Article 42 ESCB Statute gave the Council an obligation to act:
Article 42 ESCB Statute
Complementary legislation
In accordance with Article 107(6) of this Treaty, immediately after the decision on the date for the beginning of the third stage, the Council, acting by a qualified majority either on a proposal from the Commission and after consulting the European Parliament and the ECB or on a recommendation from the ECB and after consulting the European Parliament and the Commission, shall adopt the provisions referred to in Articles 4, 5.4, 19.2, 20, 28.1, 29.2, 30.4 and 34.3 of this Statute.
Pursuant to ESCB Statute Article 5.4, the Council, in accordance with the procedure laid down in Article 42, shall define the natural and legal persons subject to reporting requirements, the confidentiality regime and the appropriate provisions for enforcement.
According to ESCB Statute Article 19.2 the Council shall, in accordance with the procedure laid down in Article 42, define the basis for minimum reserves and the maximum permissible ratios between those reserves and their basis, as well as the appropriate sanctions in cases of noncompliance.
Article 20 ESCB Statute gives the ECB Governing Council the right to decide, by a majority of two thirds of the votes cast, upon the use of such other operational methods of monetary control as it sees fit, but within the scope of such methods defined by the Council, if they impose obligations on third parties.
Article 28.1 ESCB Statute concerns the capital of the ECB. Initially it was set at ECU (later euro) 5 000 million, but subject to later increases by such amounts as may be decided by the
Governing Council acting by the qualified majority provided for in Article 10.3, within the limits
and under the conditions set by the Council under the procedure laid down in Article 42.
ESCB Statute Article 29.2 regards the statistical data used to determine the ECB capital key subscription. The data shall be provided by the Commission in accordance with the rules adopted by the Council under the procedure provided for in Article 42.
Article 30.4 ESCB Statute provides for the possible transfer of additional foreign reserve assets from national central banks to the European Central Bank, within the limits and under the conditions set by the Council in accordance with the procedure laid down in Article 42.
Article 34.3 ESCB Statute provides for the Council to set the limits and the conditions of the fines and periodic penalty payments the ECB is entitled to impose on undertakings for failure to comply with obligations under its regulations and decisions.
***
At this stage, I leave it to the interested reader to look for the concrete Council Decisions and Regulations implementing ESCB Statute Article 42.
Ralf Grahn
Public procurement in Sweden
Internal market rules are applied to public procurement in the EU member states through European Community directives, transposed into national law.
But how single is the Single Market, if you are a European or international firm and you want to do business in one of the member states of the European Union?
You may even want to supply goods or services to central, regional or local government.
We look at the procurement legislation in Sweden, with a view to the information available to foreign suppliers in English.
***
The European Community directives are the foundation, and naturally they are available in English.
The so called Classic Directive:
Directive 2004/18/EC of the European Parliament and of the Council of 31 March 2004 on the coordination of procedures for the award of public works contracts, public supply contracts and public service contracts (OJ 30.4.2004 L 134/114), since amended. This is a link to the consolidated version:
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CONSLEG:2004L0018:20080101:EN:PDF
The so called Utilities Directive:
Directive 2004/17/EC of the European Parliament and of the Council of 31 March 2004 coordinating the procurement procedures of entities operating in the water, energy, transport and postal services sectors (OJ 30.4.2004 L 134/1) has been amended a few times, so this is a link to the consolidated version:
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CONSLEG:2004L0017:20080101:EN:PDF
***
Preparing transposition in Sweden
When the Swedish Government got around to transposing the EC Directives, it presented a massive Bill to the Parliament. The main proposal runs to 570 pages:
Regeringens proposition 2006/07:128 Ny lagstiftning om offentlig upphandling och upphandling inom områdena vatten, energi, transporter och posttjänster:
http://www.regeringen.se/content/1/c6/08/43/76/9cb61697.pdf
The Government Bill was accompanied by two sets of Annexes.
Annexes 1 – 6 (373 pages):
http://www.regeringen.se/content/1/c6/08/43/76/c6856bc3.pdf
Annexes 7 – 15 (280 pages):
http://www.regeringen.se/content/1/c6/08/43/76/1aa64eec.pdf
***
Two statutes
The new Swedish procurement legislation consists of two main Acts, in force from 1 January 2008.
Lag om offentlig upphandling (Swedish Public Procurements Act)
The Act transposing the Classic Directive 2004/18/EC is called Lag (2007:1091) om offentlig upphandling (abbreviated LOU)
***
Försörjningslagen
Lag (2007:1092) om områdena vatten, energi, transporter och posttjänster (colloquially Försörjningslagen) transposes the Utilities Directive 2004/17/EC.
Current Swedish legislation can be accessed through (in Swedish):
www.lagrummet.se
***
Translations?
The Swedish Government offers some unofficial translations of legal acts on a web page called Swedish statutes in translation, with links to a dozen legal areas, but I was unable to find any translation of the procurement acts there:
http://www.sweden.gov.se/sb/d/3288
***
Swedish Competition Authority
The Swedish Competition Authority (Konkurrensverket) is responsible for improving competition and, since 1 September 2007, for supervising public procurement. It offers some basic information, news and publications in English:
http://www.kkv.se/default____218.aspx
Last year, the Competition Authority published The Strategy of the Swedish Competition Authority and its Direction for Procurement Issues (30 pages), where it set out its main goals to enhance competition in public procurement:
http://www.kkv.se/upload/Filer/ENG/Publications/strategidok_eng.pdf
The main public procurement aims of the Swedish Competition Authority are the following:
procuring entities being aware of their options regarding procurement and that they avoid violating the Swedish Public Procurements Act,
the competitive sector of the Swedish economy grows and the competitive solutions are applied to an increased extent in the public sector,
suppliers have the opportunity and want to take part in procurements,
Swedish consumers, procuring entities and suppliers know about the significance of competition for a varied selection goods and services of good quality at reasonable prices.
By the way, there is an unofficial Swedish translation of the Swedish Competition Act (but I found no translation of the procurement acts):
http://www.kkv.se/upload/Filer/ENG/Publications/compact_eng.pdf
***
State procurement
The Swedish state coordinates its purchasing activities. For some information in English, go to Statlig inköpssammordning, Coordination of government procurement:
http://www.avropa.nu/templates/Page____9.aspx
There is a short presentation of the coordinating body, the Swedish Financial Management Aurhority (Ekonomistyrningsverket) on:
http://www.avropa.nu/upload/Dokument/Yttranden,%20rapporter,%20pm/In%20English.pdf
***
Sveriges offentliga inköpare SOI
Sveriges Offentliga Inköpare SOI is an association for about 1,100 purchasing professionals, but the information is available only in Swedish:
http://www.soi.se/
***
Swedish National Board of Trade
Kommerskollegium (the Swedish National Board of Trade) is the Swedish governmental agency dealing with foreign trade and trade policy. Its main areas of activity are related to the European Community:
The Internal Market
The Customs Union
External Trade policy
The web pages offer a fair amount of basic information in English. For more, go to:
http://www.kommers.se/templates/Standard____3127.aspx
The National Board of Trade is a partner in the SOLVIT network.
***
Green public procurement
Three public procurement themes are the darlings of politicians. One is the participation of small and medium sized enterprises (SMEs), the second is e-procurement and the third one is green public procurement.
Sweden would not be Sweden without green procurement cropping up. Naturvårdsverket (the Swedish Environmental Protection Agency) offers a point of departure on its page More and more public bodies in Sweden have guidelines on green procurement:
http://www.naturvardsverket.se/en/In-English/Menu/Climate-change/Swedish-News-on-Climate-Change/More-and-more-public-bodies-in-Sweden-have-guidelines-on-green-procurement/
***
Upphandling24
Upphandling24 is a commercial website in Swedish, dedicated to public procurement news and information:
http://upphandling24.idg.se/
***
Confederation of Swedish Enterprise
Svenskt Näringsliv (the Confederation of Swedish Enterprise) lobbies for more open public markets. The information is in Swedish:
http://www.svensktnaringsliv.se/fragor/offentlig_upphandling/article15121.ece
***
Local Authorities and Regions
For the members of Sveriges Kommuner och Landsting (the Swedish Association of Local Authorities and Regions, SALAR) the complicated procurement legislation is a constant headache, which results in demands for simplification and continuous monitoring of new proposals and decisions (in Swedish):
http://www.skl.se
***
Freedom of choice
The Swedish Competition Authority has a page in English ‘New rules pave the way for freedom of choice’ on a new government proposal. The law, due to come into force on 1 January 2009, regulates how municipalities and county councils are to proceed if they decide to introduce a freedom-of-choice system in their care services:
http://www.konkurrensverket.se/t/NewsPage____3987.aspx
The Government Bill, Regeringens proposition 2008/09:29 Lag om valfrihetssystem, is available in Swedish:
http://www.regeringen.se/content/1/c6/11/25/56/e7303623.pdf
***
It is hard to penetrate new markets, especially outside one’s own home country, and public procurement adds its own twist.
The language barriers within the internal market are formidable, and in Sweden the available official information in English can be described as basic. But generally Swedish officials are helpful and English is almost a second language to them, so once you get the ball rolling, you have every chance of success.
Ralf Grahn
But how single is the Single Market, if you are a European or international firm and you want to do business in one of the member states of the European Union?
You may even want to supply goods or services to central, regional or local government.
We look at the procurement legislation in Sweden, with a view to the information available to foreign suppliers in English.
***
The European Community directives are the foundation, and naturally they are available in English.
The so called Classic Directive:
Directive 2004/18/EC of the European Parliament and of the Council of 31 March 2004 on the coordination of procedures for the award of public works contracts, public supply contracts and public service contracts (OJ 30.4.2004 L 134/114), since amended. This is a link to the consolidated version:
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CONSLEG:2004L0018:20080101:EN:PDF
The so called Utilities Directive:
Directive 2004/17/EC of the European Parliament and of the Council of 31 March 2004 coordinating the procurement procedures of entities operating in the water, energy, transport and postal services sectors (OJ 30.4.2004 L 134/1) has been amended a few times, so this is a link to the consolidated version:
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CONSLEG:2004L0017:20080101:EN:PDF
***
Preparing transposition in Sweden
When the Swedish Government got around to transposing the EC Directives, it presented a massive Bill to the Parliament. The main proposal runs to 570 pages:
Regeringens proposition 2006/07:128 Ny lagstiftning om offentlig upphandling och upphandling inom områdena vatten, energi, transporter och posttjänster:
http://www.regeringen.se/content/1/c6/08/43/76/9cb61697.pdf
The Government Bill was accompanied by two sets of Annexes.
Annexes 1 – 6 (373 pages):
http://www.regeringen.se/content/1/c6/08/43/76/c6856bc3.pdf
Annexes 7 – 15 (280 pages):
http://www.regeringen.se/content/1/c6/08/43/76/1aa64eec.pdf
***
Two statutes
The new Swedish procurement legislation consists of two main Acts, in force from 1 January 2008.
Lag om offentlig upphandling (Swedish Public Procurements Act)
The Act transposing the Classic Directive 2004/18/EC is called Lag (2007:1091) om offentlig upphandling (abbreviated LOU)
***
Försörjningslagen
Lag (2007:1092) om områdena vatten, energi, transporter och posttjänster (colloquially Försörjningslagen) transposes the Utilities Directive 2004/17/EC.
Current Swedish legislation can be accessed through (in Swedish):
www.lagrummet.se
***
Translations?
The Swedish Government offers some unofficial translations of legal acts on a web page called Swedish statutes in translation, with links to a dozen legal areas, but I was unable to find any translation of the procurement acts there:
http://www.sweden.gov.se/sb/d/3288
***
Swedish Competition Authority
The Swedish Competition Authority (Konkurrensverket) is responsible for improving competition and, since 1 September 2007, for supervising public procurement. It offers some basic information, news and publications in English:
http://www.kkv.se/default____218.aspx
Last year, the Competition Authority published The Strategy of the Swedish Competition Authority and its Direction for Procurement Issues (30 pages), where it set out its main goals to enhance competition in public procurement:
http://www.kkv.se/upload/Filer/ENG/Publications/strategidok_eng.pdf
The main public procurement aims of the Swedish Competition Authority are the following:
procuring entities being aware of their options regarding procurement and that they avoid violating the Swedish Public Procurements Act,
the competitive sector of the Swedish economy grows and the competitive solutions are applied to an increased extent in the public sector,
suppliers have the opportunity and want to take part in procurements,
Swedish consumers, procuring entities and suppliers know about the significance of competition for a varied selection goods and services of good quality at reasonable prices.
By the way, there is an unofficial Swedish translation of the Swedish Competition Act (but I found no translation of the procurement acts):
http://www.kkv.se/upload/Filer/ENG/Publications/compact_eng.pdf
***
State procurement
The Swedish state coordinates its purchasing activities. For some information in English, go to Statlig inköpssammordning, Coordination of government procurement:
http://www.avropa.nu/templates/Page____9.aspx
There is a short presentation of the coordinating body, the Swedish Financial Management Aurhority (Ekonomistyrningsverket) on:
http://www.avropa.nu/upload/Dokument/Yttranden,%20rapporter,%20pm/In%20English.pdf
***
Sveriges offentliga inköpare SOI
Sveriges Offentliga Inköpare SOI is an association for about 1,100 purchasing professionals, but the information is available only in Swedish:
http://www.soi.se/
***
Swedish National Board of Trade
Kommerskollegium (the Swedish National Board of Trade) is the Swedish governmental agency dealing with foreign trade and trade policy. Its main areas of activity are related to the European Community:
The Internal Market
The Customs Union
External Trade policy
The web pages offer a fair amount of basic information in English. For more, go to:
http://www.kommers.se/templates/Standard____3127.aspx
The National Board of Trade is a partner in the SOLVIT network.
***
Green public procurement
Three public procurement themes are the darlings of politicians. One is the participation of small and medium sized enterprises (SMEs), the second is e-procurement and the third one is green public procurement.
Sweden would not be Sweden without green procurement cropping up. Naturvårdsverket (the Swedish Environmental Protection Agency) offers a point of departure on its page More and more public bodies in Sweden have guidelines on green procurement:
http://www.naturvardsverket.se/en/In-English/Menu/Climate-change/Swedish-News-on-Climate-Change/More-and-more-public-bodies-in-Sweden-have-guidelines-on-green-procurement/
***
Upphandling24
Upphandling24 is a commercial website in Swedish, dedicated to public procurement news and information:
http://upphandling24.idg.se/
***
Confederation of Swedish Enterprise
Svenskt Näringsliv (the Confederation of Swedish Enterprise) lobbies for more open public markets. The information is in Swedish:
http://www.svensktnaringsliv.se/fragor/offentlig_upphandling/article15121.ece
***
Local Authorities and Regions
For the members of Sveriges Kommuner och Landsting (the Swedish Association of Local Authorities and Regions, SALAR) the complicated procurement legislation is a constant headache, which results in demands for simplification and continuous monitoring of new proposals and decisions (in Swedish):
http://www.skl.se
***
Freedom of choice
The Swedish Competition Authority has a page in English ‘New rules pave the way for freedom of choice’ on a new government proposal. The law, due to come into force on 1 January 2009, regulates how municipalities and county councils are to proceed if they decide to introduce a freedom-of-choice system in their care services:
http://www.konkurrensverket.se/t/NewsPage____3987.aspx
The Government Bill, Regeringens proposition 2008/09:29 Lag om valfrihetssystem, is available in Swedish:
http://www.regeringen.se/content/1/c6/11/25/56/e7303623.pdf
***
It is hard to penetrate new markets, especially outside one’s own home country, and public procurement adds its own twist.
The language barriers within the internal market are formidable, and in Sweden the available official information in English can be described as basic. But generally Swedish officials are helpful and English is almost a second language to them, so once you get the ball rolling, you have every chance of success.
Ralf Grahn
Wednesday, 29 October 2008
Public procurement in Finland
Public information in Finland is available by law in Finnish and (to a lesser degree) in Swedish. But increasingly government information can be found in English for practical reasons.
For international companies and their advisors there is an unofficial English translation of the Finnish Act on Public Contracts (348/2007), based on Directive 2004/18/EC, available at:
http://www.finlex.fi/en/laki/kaannokset/2007/en20070348.pdf
***
The official versions are in Finnish and Swedish.
Finnish: Laki julkisista hankinnoista (348/2007):
http://www.finlex.fi/fi/laki/ajantasa/2007/20070348
Swedish: Lag om offentlig upphandling (348/2007):
http://www.finlex.fi/sv/laki/ajantasa/2007/20070348
***
The Government Bill, leading to the Act on Public Contracts, in Finnish ‘Hallituksen esitys Eduskunnalle laeiksi julkisista hankinnoista sekä vesi- ja energiahuollon, liikenteen ja postipalvelujen alalla toimivien yksiköiden hankinnoista (HE 50/2006 vp) and in Swedish ‘Regeringens proposition till Riksdagen med förslag till lag om offentlig upphandling och lag om upphandling inom sektorerna vatten, energi, transporter och posttjänster (RP 50/2006 rd), is accessible at:
http://www.finlex.fi/fi/esitykset/he/2006/?_offset=220
***
The Act, based upon the Utilities Directive 2004/17/EC, ‘Laki vesi- ja energiahuollon, liikenteen ja postipalvelujen alalla toimivien yksiköiden hankinnoista’ (349/2007) is available only in the official Finnish and Swedish versions.
Here in Finnish:
http://www.finlex.fi/fi/laki/ajantasa/2007/20070349
’Lag om upphandling inom sektorerna vatten, energi, transporter och posttjänster’ (349/2007) in Swedish:
http://www.finlex.fi/sv/laki/ajantasa/2007/20070349
***
The advisory website Hankinnat.fi offers brief information in English at:
http://www.kunnat.net/k_etusivu.asp?path=1;161;122591
***
Tenders are announced in Finnish and Swedish on HILMA:
http://www.hankintailmoitukset.fi/
***
The Ministry of Employment and the Economy offers additional information about tender procedures in English at:
http://www.tem.fi/?l=en&s=102
The Ministry pages contain: Latest updates on Public procurement, Legislation (public procurement), Government institutions (Public procurement), Advice on public contracts, Publication on contracts, Thresholds, Case law (Public procurement), Special sectors (Public procurement) and Further information and links (Public procurement).
Ralf Grahn
For international companies and their advisors there is an unofficial English translation of the Finnish Act on Public Contracts (348/2007), based on Directive 2004/18/EC, available at:
http://www.finlex.fi/en/laki/kaannokset/2007/en20070348.pdf
***
The official versions are in Finnish and Swedish.
Finnish: Laki julkisista hankinnoista (348/2007):
http://www.finlex.fi/fi/laki/ajantasa/2007/20070348
Swedish: Lag om offentlig upphandling (348/2007):
http://www.finlex.fi/sv/laki/ajantasa/2007/20070348
***
The Government Bill, leading to the Act on Public Contracts, in Finnish ‘Hallituksen esitys Eduskunnalle laeiksi julkisista hankinnoista sekä vesi- ja energiahuollon, liikenteen ja postipalvelujen alalla toimivien yksiköiden hankinnoista (HE 50/2006 vp) and in Swedish ‘Regeringens proposition till Riksdagen med förslag till lag om offentlig upphandling och lag om upphandling inom sektorerna vatten, energi, transporter och posttjänster (RP 50/2006 rd), is accessible at:
http://www.finlex.fi/fi/esitykset/he/2006/?_offset=220
***
The Act, based upon the Utilities Directive 2004/17/EC, ‘Laki vesi- ja energiahuollon, liikenteen ja postipalvelujen alalla toimivien yksiköiden hankinnoista’ (349/2007) is available only in the official Finnish and Swedish versions.
Here in Finnish:
http://www.finlex.fi/fi/laki/ajantasa/2007/20070349
’Lag om upphandling inom sektorerna vatten, energi, transporter och posttjänster’ (349/2007) in Swedish:
http://www.finlex.fi/sv/laki/ajantasa/2007/20070349
***
The advisory website Hankinnat.fi offers brief information in English at:
http://www.kunnat.net/k_etusivu.asp?path=1;161;122591
***
Tenders are announced in Finnish and Swedish on HILMA:
http://www.hankintailmoitukset.fi/
***
The Ministry of Employment and the Economy offers additional information about tender procedures in English at:
http://www.tem.fi/?l=en&s=102
The Ministry pages contain: Latest updates on Public procurement, Legislation (public procurement), Government institutions (Public procurement), Advice on public contracts, Publication on contracts, Thresholds, Case law (Public procurement), Special sectors (Public procurement) and Further information and links (Public procurement).
Ralf Grahn
European Central Bank Ig: Amending ESCB Statute
Amending the treaties of the European Union is a laborious (some would say impossible) process in a union of 27. All the same, the member states have negotiated voluminous treaties and protocols in fine detail. This leads to recurring needs for amendments when policies evolve and circumstances change.
The member states have generally put themselves in the place of Tantalus: Constant hunger and thirst, but no satisfaction.
Well, not totally. The enabling clause (passerelle) has been introduced to make simplified amendments possible, in details here and there.
***
Protocol (No 18) on the Statute of the European System of Central Banks and of the European Central Bank (annexed to the latest consolidated version of the current treaties, OJ 29.12.2006 C 321 E/256─280) is a treaty level document, in principle requiring the application of the rules for treaty amendment if something has to be changed.
Mercifully, the member states’ governments have agreed that some household rules can be tweaked without a full-scale intergovernmental conference and ratification in every EU member state.
***
Article 107(5) of the Treaty establishing the European Community (TEC) offers an ‘amendment light’ procedure for changing parts of the ESCB Statute. This ‘passerelle’ type provision is limited to certain Articles, and four EU bodies are involved in each change, with the representatives of the member states (the Council) making the decision.
Here is paragraph 5 on the scope of simplified amendments (as in the latest consolidated version of the treaties, OJ 29.12.2006 C 321 E/88):
Article 107(5) TEC
5. Articles 5.1, 5.2, 5.3, 17, 18, 19.1, 22, 23, 24, 26, 32.2, 32.3, 32.4, 32.6, 33.1(a) and 36 of the Statute of the ESCB may be amended by the Council, acting either by a qualified majority on a recommendation from the ECB and after consulting the Commission or unanimously on a proposal from the Commission and after consulting the ECB. In either case, the assent of the European Parliament shall be required.
***
For some people, enabling clauses are one more devious example of power-creep by ‘Brussels’ (although the European Central Bank is located in Frankfurt am Main), so we have to take a closer look at how the TEC places our distinct heritages and age-old freedoms at risk. In other words, we have to turn to the ESCB Statute to see what the Articles cover.
Article 5.1: Collecting statistical information.
Article 5.2: National central banks gathering statistical information.
Article 5.3: ECB rules for the collection, compilation and distribution of statistics.
Article 17: The ECB and the national central banks have the authority to open accounts
for credit institutions, public entities and other market participants and accept assets, including
book entry securities, as collateral.
Article 18: The ECB and the national central banks carry out open market and credit operations according to general principles established by the ECB.
Article 19.1: The ECB can determine the minimum reserve accounts credit institutions and national central banks have to hold, and the ECB can levy penalty interest and impose sanctions in case of non-compliance.
Article 22: the ECB may make regulations to ensure efficient and sound clearing and payment systems.
Article 23: The ECB and the national central banks can establish international relations with central banks and financial institutions in other countries and, where appropriate, with international organisations, and they can conduct international banking operations.
Article 24: the ECB and national central banks may enter into operations for their administrative purposes or for their staff.
Article 26: On annual financial accounts of the ECB and a consolidated ESCB balance sheet.
Article 32.2: Guidelines for determining each national central bank’s annual monetary income from its assets.
Article 32.3: An alternative method for determining the national central bank’s monetary income.
Article 32.4: Deductions from the monetary income.
Article 32.6: Clearing and settlement of monetary income.
Article 33.1(a): Allocation of the net profit of the ECB.
Article 36: The Governing Council lays down the conditions of employment of the staff of the ECB, and the Court of Justice has jurisdiction in disputes.
***
Most of the tasks listed above look necessary, if the ECB is to function as a central bank, so it is difficult to imagine the abolishment of (m)any powers. On the other hand, only a few of the Articles seem to leave any room for positive amendments, because the ECB appears to have the (necessary) power.
This leaves us puzzled.
Has the enabling clause for simplified amendments been written for (educational) reasons of principle or for fun?
Or are there concrete and practical reasons to anticipate amendments of the ESCB Statute?
I would be most pleased, if knowledgeable readers would care to comment.
Ralf Grahn
The member states have generally put themselves in the place of Tantalus: Constant hunger and thirst, but no satisfaction.
Well, not totally. The enabling clause (passerelle) has been introduced to make simplified amendments possible, in details here and there.
***
Protocol (No 18) on the Statute of the European System of Central Banks and of the European Central Bank (annexed to the latest consolidated version of the current treaties, OJ 29.12.2006 C 321 E/256─280) is a treaty level document, in principle requiring the application of the rules for treaty amendment if something has to be changed.
Mercifully, the member states’ governments have agreed that some household rules can be tweaked without a full-scale intergovernmental conference and ratification in every EU member state.
***
Article 107(5) of the Treaty establishing the European Community (TEC) offers an ‘amendment light’ procedure for changing parts of the ESCB Statute. This ‘passerelle’ type provision is limited to certain Articles, and four EU bodies are involved in each change, with the representatives of the member states (the Council) making the decision.
Here is paragraph 5 on the scope of simplified amendments (as in the latest consolidated version of the treaties, OJ 29.12.2006 C 321 E/88):
Article 107(5) TEC
5. Articles 5.1, 5.2, 5.3, 17, 18, 19.1, 22, 23, 24, 26, 32.2, 32.3, 32.4, 32.6, 33.1(a) and 36 of the Statute of the ESCB may be amended by the Council, acting either by a qualified majority on a recommendation from the ECB and after consulting the Commission or unanimously on a proposal from the Commission and after consulting the ECB. In either case, the assent of the European Parliament shall be required.
***
For some people, enabling clauses are one more devious example of power-creep by ‘Brussels’ (although the European Central Bank is located in Frankfurt am Main), so we have to take a closer look at how the TEC places our distinct heritages and age-old freedoms at risk. In other words, we have to turn to the ESCB Statute to see what the Articles cover.
Article 5.1: Collecting statistical information.
Article 5.2: National central banks gathering statistical information.
Article 5.3: ECB rules for the collection, compilation and distribution of statistics.
Article 17: The ECB and the national central banks have the authority to open accounts
for credit institutions, public entities and other market participants and accept assets, including
book entry securities, as collateral.
Article 18: The ECB and the national central banks carry out open market and credit operations according to general principles established by the ECB.
Article 19.1: The ECB can determine the minimum reserve accounts credit institutions and national central banks have to hold, and the ECB can levy penalty interest and impose sanctions in case of non-compliance.
Article 22: the ECB may make regulations to ensure efficient and sound clearing and payment systems.
Article 23: The ECB and the national central banks can establish international relations with central banks and financial institutions in other countries and, where appropriate, with international organisations, and they can conduct international banking operations.
Article 24: the ECB and national central banks may enter into operations for their administrative purposes or for their staff.
Article 26: On annual financial accounts of the ECB and a consolidated ESCB balance sheet.
Article 32.2: Guidelines for determining each national central bank’s annual monetary income from its assets.
Article 32.3: An alternative method for determining the national central bank’s monetary income.
Article 32.4: Deductions from the monetary income.
Article 32.6: Clearing and settlement of monetary income.
Article 33.1(a): Allocation of the net profit of the ECB.
Article 36: The Governing Council lays down the conditions of employment of the staff of the ECB, and the Court of Justice has jurisdiction in disputes.
***
Most of the tasks listed above look necessary, if the ECB is to function as a central bank, so it is difficult to imagine the abolishment of (m)any powers. On the other hand, only a few of the Articles seem to leave any room for positive amendments, because the ECB appears to have the (necessary) power.
This leaves us puzzled.
Has the enabling clause for simplified amendments been written for (educational) reasons of principle or for fun?
Or are there concrete and practical reasons to anticipate amendments of the ESCB Statute?
I would be most pleased, if knowledgeable readers would care to comment.
Ralf Grahn
Tuesday, 28 October 2008
European Central Bank: Procurement rules
The ECB declares its commitment to the principle of cost-efficiency and to seeking the best value for money from the procurement of goods, services and works.
Still, the EC Procurement Directive (2004/18/EC) and the Financial Regulation (No 1605/2002) do not apply to the European Central Bank (ECB), but the ECB states that it respects the general principles of procurement law as reflected in the Procurement Directive and the Financial Regulation.
***
ESCB Statute
Protocol (No 18) on the Statute of the European System of Central Banks and of the European Central Bank (ESCB Statute; annexed to the latest consolidated version of the current treaties, OJ 29.12.2006 C 321 E/256─280) includes Article 11.6, which gives the Executive Board the authority to run the current business of the ECB:
11.6. The Executive Board shall be responsible for the current business of the ECB.
***
ECB Rules of Procedure
More detailed rules are found in the Decision of the European Central Bank of 19 February 2004 adopting the Rules of Procedure of the European Central Bank (ECB/2004/2); OJ 18.3.2004 C 80/33.
Article 19 of the ECB Rules of Procedures sets out the main principles concerning procurement of goods and services for the ECB:
Article 19 ECB Rules of Procedure
Procurement
19.1. Procurement of goods and services for the ECB shall give due regard to the principles of publicity, transparency, equal access, non-discrimination and efficient administration.
19.2. Except for the principle of efficient administration, derogations may be made from the above principles in cases of urgency; for reasons of security or secrecy; where there is a sole supplier; for supplies from the national central banks to the ECB; to ensure the continuity of a supplier.
***
ECB Rules of Procurement
On these bases, the Decision of the European Central Bank of 3 July 2007 laying down the Rules on Procurement (ECB/2007/5), OJ 14.7.2007 L 184/34, created new procurement rules for the ECB, largely built on general EC legislation, but with details particular to the ECB and the ESCB.
***
EBC General Terms & Conditions
The ECB, like other contracting parties in a strong position, has set out its own standard terms for suppliers. These are presented separately (in English and German) for:
Services and Works (Dienst & Werk)
Purchase (Kauf)
There is a third set of standard terms, concerning construction work, available on the ECB web site in German (Vertragsbedingungen für Bauleistungen), perhaps an indication of the planned Headquarters Building in Frankfurt am Main.
For an overview of ECB procurement, go to:
http://www.ecb.europa.eu/ecb/jobsproc/proc/tenders/html/index.en.html
Ralf Grahn
Still, the EC Procurement Directive (2004/18/EC) and the Financial Regulation (No 1605/2002) do not apply to the European Central Bank (ECB), but the ECB states that it respects the general principles of procurement law as reflected in the Procurement Directive and the Financial Regulation.
***
ESCB Statute
Protocol (No 18) on the Statute of the European System of Central Banks and of the European Central Bank (ESCB Statute; annexed to the latest consolidated version of the current treaties, OJ 29.12.2006 C 321 E/256─280) includes Article 11.6, which gives the Executive Board the authority to run the current business of the ECB:
11.6. The Executive Board shall be responsible for the current business of the ECB.
***
ECB Rules of Procedure
More detailed rules are found in the Decision of the European Central Bank of 19 February 2004 adopting the Rules of Procedure of the European Central Bank (ECB/2004/2); OJ 18.3.2004 C 80/33.
Article 19 of the ECB Rules of Procedures sets out the main principles concerning procurement of goods and services for the ECB:
Article 19 ECB Rules of Procedure
Procurement
19.1. Procurement of goods and services for the ECB shall give due regard to the principles of publicity, transparency, equal access, non-discrimination and efficient administration.
19.2. Except for the principle of efficient administration, derogations may be made from the above principles in cases of urgency; for reasons of security or secrecy; where there is a sole supplier; for supplies from the national central banks to the ECB; to ensure the continuity of a supplier.
***
ECB Rules of Procurement
On these bases, the Decision of the European Central Bank of 3 July 2007 laying down the Rules on Procurement (ECB/2007/5), OJ 14.7.2007 L 184/34, created new procurement rules for the ECB, largely built on general EC legislation, but with details particular to the ECB and the ESCB.
***
EBC General Terms & Conditions
The ECB, like other contracting parties in a strong position, has set out its own standard terms for suppliers. These are presented separately (in English and German) for:
Services and Works (Dienst & Werk)
Purchase (Kauf)
There is a third set of standard terms, concerning construction work, available on the ECB web site in German (Vertragsbedingungen für Bauleistungen), perhaps an indication of the planned Headquarters Building in Frankfurt am Main.
For an overview of ECB procurement, go to:
http://www.ecb.europa.eu/ecb/jobsproc/proc/tenders/html/index.en.html
Ralf Grahn
European Central Bank If: ESCB and ECB Statute
The legal framework of the European System of Central Banks (ESCB) and the European Central Bank (ECB) is set out at treaty level in the Treaty establishing the European Community (TEC) and in the Statute of the European System of Central Banks and of the European Central Bank (ESCB Statute).
***
Article 107(4) TEC is the bridge between the treaty proper and the ESCB Statute:
4. The Statute of the ESCB is laid down in a Protocol annexed to this Treaty.
***
ESCB Statute
We have referred to individual Articles of the ESCB Statute in a number of posts (and will do so again), because Protocol (No 18) on the Statute of the European System of Central Banks and of the European Central Bank (annexed to the latest consolidated version of the current treaties, OJ 29.12.2006 C 321 E/256─280) not only repeats, but elaborates on the treaty provisions.
This blog post is content to give you an overview of the ESCB Statute, by presenting a table of contents, which makes it easier to find what you want.
CHAPTER I
CONSTITUTION OF THE ESCB
Article 1 The European System of Central Banks
CHAPTER II
OBJECTIVES AND TASKS OF THE ESCB
Article 2 Objectives
Article 3 Tasks
Article 4 Advisory functions
Article 5 Collection of statistical information
Article 6 International cooperation
CHAPTER III
ORGANISATION OF THE ESCB
Article 7 Independence
Article 8 General principle
Article 9 The European Central Bank
Article 10 The Governing Council
Article 11 The Executive Board
Article 12 Responsibilities of the decision-making bodies
Article 13 The President
Article 14 National central banks
Article 15 Reporting commitments
Article 16 Banknotes
CHAPTER IV
MONETARY FUNCTIONS AND OPERATIONS OF THE ESCB
Article 17 Accounts with the ECB and the national central banks
Article 18 Open market and credit operations
Article 19 Minimum reserves
Article 20 Other instruments of monetary control
Article 21 Operations with public entities
Article 22 Clearing and payment systems
Article 23 External operations
Article 24 Other operations
CHAPTER V
PRUDENTIAL SUPERVISION
Article 25 Prudential supervision
CHAPTER VI
FINANCIAL PROVISIONS OF THE ESCB
Article 26 Financial accounts
Article 27 Auditing
Article 28 Capital of the ECB
Article 29 Key for capital subscription
Article 30 Transfer of foreign reserve assets to the ECB
Article 31 Foreign reserve assets held by national central banks
Article 32 Allocation of monetary income of national central banks
Article 33 Allocation of net profits and losses of the ECB
CHAPTER VII
GENERAL PROVISIONS
Article 34 Legal acts
Article 35 Judicial control and related matters
Article 36 Staff
Article 37 Seat
Article 38 Professional secrecy
Article 39 Signatories
Article 40 Privileges and immunities
CHAPTER VIII
AMENDMENT OF THE STATUTE AND COMPLEMENTARY LEGISLATION
Article 41 Simplified amendment procedure
Article 42 Complementary legislation
CHAPTER IX
TRANSITIONAL AND OTHER PROVISIONS FOR THE ESCB
Article 43 General provisions
Article 44 Transitional tasks of the ECB
Article 45 The General Council of the ECB
Article 46 Rules of Procedure of the General Council
Article 47 Responsibilities of the General Council
Article 48 Transitional provisions for the capital of the ECB
Article 49 Deferred payment of capital, reserves and provisions of the ECB
Article 50 Initial appointment of the members of the Executive Board
Article 51 Derogation from Article 32
Article 52 Exchange of banknotes in Community currencies
Article 53 Applicability of the transitional provisions
***
ECB Rules of Procedure
The ECB Rules of Procedure supplement the Treaty establishing the European Community and the Statute of the European System of Central Banks and of the European Central Bank, and they define the term ‘Eurosystem’ to mean the European Central Bank (ECB) and the national central banks of those Member States whose currency is the euro.
In other words, for added detail on the operating rules of the ECB, you can go to the Decision of the European Central Bank of 19 February 2004 adopting the Rules of Procedure of the European Central Bank (ECB/2004/2); OJ 18.3.2004 C 080/33.
***
ECB General Council Rules of Procedure
Since the European Union is doomed to have non-euro area national central banks for the forseeadle future, the European Central Bank has adopted Rules of Procedure of the ‘transitional’ General Council:
Decision of the European Central Bank of 17 June 2004 adopting the Rules of Procedure of the General Council of the European Central Bank (ECB/2004/12); OJ 30.6.2004 L 230/61.
Ralf Grahn
***
Article 107(4) TEC is the bridge between the treaty proper and the ESCB Statute:
4. The Statute of the ESCB is laid down in a Protocol annexed to this Treaty.
***
ESCB Statute
We have referred to individual Articles of the ESCB Statute in a number of posts (and will do so again), because Protocol (No 18) on the Statute of the European System of Central Banks and of the European Central Bank (annexed to the latest consolidated version of the current treaties, OJ 29.12.2006 C 321 E/256─280) not only repeats, but elaborates on the treaty provisions.
This blog post is content to give you an overview of the ESCB Statute, by presenting a table of contents, which makes it easier to find what you want.
CHAPTER I
CONSTITUTION OF THE ESCB
Article 1 The European System of Central Banks
CHAPTER II
OBJECTIVES AND TASKS OF THE ESCB
Article 2 Objectives
Article 3 Tasks
Article 4 Advisory functions
Article 5 Collection of statistical information
Article 6 International cooperation
CHAPTER III
ORGANISATION OF THE ESCB
Article 7 Independence
Article 8 General principle
Article 9 The European Central Bank
Article 10 The Governing Council
Article 11 The Executive Board
Article 12 Responsibilities of the decision-making bodies
Article 13 The President
Article 14 National central banks
Article 15 Reporting commitments
Article 16 Banknotes
CHAPTER IV
MONETARY FUNCTIONS AND OPERATIONS OF THE ESCB
Article 17 Accounts with the ECB and the national central banks
Article 18 Open market and credit operations
Article 19 Minimum reserves
Article 20 Other instruments of monetary control
Article 21 Operations with public entities
Article 22 Clearing and payment systems
Article 23 External operations
Article 24 Other operations
CHAPTER V
PRUDENTIAL SUPERVISION
Article 25 Prudential supervision
CHAPTER VI
FINANCIAL PROVISIONS OF THE ESCB
Article 26 Financial accounts
Article 27 Auditing
Article 28 Capital of the ECB
Article 29 Key for capital subscription
Article 30 Transfer of foreign reserve assets to the ECB
Article 31 Foreign reserve assets held by national central banks
Article 32 Allocation of monetary income of national central banks
Article 33 Allocation of net profits and losses of the ECB
CHAPTER VII
GENERAL PROVISIONS
Article 34 Legal acts
Article 35 Judicial control and related matters
Article 36 Staff
Article 37 Seat
Article 38 Professional secrecy
Article 39 Signatories
Article 40 Privileges and immunities
CHAPTER VIII
AMENDMENT OF THE STATUTE AND COMPLEMENTARY LEGISLATION
Article 41 Simplified amendment procedure
Article 42 Complementary legislation
CHAPTER IX
TRANSITIONAL AND OTHER PROVISIONS FOR THE ESCB
Article 43 General provisions
Article 44 Transitional tasks of the ECB
Article 45 The General Council of the ECB
Article 46 Rules of Procedure of the General Council
Article 47 Responsibilities of the General Council
Article 48 Transitional provisions for the capital of the ECB
Article 49 Deferred payment of capital, reserves and provisions of the ECB
Article 50 Initial appointment of the members of the Executive Board
Article 51 Derogation from Article 32
Article 52 Exchange of banknotes in Community currencies
Article 53 Applicability of the transitional provisions
***
ECB Rules of Procedure
The ECB Rules of Procedure supplement the Treaty establishing the European Community and the Statute of the European System of Central Banks and of the European Central Bank, and they define the term ‘Eurosystem’ to mean the European Central Bank (ECB) and the national central banks of those Member States whose currency is the euro.
In other words, for added detail on the operating rules of the ECB, you can go to the Decision of the European Central Bank of 19 February 2004 adopting the Rules of Procedure of the European Central Bank (ECB/2004/2); OJ 18.3.2004 C 080/33.
***
ECB General Council Rules of Procedure
Since the European Union is doomed to have non-euro area national central banks for the forseeadle future, the European Central Bank has adopted Rules of Procedure of the ‘transitional’ General Council:
Decision of the European Central Bank of 17 June 2004 adopting the Rules of Procedure of the General Council of the European Central Bank (ECB/2004/12); OJ 30.6.2004 L 230/61.
Ralf Grahn
Re: Europa and Julien Frisch: EU transparency now!
Is there no European public sphere? If that is your belief, you don’t believe in the existence of Steve Peers, RZ or Julien Frisch (and a growing number of engaged EU citizens, researchers and NGOs).
***
I was happy to see that Euroblogger RZ on Re: Europa wrote a post on the Statewatch proposals for improved openness, transparency and democracy in the European Union, prepared by Professor Steve Peers of the University of Essex.
The article ‘Towards a more perfect Union’ indicated the main thrust of the proposals, and called the document brilliant:
http://reeuropa.blogspot.com/2008/10/towards-more-perfect-union.html
***
Julien Frisch, another Euroblogger with an EU citizens’ perspective, also wrote a post on the same theme ‘More transparency in the Council of the European Union!’, calling for immediate reforms:
http://julienfrisch.blogspot.com/2008/10/more-transparency-in-council-of.html
***
Steve Peers and Statewatch make proposals for EU openness, transparency and democracy in two draft documents:
1) Declaration of the European Council on enhancing the openness, transparency and democracy of the activities of the European Union (Annex I)
2) Inter-Institutional Agreement On enhancing public access to documents and citizens’ participation in decision-making as regards the co-decision procedure (Annex II)
Together with the introductory explanations, they form the ‘Statewatch analysis: Proposals for greater openness, transparency and democracy in the EU’, by Professor Steve Peers, University of Essex (October 2008).
The brilliance of the proposals lies in that they can be implemented now, regardless of the Lisbon Treaty. They represent small, but concrete steps towards a better union.
This important document is available at:
http://www.statewatch.org/analyses/proposals-for-greater-openness-peers-08.pdf
***
Even before a democratic European Union is established, a number of improvements are possible, if the political will is there.
Essential reading for heads of state or government ─ and for other EU citizens.
“Magnanimity in politics is not seldom the truest wisdom; and a great empire and little minds go ill together.” (Edmund Burke)
***
No number of inter-institutional agreements on better communications or communications campaigns is going to legitimise the European project without real reform ─ big and small ─ of structures and content. As long as our leaders fail to embrace democratic reform, their project plays into the hands of populist and anti-reformist movements everywhere.
The European Union needs two things: Real power, where it matters. Real democracy, where the matters belong.
It is time for the European Council to re-found the European Union.
Ralf Grahn
***
I was happy to see that Euroblogger RZ on Re: Europa wrote a post on the Statewatch proposals for improved openness, transparency and democracy in the European Union, prepared by Professor Steve Peers of the University of Essex.
The article ‘Towards a more perfect Union’ indicated the main thrust of the proposals, and called the document brilliant:
http://reeuropa.blogspot.com/2008/10/towards-more-perfect-union.html
***
Julien Frisch, another Euroblogger with an EU citizens’ perspective, also wrote a post on the same theme ‘More transparency in the Council of the European Union!’, calling for immediate reforms:
http://julienfrisch.blogspot.com/2008/10/more-transparency-in-council-of.html
***
Steve Peers and Statewatch make proposals for EU openness, transparency and democracy in two draft documents:
1) Declaration of the European Council on enhancing the openness, transparency and democracy of the activities of the European Union (Annex I)
2) Inter-Institutional Agreement On enhancing public access to documents and citizens’ participation in decision-making as regards the co-decision procedure (Annex II)
Together with the introductory explanations, they form the ‘Statewatch analysis: Proposals for greater openness, transparency and democracy in the EU’, by Professor Steve Peers, University of Essex (October 2008).
The brilliance of the proposals lies in that they can be implemented now, regardless of the Lisbon Treaty. They represent small, but concrete steps towards a better union.
This important document is available at:
http://www.statewatch.org/analyses/proposals-for-greater-openness-peers-08.pdf
***
Even before a democratic European Union is established, a number of improvements are possible, if the political will is there.
Essential reading for heads of state or government ─ and for other EU citizens.
“Magnanimity in politics is not seldom the truest wisdom; and a great empire and little minds go ill together.” (Edmund Burke)
***
No number of inter-institutional agreements on better communications or communications campaigns is going to legitimise the European project without real reform ─ big and small ─ of structures and content. As long as our leaders fail to embrace democratic reform, their project plays into the hands of populist and anti-reformist movements everywhere.
The European Union needs two things: Real power, where it matters. Real democracy, where the matters belong.
It is time for the European Council to re-found the European Union.
Ralf Grahn
Monday, 27 October 2008
Statewatch: EU openness, transparency and democracy
Even before true democratic reform of the European Union, and more or less regardless of the ratification of the Treaty of Lisbon, the European Council could improve openness, transparency and democracy by providing impetus for a number of limited, but important reforms.
Professor Steve Peers has written a number of proposals for Statewatch, setting out possible improvements, which primarily require political will. The concrete proposals are given in two draft documents:
Declaration of the European Council on enhancing the openness, transparency and democracy of the activities of the European Union (Annex I)
Inter-Institutional Agreement On enhancing public access to documents and citizens’ participation in decision-making as regards the co-decision procedure (Annex II)
Together with the introductory explanations, they form the ‘Statewatch analysis: Proposals for greater openness, transparency and democracy in the EU’, by Professor Steve Peers, University of Essex (October 2008).
This important document is available at:
http://www.statewatch.org/analyses/proposals-for-greater-openness-peers-08.pdf
***
Before a democratic European Union is established, a number of improvements are possible, if the political will is there. Even the Lisbon Treaty might become less odious for some EU citizens, if these reform steps were taken.
Ralf Grahn
Professor Steve Peers has written a number of proposals for Statewatch, setting out possible improvements, which primarily require political will. The concrete proposals are given in two draft documents:
Declaration of the European Council on enhancing the openness, transparency and democracy of the activities of the European Union (Annex I)
Inter-Institutional Agreement On enhancing public access to documents and citizens’ participation in decision-making as regards the co-decision procedure (Annex II)
Together with the introductory explanations, they form the ‘Statewatch analysis: Proposals for greater openness, transparency and democracy in the EU’, by Professor Steve Peers, University of Essex (October 2008).
This important document is available at:
http://www.statewatch.org/analyses/proposals-for-greater-openness-peers-08.pdf
***
Before a democratic European Union is established, a number of improvements are possible, if the political will is there. Even the Lisbon Treaty might become less odious for some EU citizens, if these reform steps were taken.
Ralf Grahn
Europe: Populism or democracy?
Ahead of the European elections in June 2009, we have seen two political trends. One the one hand, after the historic EU enlargement in 2004 and 2007 and since the beginning of the current Commission, the communitarian spirit seems to have ceded to increasing intergovernmentalism and national self-interest. The financial turmoil has accelerated both nationalistic responses and intergovernmental summiteering, with various ‘ad hoc’ initiatives thrown in for good measure. The Treaty of Lisbon would have brought some belated efficiency gains after the expansion to 27 members, but the Lisbon Treaty fails miserably in creating a European level democracy.
On the other hand, popular estrangement has increasingly favoured nationalistic and populist parties in national and sub-national elections. Referendums, purportedly on pan-European issues like the Constitutional Treaty and the Lisbon Treaty, have boosted anti-reformist and self-absorbed movements, left or right, in France, the Netherlands and Ireland.
Municipal elections in Finland are hardly hot stuff for international media generally, but the spectacular gains by the populist True Finns are the latest indication of anti-European sentiments on the rise. Although the True Finns captured less than six per cent of the vote, their swayed almost six times as many voters as four years ago.
The International Edition of Helsingin Sanomat has more:
http://www.hs.fi/english/article/MUNICIPAL+ELECTIONS+SUNDAY+2345+National+Coalition+Party+largest+party+True+Finns+big+winners+gains+for+Greens+/1135240557573
***
More than ever, pan-European solutions and actions are needed to enhance our security and to regain our prosperity, but populations are increasingly rejecting the European leaders’ intergovernmentalist and functionalist project.
The group of wise persons has been expressly forbidden to even think about so called institutional issues, but today’s challenges do not call for institutional tinkering in the customary manner.
The wise persons ─ and the European leaders ─ have to look at the foundations of the European project. Without democratic legitimacy and accountability the European Union is running aground. Only a European Union based on its citizens can give us the foundations we need to weather the storms.
Ralf Grahn
On the other hand, popular estrangement has increasingly favoured nationalistic and populist parties in national and sub-national elections. Referendums, purportedly on pan-European issues like the Constitutional Treaty and the Lisbon Treaty, have boosted anti-reformist and self-absorbed movements, left or right, in France, the Netherlands and Ireland.
Municipal elections in Finland are hardly hot stuff for international media generally, but the spectacular gains by the populist True Finns are the latest indication of anti-European sentiments on the rise. Although the True Finns captured less than six per cent of the vote, their swayed almost six times as many voters as four years ago.
The International Edition of Helsingin Sanomat has more:
http://www.hs.fi/english/article/MUNICIPAL+ELECTIONS+SUNDAY+2345+National+Coalition+Party+largest+party+True+Finns+big+winners+gains+for+Greens+/1135240557573
***
More than ever, pan-European solutions and actions are needed to enhance our security and to regain our prosperity, but populations are increasingly rejecting the European leaders’ intergovernmentalist and functionalist project.
The group of wise persons has been expressly forbidden to even think about so called institutional issues, but today’s challenges do not call for institutional tinkering in the customary manner.
The wise persons ─ and the European leaders ─ have to look at the foundations of the European project. Without democratic legitimacy and accountability the European Union is running aground. Only a European Union based on its citizens can give us the foundations we need to weather the storms.
Ralf Grahn
European Central Bank Ie: Governing Council and Executive Board
The governing bodies of the European System of Central Banks (ESCB) are written into the Treaty establishing the European Community (TEC) as if all EU member states had adopted the euro currency. In practice, the European Central Bank (ECB) is at the core of the Eurosystem, including the national central banks of the eurozone countries, but additional decision-making structures will have to accommodate three groups of “outsider” countries for a long time, possibly even permanently:
First, there are the old member states the United Kingdom and Denmark with, in principle, permanent opt-outs from the single currency, and Sweden technically not fit for the third stage of economic and monetary union (EMU).
The second group consists of the new member states with a derogation, not yet able (or willing) to adopt the euro currency.
Third, future EU member states will mean new recruits to the non-euro group, if the enlargement process continues, before they fulfil the convergence criteria.
***
Eurosystem
Article 107(3) TEC reflects the “official position”, which is a reality for the 15 (soon 16) eurozone countries (in the latest consolidated version of the treaties, OJ 29.12.2006 C 321 E/88):
Article 107(3) TEC
3. The ESCB shall be governed by the decision-making bodies of the ECB which shall be the Governing Council and the Executive Board.
***
Protocol (No 18) on the Statute of the European System of Central Banks and of the European Central Bank (OJ 29.12.2006 C 321 E/256─280) repeats and elaborates on the treaty provisions in Chapter III Organisation of the ESCB.
The single currency evidently needs centralised decision-making structures, reflected in the ESCB Statute, which reiterates that the decision-making bodies of the ESCB are those of the ECB:
Article 8 ESCB Statute
General principle
The ESCB shall be governed by the decision-making bodies of the ECB.
***
The rest of Article 107(3) TEC is repeated in Article 9.3 of the ESCB Statute, which names the Governing Council and the Executive Board of the ECB as the decision-making bodies:
Article 9 ESCB Statute
The European Central Bank
9.1. The ECB which, in accordance with Article 107(2) of this Treaty, shall have legal personality, shall enjoy in each of the Member States the most extensive legal capacity accorded to legal persons under its law; it may, in particular, acquire or dispose of movable and immovable property and may be a party to legal proceedings.
9.2. The ECB shall ensure that the tasks conferred upon the ESCB under Article 105(2), (3) and (5) of this Treaty are implemented either by its own activities pursuant to this Statute or through the national central banks pursuant to Articles 12.1 and 14.
9.3. In accordance with Article 107(3) of this Treaty, the decision making bodies of the ECB shall be the Governing Council and the Executive Board.
***
The basic treaty provisions on the composition of the decision-making bodies are set out in Article 112 TEC (ex Article 109a). The core group is the ECB Executive Board, with six members, the President, the Vice-President and four other members. They are also members of the larger Governing Council, where the Governors of the national central banks sit:
CHAPTER 3
INSTITUTIONAL PROVISIONS
Article 112 TEC
1. The Governing Council of the ECB shall comprise the members of the Executive Board of the ECB and the Governors of the national central banks.
2. (a) The Executive Board shall comprise the President, the Vice-President and four other members.
(b) The President, the Vice-President and the other members of the Executive Board shall be appointed from among persons of recognised standing and professional experience in monetary or banking matters by common accord of the governments of the Member States at the level of Heads of State or Government, on a recommendation from the Council, after it has consulted the European Parliament and the Governing Council of the ECB.
Their term of office shall be eight years and shall not be renewable.
Only nationals of Member States may be members of the Executive Board.
***
ESCB Statute
Article 10 of the ESCB Statute modifies the voting rights in the ECB Governing Council, when the number of Eurosystem national central banks increases, for the first time when the number exceeds 15 (as it will on 1 January 2009), if the Governing Council does not decide to postpone the rotation system until the number of governors exceeds 18.
For certain decisions the votes are weighted according to the national central banks' shares in the subscribed capital of the ECB.
***
ESCB Statute Article 11 reiterates and expands upon the provisions on the ECB Executive Board in Article 112 TEC.
***
The main responsibilities of the ECB Governing Council and the Executive Board are set out in Article 12 of the ESCB Statute.
***
ECB Executive Board members
The first President of the Executive Board was Wim Duisenberg (from 1998 to 2003). The appointment of the current President Jean-Claude Trichet runs from 2003 to 2011.
Lucas Papademos is Vice-President and the four other members of the Executive Board are: Gertrude Trumpel-Guderell, José Manuel González-Páramo, Lorenzo Bini Smaghi and Jürgen Stark.
The European Central Bank offers additional information on the Executive Board, including current and past members, at:
http://www.ecb.europa.eu/ecb/orga/decisions/eb/html/index.en.html
***
ECB Governing Council members
In addition to the six members of the Executive Board, the ECB Governing Council consists of the governors of the fifteen Eurosystem national central banks:
Guy Quaden (Nationale Bank van België / Banque Nationale de Belgique)
Axel A. Weber (Deutsche Bundesbank)
John Hurley (Central Bank and Financial Services Authority of Ireland)
Georgios Provopoulos (Bank of Greece)
Miguel Fernández Ordóñez (Banco de España)
Christian Noyer (Banque de France)
Mario Draghi (Banca d’Italia)
Athanasios Orphanides (Central Bank of Cyprus)
Yves Mersch (Banque centrale du Luxembourg)
Michael C. Bonello (Central Bank of Malta)
Nout Wellink (De Nederlandsche Bank)
Ewald Nowotny (Oesterreichische Nationalbank)
Vítor Manuel Ribeiro Constáncio (Banco de Portugal)
Marko Kranjec (Banka Slovenije)
Erkki Liikanen (Suomen Pankki – Finlands Bank)
The ECB’s web page on the Governing Council is available at:
http://www.ecb.europa.eu/ecb/orga/decisions/govc/html/index.en.html
***
Member States with a derogation
ECB General Council
The General Council of the European Central Bank is, in principle, a transitional body, where the President and the Vice-President of the ECB Executive Board and the governors of the Eurosystem national central banks are joined by the 12 governors of the non-eurozone national central banks.
Article 44 of the ESCB Statute on transitional tasks provides that the ECB shall take over those tasks of the EMI which, because of the derogations of one or more member states, still have to be performed in the third stage, and that the ECB shall give advice in the preparations for the abrogation of the derogations specified in Article 122 TEC.
ESCB Statute Article 45 is the main provision on the composition of the General Council:
Article 45 ESCB Statute
The General Council of the ECB
45.1. Without prejudice to Article 107(3) of this Treaty, the General Council shall be constituted as a third decision-making body of the ECB.
45.2. The General Council shall comprise the President and Vice-President of the ECB and the Governors of the national central banks. The other members of the Executive Board may participate, without having the right to vote, in meetings of the General Council.
45.3. The responsibilities of the General Council are listed in full in Article 47 of this Statute.
***
The Rules of Procedure of the General Council are dealt with in Article 46 and the Responsibilities of the General Council are laid down in Article 47 of the ESCB Statute.
***
ECB General Council members
In addition to the President and the Vice-President of the ECB Executive Board and the governors of the Eurosystem national central banks the ECB General Council joins the 12 governors of the non-eurozone national central banks (member states with a derogation):
Ivan Iskrov (Bulgarian National Bank)
Zdeněk Tůma (Česká národní banka)
Nils Bernstein (Danmarks Nationalbank)
Andres Lipstok (Eesti Pank)
Ilmārs Rimšēvičs (Latvijas Banka)
Reinoldius Šarkinas (Lietuvos bankas)
András Simor (Magyar Nemzeti Bank)
Slawomir Skrzypek (Narodowy Bank Polski)
Mugur Isǎresku (Banca Natională a Romăniei)
Ivan Šramko (Národná banka slovenska)
Stefan Ingves (Sveriges Riksbank)
Mervyn King (Bank of England)
The ECB’s web page on the General Council is accessible at:
http://www.ecb.europa.eu/ecb/orga/decisions/genc/html/index.en.html
Ralf Grahn
First, there are the old member states the United Kingdom and Denmark with, in principle, permanent opt-outs from the single currency, and Sweden technically not fit for the third stage of economic and monetary union (EMU).
The second group consists of the new member states with a derogation, not yet able (or willing) to adopt the euro currency.
Third, future EU member states will mean new recruits to the non-euro group, if the enlargement process continues, before they fulfil the convergence criteria.
***
Eurosystem
Article 107(3) TEC reflects the “official position”, which is a reality for the 15 (soon 16) eurozone countries (in the latest consolidated version of the treaties, OJ 29.12.2006 C 321 E/88):
Article 107(3) TEC
3. The ESCB shall be governed by the decision-making bodies of the ECB which shall be the Governing Council and the Executive Board.
***
Protocol (No 18) on the Statute of the European System of Central Banks and of the European Central Bank (OJ 29.12.2006 C 321 E/256─280) repeats and elaborates on the treaty provisions in Chapter III Organisation of the ESCB.
The single currency evidently needs centralised decision-making structures, reflected in the ESCB Statute, which reiterates that the decision-making bodies of the ESCB are those of the ECB:
Article 8 ESCB Statute
General principle
The ESCB shall be governed by the decision-making bodies of the ECB.
***
The rest of Article 107(3) TEC is repeated in Article 9.3 of the ESCB Statute, which names the Governing Council and the Executive Board of the ECB as the decision-making bodies:
Article 9 ESCB Statute
The European Central Bank
9.1. The ECB which, in accordance with Article 107(2) of this Treaty, shall have legal personality, shall enjoy in each of the Member States the most extensive legal capacity accorded to legal persons under its law; it may, in particular, acquire or dispose of movable and immovable property and may be a party to legal proceedings.
9.2. The ECB shall ensure that the tasks conferred upon the ESCB under Article 105(2), (3) and (5) of this Treaty are implemented either by its own activities pursuant to this Statute or through the national central banks pursuant to Articles 12.1 and 14.
9.3. In accordance with Article 107(3) of this Treaty, the decision making bodies of the ECB shall be the Governing Council and the Executive Board.
***
The basic treaty provisions on the composition of the decision-making bodies are set out in Article 112 TEC (ex Article 109a). The core group is the ECB Executive Board, with six members, the President, the Vice-President and four other members. They are also members of the larger Governing Council, where the Governors of the national central banks sit:
CHAPTER 3
INSTITUTIONAL PROVISIONS
Article 112 TEC
1. The Governing Council of the ECB shall comprise the members of the Executive Board of the ECB and the Governors of the national central banks.
2. (a) The Executive Board shall comprise the President, the Vice-President and four other members.
(b) The President, the Vice-President and the other members of the Executive Board shall be appointed from among persons of recognised standing and professional experience in monetary or banking matters by common accord of the governments of the Member States at the level of Heads of State or Government, on a recommendation from the Council, after it has consulted the European Parliament and the Governing Council of the ECB.
Their term of office shall be eight years and shall not be renewable.
Only nationals of Member States may be members of the Executive Board.
***
ESCB Statute
Article 10 of the ESCB Statute modifies the voting rights in the ECB Governing Council, when the number of Eurosystem national central banks increases, for the first time when the number exceeds 15 (as it will on 1 January 2009), if the Governing Council does not decide to postpone the rotation system until the number of governors exceeds 18.
For certain decisions the votes are weighted according to the national central banks' shares in the subscribed capital of the ECB.
***
ESCB Statute Article 11 reiterates and expands upon the provisions on the ECB Executive Board in Article 112 TEC.
***
The main responsibilities of the ECB Governing Council and the Executive Board are set out in Article 12 of the ESCB Statute.
***
ECB Executive Board members
The first President of the Executive Board was Wim Duisenberg (from 1998 to 2003). The appointment of the current President Jean-Claude Trichet runs from 2003 to 2011.
Lucas Papademos is Vice-President and the four other members of the Executive Board are: Gertrude Trumpel-Guderell, José Manuel González-Páramo, Lorenzo Bini Smaghi and Jürgen Stark.
The European Central Bank offers additional information on the Executive Board, including current and past members, at:
http://www.ecb.europa.eu/ecb/orga/decisions/eb/html/index.en.html
***
ECB Governing Council members
In addition to the six members of the Executive Board, the ECB Governing Council consists of the governors of the fifteen Eurosystem national central banks:
Guy Quaden (Nationale Bank van België / Banque Nationale de Belgique)
Axel A. Weber (Deutsche Bundesbank)
John Hurley (Central Bank and Financial Services Authority of Ireland)
Georgios Provopoulos (Bank of Greece)
Miguel Fernández Ordóñez (Banco de España)
Christian Noyer (Banque de France)
Mario Draghi (Banca d’Italia)
Athanasios Orphanides (Central Bank of Cyprus)
Yves Mersch (Banque centrale du Luxembourg)
Michael C. Bonello (Central Bank of Malta)
Nout Wellink (De Nederlandsche Bank)
Ewald Nowotny (Oesterreichische Nationalbank)
Vítor Manuel Ribeiro Constáncio (Banco de Portugal)
Marko Kranjec (Banka Slovenije)
Erkki Liikanen (Suomen Pankki – Finlands Bank)
The ECB’s web page on the Governing Council is available at:
http://www.ecb.europa.eu/ecb/orga/decisions/govc/html/index.en.html
***
Member States with a derogation
ECB General Council
The General Council of the European Central Bank is, in principle, a transitional body, where the President and the Vice-President of the ECB Executive Board and the governors of the Eurosystem national central banks are joined by the 12 governors of the non-eurozone national central banks.
Article 44 of the ESCB Statute on transitional tasks provides that the ECB shall take over those tasks of the EMI which, because of the derogations of one or more member states, still have to be performed in the third stage, and that the ECB shall give advice in the preparations for the abrogation of the derogations specified in Article 122 TEC.
ESCB Statute Article 45 is the main provision on the composition of the General Council:
Article 45 ESCB Statute
The General Council of the ECB
45.1. Without prejudice to Article 107(3) of this Treaty, the General Council shall be constituted as a third decision-making body of the ECB.
45.2. The General Council shall comprise the President and Vice-President of the ECB and the Governors of the national central banks. The other members of the Executive Board may participate, without having the right to vote, in meetings of the General Council.
45.3. The responsibilities of the General Council are listed in full in Article 47 of this Statute.
***
The Rules of Procedure of the General Council are dealt with in Article 46 and the Responsibilities of the General Council are laid down in Article 47 of the ESCB Statute.
***
ECB General Council members
In addition to the President and the Vice-President of the ECB Executive Board and the governors of the Eurosystem national central banks the ECB General Council joins the 12 governors of the non-eurozone national central banks (member states with a derogation):
Ivan Iskrov (Bulgarian National Bank)
Zdeněk Tůma (Česká národní banka)
Nils Bernstein (Danmarks Nationalbank)
Andres Lipstok (Eesti Pank)
Ilmārs Rimšēvičs (Latvijas Banka)
Reinoldius Šarkinas (Lietuvos bankas)
András Simor (Magyar Nemzeti Bank)
Slawomir Skrzypek (Narodowy Bank Polski)
Mugur Isǎresku (Banca Natională a Romăniei)
Ivan Šramko (Národná banka slovenska)
Stefan Ingves (Sveriges Riksbank)
Mervyn King (Bank of England)
The ECB’s web page on the General Council is accessible at:
http://www.ecb.europa.eu/ecb/orga/decisions/genc/html/index.en.html
Ralf Grahn
Sunday, 26 October 2008
European Central Bank Id: Legal personality
With legal personality the European Central Bank the capacity to act, subject to the EC Treaty and the ESCB Statute. We look at both authority and limits, within the member states and internationally.
We take a peek at the ECB’s privileges and immunities.
***
Legal personality
We remember that the European Central Bank is not mentioned among the European Community institutions in Article 7 of the Treaty establishing the European Community (TEC), but according to Article 8 TEC a European System of Central Banks (ESCB) and a European Central Bank (ECB) are established. They shall act within the limits of the powers conferred upon them by the TEC and by the treaty level Statute of the ESCB and the ECB.
Legal personality is one crucial aspect of these powers. Pursuant to Article 107(2) TEC, in the latest consolidated version of the treaties, OJ 29.12.2006 C 321 E/88:
2. The ECB shall have legal personality.
***
Internally
We notice that legal personality is accorded to the European Central Bank, not the European System of Central Banks.
Protocol (No 18) on the Statute of the European System of Central Banks and of the European Central Bank (1992) repeats, but also elaborates on the treaty provisions. Article 9.1 of the Statute adds the following, OJ 29.12.2006 C 321 E/259:
Article 9 ESCB Statute
The European Central Bank
9.1. The ECB which, in accordance with Article 107(2) of this Treaty, shall have legal personality, shall enjoy in each of the Member States the most extensive legal capacity accorded to legal persons under its law; it may, in particular, acquire or dispose of movable and immovable property and may be a party to legal proceedings.
9.2. The ECB shall ensure that the tasks conferred upon the ESCB under Article 105(2), (3) and (5) of this Treaty are implemented either by its own activities pursuant to this Statute or through the national central banks pursuant to Articles 12.1 and 14.
9.3. In accordance with Article 107(3) of this Treaty, the decision making bodies of the ECB shall be the Governing Council and the Executive Board.
***
Within the European Community (EC), or more exactly “in each of the Member States” the ECB shall have “the most extensive legal capacity accorded to legal persons under its law”. In other words, the exact scope is determined by and it varies according to the law of the member state.
The Satute mentions two examples, which means that the powers of the ECB to act are not necessarily restricted to them. Internally, the ECB’s legal capacity (to act) includes the following in every member state:
The ECB has the right to acquire and to dispose of property, both movable and immovable.
The other important example is that the ECB may be a party to legal proceedings.
Naturally, the European Central Bank exercises its powers within the limits conferred by the TEC and by the Statute of the ESCB and the ECB (objectives, tasks, substantial and procedural limitations).
***
Internationally
The International Court of Justice has given the following definition of the legal personality of an international organisation “That it is a subject of international law and capable of possessing international rights and duties, and that it has capacity to maintain its rights by bringing international claims” (as quoted in Ian Brownlie: Public International Law; Oxford University Press, 6th Edition, 2003; page 649).
Undoubtedly, the European Central Bank has capacity to act internationally, but subject to limitations. Naturally, the scope of the ECB’s activities is defined by its tasks (functionally). In addition, the ECB’s powers are limited by the competences accorded to the European Community, and in particular the EU Council.
***
International agreements
According to Article 111(1) TEC, formal agreements on an exchange-rate system for the euro in relation to non-Community currencies are concluded by the Council. The Council adopts, adjusts or abandons the central rates of the euro within the exchange-rate system.
The Council may formulate general orientations for exchange-rate policy in relation to non-Community currencies; Article 111(2) TEC.
Pursuant to Article 111(3) TEC, agreements concerning monetary or foreign exchange regime matters are negotiated and concluded by the Council on behalf of the Community. These agreements are binding on the EC, the ECB and the member states. (Both the first and the third paragraph are exceptions to Article 300 on the normal procedures for international agreements.)
The Council decides the international position of the European Community on issues of particular relevance to economic and monetary union (EMU), as well as on EC representation. (Article 111(4) TEC, with references to Articles 99 and 105).
But, in matters directly pertaining to its powers, the European Central Bank has concluded agreements with international organisations. The anti-counterfeiting agreements with Europol and Interpol can be mentioned as examples.
Another example is the Headquarters Agreement between the Government of the Federal Republic of Germany and the ECB concerning the seat of the ECB (29.12.1998):
http://www.ecb.europa.eu/ecb/legal/pdf/en_headquarters_agreement_final.pdf
The Headquarters Agreement in German (original):
http://www.ecb.europa.eu/ecb/legal/pdf/de_headquarters_agreement_f_published.pdf
***
Article 6.2 of the ESCB Statute foresees an international role for the ECB, in the form of participation in international monetary institutions, but subject to the EC positions defined by the Council, as indicated by Article 6.3 (OJ 29.12.2006 C 321 E/258):
Article 6 ESCB Statute
International cooperation
6.1. In the field of international cooperation involving the tasks entrusted to the ESCB, the ECB shall decide how the ESCB shall be represented.
6.2. The ECB and, subject to its approval, the national central banks may participate in international monetary institutions.
6.3. Articles 6.1 and 6.2 shall be without prejudice to Article 111(4) of this Treaty.
***
Clearing and payment systems
ESCB Statute Article 22 confers powers with an international dimension on the European Central Bank:
Article 22 ESCB Statute
Clearing and payment systems
The ECB and national central banks may provide facilities, and the ECB may make regulations, to ensure efficient and sound clearing and payment systems within the Community and with other countries.
***
International relations and transactions
Article 23 of the ESCB Statute authorises the ECB to establish relations with central banks and international (monetary) organisations (first indent) and conduct all types of banking transactions with third countries and international organisations (fourth indent).
Article 23 ESCB Statute
External operations
The ECB and national central banks may:
— establish relations with central banks and financial institutions in other countries and, where
appropriate, with international organisations;
— acquire and sell spot and forward all types of foreign exchange assets and precious metals; the
term ‘foreign exchange asset’ shall include securities and all other assets in the currency of any
country or units of account and in whatever form held;
— hold and manage the assets referred to in this Article;
— conduct all types of banking transactions in relations with third countries and international
organisations, including borrowing and lending operations.
***
Privileges and immunities
Article 40 of the ESCB Statute refers to the Privileges and immunities of the ECB, a reminder of the intergovernmental (international law) roots of the European Central Bank (as part of the framework of the European Union and the European Communities).
Article 40 ESCB Statute
Privileges and immunities
The ECB shall enjoy in the territories of the Member States such privileges and immunities as are necessary for the performance of its tasks, under the conditions laid down in the Protocol on the privileges and immunities of the European Communities.
Annexed to the Treaties establishing the European Community and the European Atomic Energy Community, Protocol (No 36) on the privileges and immunities of the European Communities (1965), accords to the Communities and to the European Investment Bank in the territories of the Member States such privileges and immunities as are necessary for the performance of their tasks;
OJ 29.12.2006 C 321 E/318
Article 23 of Protocol No 36 extends the application to the European Central Bank:
Article 23 Protocol on privileges and immunities
This Protocol shall also apply to the European Central Bank, to the members of its organs and to its staff, without prejudice to the provisions of the Protocol on the Statute of the European System of Central Banks and the European Central Bank.
The European Central Bank shall, in addition, be exempt from any form of taxation or imposition of a like nature on the occasion of any increase in its capital and from the various formalities which may be connected therewith in the State where the bank has its seat. The activities of the Bank and of its organs carried on in accordance with the Statute of the European System of Central Banks and of the European Central Bank shall not be subject to any turnover tax.
-----
The privileges and immunities granted to the European Communities and the European Central Bank are largely comparable with privileges and immunities customary in diplomatic relations, as codified under the aegis of the United Nations in the Vienna Convention on Diplomatic Relations (1961; in force since 1964).
The Vienna Convention can be accessed at:
http://untreaty.un.org/ilc/texts/instruments/english/conventions/9_1_1961.pdf
***
Liability
The principles regarding the European Community’s non-contractual liability apply to damage caused by the European Central Bank or its servants in the performance of their duties; Article 288 TEC. Pursuant to Article 235 TEC, the Court of Justice has jurisdiction.
Ralf Grahn
We take a peek at the ECB’s privileges and immunities.
***
Legal personality
We remember that the European Central Bank is not mentioned among the European Community institutions in Article 7 of the Treaty establishing the European Community (TEC), but according to Article 8 TEC a European System of Central Banks (ESCB) and a European Central Bank (ECB) are established. They shall act within the limits of the powers conferred upon them by the TEC and by the treaty level Statute of the ESCB and the ECB.
Legal personality is one crucial aspect of these powers. Pursuant to Article 107(2) TEC, in the latest consolidated version of the treaties, OJ 29.12.2006 C 321 E/88:
2. The ECB shall have legal personality.
***
Internally
We notice that legal personality is accorded to the European Central Bank, not the European System of Central Banks.
Protocol (No 18) on the Statute of the European System of Central Banks and of the European Central Bank (1992) repeats, but also elaborates on the treaty provisions. Article 9.1 of the Statute adds the following, OJ 29.12.2006 C 321 E/259:
Article 9 ESCB Statute
The European Central Bank
9.1. The ECB which, in accordance with Article 107(2) of this Treaty, shall have legal personality, shall enjoy in each of the Member States the most extensive legal capacity accorded to legal persons under its law; it may, in particular, acquire or dispose of movable and immovable property and may be a party to legal proceedings.
9.2. The ECB shall ensure that the tasks conferred upon the ESCB under Article 105(2), (3) and (5) of this Treaty are implemented either by its own activities pursuant to this Statute or through the national central banks pursuant to Articles 12.1 and 14.
9.3. In accordance with Article 107(3) of this Treaty, the decision making bodies of the ECB shall be the Governing Council and the Executive Board.
***
Within the European Community (EC), or more exactly “in each of the Member States” the ECB shall have “the most extensive legal capacity accorded to legal persons under its law”. In other words, the exact scope is determined by and it varies according to the law of the member state.
The Satute mentions two examples, which means that the powers of the ECB to act are not necessarily restricted to them. Internally, the ECB’s legal capacity (to act) includes the following in every member state:
The ECB has the right to acquire and to dispose of property, both movable and immovable.
The other important example is that the ECB may be a party to legal proceedings.
Naturally, the European Central Bank exercises its powers within the limits conferred by the TEC and by the Statute of the ESCB and the ECB (objectives, tasks, substantial and procedural limitations).
***
Internationally
The International Court of Justice has given the following definition of the legal personality of an international organisation “That it is a subject of international law and capable of possessing international rights and duties, and that it has capacity to maintain its rights by bringing international claims” (as quoted in Ian Brownlie: Public International Law; Oxford University Press, 6th Edition, 2003; page 649).
Undoubtedly, the European Central Bank has capacity to act internationally, but subject to limitations. Naturally, the scope of the ECB’s activities is defined by its tasks (functionally). In addition, the ECB’s powers are limited by the competences accorded to the European Community, and in particular the EU Council.
***
International agreements
According to Article 111(1) TEC, formal agreements on an exchange-rate system for the euro in relation to non-Community currencies are concluded by the Council. The Council adopts, adjusts or abandons the central rates of the euro within the exchange-rate system.
The Council may formulate general orientations for exchange-rate policy in relation to non-Community currencies; Article 111(2) TEC.
Pursuant to Article 111(3) TEC, agreements concerning monetary or foreign exchange regime matters are negotiated and concluded by the Council on behalf of the Community. These agreements are binding on the EC, the ECB and the member states. (Both the first and the third paragraph are exceptions to Article 300 on the normal procedures for international agreements.)
The Council decides the international position of the European Community on issues of particular relevance to economic and monetary union (EMU), as well as on EC representation. (Article 111(4) TEC, with references to Articles 99 and 105).
But, in matters directly pertaining to its powers, the European Central Bank has concluded agreements with international organisations. The anti-counterfeiting agreements with Europol and Interpol can be mentioned as examples.
Another example is the Headquarters Agreement between the Government of the Federal Republic of Germany and the ECB concerning the seat of the ECB (29.12.1998):
http://www.ecb.europa.eu/ecb/legal/pdf/en_headquarters_agreement_final.pdf
The Headquarters Agreement in German (original):
http://www.ecb.europa.eu/ecb/legal/pdf/de_headquarters_agreement_f_published.pdf
***
Article 6.2 of the ESCB Statute foresees an international role for the ECB, in the form of participation in international monetary institutions, but subject to the EC positions defined by the Council, as indicated by Article 6.3 (OJ 29.12.2006 C 321 E/258):
Article 6 ESCB Statute
International cooperation
6.1. In the field of international cooperation involving the tasks entrusted to the ESCB, the ECB shall decide how the ESCB shall be represented.
6.2. The ECB and, subject to its approval, the national central banks may participate in international monetary institutions.
6.3. Articles 6.1 and 6.2 shall be without prejudice to Article 111(4) of this Treaty.
***
Clearing and payment systems
ESCB Statute Article 22 confers powers with an international dimension on the European Central Bank:
Article 22 ESCB Statute
Clearing and payment systems
The ECB and national central banks may provide facilities, and the ECB may make regulations, to ensure efficient and sound clearing and payment systems within the Community and with other countries.
***
International relations and transactions
Article 23 of the ESCB Statute authorises the ECB to establish relations with central banks and international (monetary) organisations (first indent) and conduct all types of banking transactions with third countries and international organisations (fourth indent).
Article 23 ESCB Statute
External operations
The ECB and national central banks may:
— establish relations with central banks and financial institutions in other countries and, where
appropriate, with international organisations;
— acquire and sell spot and forward all types of foreign exchange assets and precious metals; the
term ‘foreign exchange asset’ shall include securities and all other assets in the currency of any
country or units of account and in whatever form held;
— hold and manage the assets referred to in this Article;
— conduct all types of banking transactions in relations with third countries and international
organisations, including borrowing and lending operations.
***
Privileges and immunities
Article 40 of the ESCB Statute refers to the Privileges and immunities of the ECB, a reminder of the intergovernmental (international law) roots of the European Central Bank (as part of the framework of the European Union and the European Communities).
Article 40 ESCB Statute
Privileges and immunities
The ECB shall enjoy in the territories of the Member States such privileges and immunities as are necessary for the performance of its tasks, under the conditions laid down in the Protocol on the privileges and immunities of the European Communities.
Annexed to the Treaties establishing the European Community and the European Atomic Energy Community, Protocol (No 36) on the privileges and immunities of the European Communities (1965), accords to the Communities and to the European Investment Bank in the territories of the Member States such privileges and immunities as are necessary for the performance of their tasks;
OJ 29.12.2006 C 321 E/318
Article 23 of Protocol No 36 extends the application to the European Central Bank:
Article 23 Protocol on privileges and immunities
This Protocol shall also apply to the European Central Bank, to the members of its organs and to its staff, without prejudice to the provisions of the Protocol on the Statute of the European System of Central Banks and the European Central Bank.
The European Central Bank shall, in addition, be exempt from any form of taxation or imposition of a like nature on the occasion of any increase in its capital and from the various formalities which may be connected therewith in the State where the bank has its seat. The activities of the Bank and of its organs carried on in accordance with the Statute of the European System of Central Banks and of the European Central Bank shall not be subject to any turnover tax.
-----
The privileges and immunities granted to the European Communities and the European Central Bank are largely comparable with privileges and immunities customary in diplomatic relations, as codified under the aegis of the United Nations in the Vienna Convention on Diplomatic Relations (1961; in force since 1964).
The Vienna Convention can be accessed at:
http://untreaty.un.org/ilc/texts/instruments/english/conventions/9_1_1961.pdf
***
Liability
The principles regarding the European Community’s non-contractual liability apply to damage caused by the European Central Bank or its servants in the performance of their duties; Article 288 TEC. Pursuant to Article 235 TEC, the Court of Justice has jurisdiction.
Ralf Grahn
Saturday, 25 October 2008
European Central Bank Ic: ESCB books and publications
One of the objectives of this blawg is to suggest reading materials for students of history, politics, economics and law on EU law and related subjects, here the European System of Central Banks (ESCB) and the European Central Bank (ECB), as well as European economic policy and the euro currency more widely.
***
An introductory brochure of a general nature, available in 23 EU languages, is ‘The European Central Bank, the Eurosystem, the European System of Central Banks’ (2nd edition, April 2008). It presents the history of economic and monetary union, the structure and tasks of the European System of Central Banks, monetary policy, the Target2 System, the euro banknotes and coins and banking supervision, and it offers a handy glossary for the general reader. The English version is available at the website of the European Central Bank:
http://www.ecb.int/pub/pdf/other/escb_en.pdf
***
Hanspeter K. Scheller: The European Central Bank ─ History, role and functions (2nd revised edition, 2006). The book is available in 13 languages; for the English version, go to:
http://www.ecb.int/pub/pdf/other/ecbhistoryrolefunctions2006en.pdf
***
The ‘Legal framework of the Eurosystem and the ESCB. ECB legal acts and instruments’ (July 2008), which “contains summaries of the legal acts and instruments constituting the legal framework of the Eurosystem and the ESCB. The publication presents the main legal acts and instruments in a readable form, with references to the official acts, which have been adopted by the ECB and published since the ECB’s establishment in June 1998 up to the end of 2007.”
In other words, this publication contains legal material at a deeper level than the treaty provisions, in the form of readable summaries. Go to:
http://www.ecb.int/pub/pdf/other/legalframeworkeurosystemescb2008en.pdf
***
If you need the (internal) institutional provisions, you might profit from having a handy publication. The ECB’s booklet ‘Institutional provisions’ contains the Statute of the ESCB and the ECB, the Rules of procedure of the Executive Board of the ECB and the Rules of procedure of the General Council of the ECB:
http://www.ecb.europa.eu/pub/pdf/other/ecbinstitutionalprovisions2004en.pdf
***
‘Legal aspects of the European System of Central Banks ─ Liber amicorum Paolo Zamboni Garavelli’ (2005) is a hefty compilation of articles about various legal aspects of European monetary policy:
http://www.ecb.int/pub/pdf/other/legalaspectsescben.pdf
***
European Central Bank: How the euro became our money. A short history of the euro banknotes and coins (unknown date ; 94 pages).
This illustrated history of the euro banknotes and coins is available at:
http://www.ecb.europa.eu/pub/pdf/other/euro_became_our_moneyen.pdf
***
Werner Becker: Der Euro wird zehn (EU Monitor 57, Deutsche Bank Research, 17. Juni 2008; 44 pages), is a detailed analysis, in German, of the successes and disappointments of nearly a decade of the single currency, since 1 January 1999 The strengths and weaknesses of the euro, the potential second world currency, are detailed in the face of approaching financial turmoil, which is going to be the first hard test of the Eurozone.
Available at:
http://www.dbresearch.com/PROD/CIB_INTERNET_EN-PROD/PROD0000000000226658.pdf
***
‘10th Anniversary of the ECB’ is the theme of the Special edition of the Monthly Bulletin (29 May 2008; 158 pages), with a comprehensive overview of monetary policy within the euro area. The English version is available at:
http://www.ecb.int/pub/pdf/other/10thanniversaryoftheecbmb200806en.pdf
***
The European Central Bank: The monetary policy of the ECB (2004; 128 pages), available at:
http://www.ecb.europa.eu/pub/pdf/other/monetarypolicy2004en.pdf
***
There are a number of useful publications on the ECB’s web pages, from the Monthly Bulletin and the handy Monthly Statistics Pocket Book to various specialist books and research papers. Look for Publications at:
http://www.ecb.europa.eu
The latest ECB Monthly Bulletin with economic and monetary developments, articles and euro area statistics (October 2008) is available at:
http://www.ecb.europa.eu/pub/pdf/mobu/mb200810en.pdf
The latest Statistics Pocket Book with macroeconomic data (October 2008):
http://www.ecb.europa.eu/pub/pdf/stapobo/spb200810en.pdf
***
Both long term decisions and the current financial turmoil are reflected in the European Central Bank’s press releases, available at:
http://www.ecb.europa.eu/press/pr/date/2008/html/index.en.html
***
The legal framework of the European Central Bank in its entirety can be accessed through:
http://www.ecb.int/ecb/legal/html/index.en.html
There is a helpful User Guide and links for detailed search.
***
For a quick recap of history, la Banque de France offers a convenient calender of events on the road to monetary union ‘Principales dates de l’Europe monétaire ─ et calendrier prévisionnel’:
http://www.banque-france.fr/fr/eurosys/telechar/europe/calendrier.pdf
***
The Banque de France article ‘Le statut juridique de la monnaie unique’ (an extract from Bulletin de la Banque de France No 108, December 2002) presents an overview of the legal framework of the euro currency:
http://www.banque-france.fr/fr/publications/telechar/bulletin/etu108_2.pdf
***
Deutsche Bundesbank, the national central bank of Germany, has published a fairly detailed overview of economic and monetary union, especially monetary policy. The 83 page publication ‘Die Europäische Wirtschafts- und Währungsunion’ (April 2008) is available at:
http://www.bundesbank.de/download/presse/publikationen/ewwu.pdf
***
The new Eurosystem entrant Malta presents ‘The law of the euro: Constitutive, institutional and external aspect’, by Ken Mifsud Bonnici (published by the Central Bank of Malta, 2008; 34 pages):
http://www.centralbankmalta.org/updates/downloads/pdfs/the_law_of_the_euro_2008.pdf
***
Michael Palmer offers a historical perspective in ‘The Banque central du Luxembourg in the European system of central banks’ (2001), with both national and European ingredients. The book, which contains a portrait of Pierre Werner (of the Werner Plan), is available at:
http://www.bcl.lu/fr/publications/autres_publications/bcl_european_system.pdf
***
The legal framework of the national central bank of Luxembourg is presented in Étienne de Lhoneux at al. ‘La Banque central du Lxembourg’:
http://www.bcl.lu/fr/publications/autres_publications/bcl_presentation_juridique.pdf
***
One example of interlocking national and European legislation is the Bank of Finland publication ‘Legal Provisions’ (2006):
http://www.bof.fi/NR/rdonlyres/0F437D54-9B58-4DA8-B5C4-CDCB3402CC51/0/saados_en.pdf
***
Some readers may be interested in the introduction of the euro currency in new entrants to the Eurosystem. Slovakia is going to be in the news during the last days of this year and at the beginning of 2009. You could start with the Slovakian government’s press release ‘Government approved the National Euro Changeover Plan’ (7 July 2005), with links to Part I and Part II of the Changeover Plan:
http://www.nbs.sk/INDEXA.HTM
You can then monitor further developments and updated plans by looking at the web page on the introduction of the euro at the National Bank of Slovakia.
You can also look for (official legal) opinions of the European Central Bank on various aspects concerning the euro changeover in Slovakia, or more generally at the web pages dedicated to the euro changeover.
Documents on the recent euro changeover (1 January 2007) in Slovenia are found on:
http://www.bsi.si/en/publications.asp?MapaId=717
***
Banco de España presents future perspectives in its conference report S. Fernández & F. Restoy (eds.) ‘Central Banks in the 21st Century’ (2006):
http://www.bde.es/informes/be/bcentral/bcentral_indice.htm
***
Next, this legal blog is going to return to the treaty and other provisions on the European System of Central Banks and the European Central Bank.
Ralf Grahn
***
An introductory brochure of a general nature, available in 23 EU languages, is ‘The European Central Bank, the Eurosystem, the European System of Central Banks’ (2nd edition, April 2008). It presents the history of economic and monetary union, the structure and tasks of the European System of Central Banks, monetary policy, the Target2 System, the euro banknotes and coins and banking supervision, and it offers a handy glossary for the general reader. The English version is available at the website of the European Central Bank:
http://www.ecb.int/pub/pdf/other/escb_en.pdf
***
Hanspeter K. Scheller: The European Central Bank ─ History, role and functions (2nd revised edition, 2006). The book is available in 13 languages; for the English version, go to:
http://www.ecb.int/pub/pdf/other/ecbhistoryrolefunctions2006en.pdf
***
The ‘Legal framework of the Eurosystem and the ESCB. ECB legal acts and instruments’ (July 2008), which “contains summaries of the legal acts and instruments constituting the legal framework of the Eurosystem and the ESCB. The publication presents the main legal acts and instruments in a readable form, with references to the official acts, which have been adopted by the ECB and published since the ECB’s establishment in June 1998 up to the end of 2007.”
In other words, this publication contains legal material at a deeper level than the treaty provisions, in the form of readable summaries. Go to:
http://www.ecb.int/pub/pdf/other/legalframeworkeurosystemescb2008en.pdf
***
If you need the (internal) institutional provisions, you might profit from having a handy publication. The ECB’s booklet ‘Institutional provisions’ contains the Statute of the ESCB and the ECB, the Rules of procedure of the Executive Board of the ECB and the Rules of procedure of the General Council of the ECB:
http://www.ecb.europa.eu/pub/pdf/other/ecbinstitutionalprovisions2004en.pdf
***
‘Legal aspects of the European System of Central Banks ─ Liber amicorum Paolo Zamboni Garavelli’ (2005) is a hefty compilation of articles about various legal aspects of European monetary policy:
http://www.ecb.int/pub/pdf/other/legalaspectsescben.pdf
***
European Central Bank: How the euro became our money. A short history of the euro banknotes and coins (unknown date ; 94 pages).
This illustrated history of the euro banknotes and coins is available at:
http://www.ecb.europa.eu/pub/pdf/other/euro_became_our_moneyen.pdf
***
Werner Becker: Der Euro wird zehn (EU Monitor 57, Deutsche Bank Research, 17. Juni 2008; 44 pages), is a detailed analysis, in German, of the successes and disappointments of nearly a decade of the single currency, since 1 January 1999 The strengths and weaknesses of the euro, the potential second world currency, are detailed in the face of approaching financial turmoil, which is going to be the first hard test of the Eurozone.
Available at:
http://www.dbresearch.com/PROD/CIB_INTERNET_EN-PROD/PROD0000000000226658.pdf
***
‘10th Anniversary of the ECB’ is the theme of the Special edition of the Monthly Bulletin (29 May 2008; 158 pages), with a comprehensive overview of monetary policy within the euro area. The English version is available at:
http://www.ecb.int/pub/pdf/other/10thanniversaryoftheecbmb200806en.pdf
***
The European Central Bank: The monetary policy of the ECB (2004; 128 pages), available at:
http://www.ecb.europa.eu/pub/pdf/other/monetarypolicy2004en.pdf
***
There are a number of useful publications on the ECB’s web pages, from the Monthly Bulletin and the handy Monthly Statistics Pocket Book to various specialist books and research papers. Look for Publications at:
http://www.ecb.europa.eu
The latest ECB Monthly Bulletin with economic and monetary developments, articles and euro area statistics (October 2008) is available at:
http://www.ecb.europa.eu/pub/pdf/mobu/mb200810en.pdf
The latest Statistics Pocket Book with macroeconomic data (October 2008):
http://www.ecb.europa.eu/pub/pdf/stapobo/spb200810en.pdf
***
Both long term decisions and the current financial turmoil are reflected in the European Central Bank’s press releases, available at:
http://www.ecb.europa.eu/press/pr/date/2008/html/index.en.html
***
The legal framework of the European Central Bank in its entirety can be accessed through:
http://www.ecb.int/ecb/legal/html/index.en.html
There is a helpful User Guide and links for detailed search.
***
For a quick recap of history, la Banque de France offers a convenient calender of events on the road to monetary union ‘Principales dates de l’Europe monétaire ─ et calendrier prévisionnel’:
http://www.banque-france.fr/fr/eurosys/telechar/europe/calendrier.pdf
***
The Banque de France article ‘Le statut juridique de la monnaie unique’ (an extract from Bulletin de la Banque de France No 108, December 2002) presents an overview of the legal framework of the euro currency:
http://www.banque-france.fr/fr/publications/telechar/bulletin/etu108_2.pdf
***
Deutsche Bundesbank, the national central bank of Germany, has published a fairly detailed overview of economic and monetary union, especially monetary policy. The 83 page publication ‘Die Europäische Wirtschafts- und Währungsunion’ (April 2008) is available at:
http://www.bundesbank.de/download/presse/publikationen/ewwu.pdf
***
The new Eurosystem entrant Malta presents ‘The law of the euro: Constitutive, institutional and external aspect’, by Ken Mifsud Bonnici (published by the Central Bank of Malta, 2008; 34 pages):
http://www.centralbankmalta.org/updates/downloads/pdfs/the_law_of_the_euro_2008.pdf
***
Michael Palmer offers a historical perspective in ‘The Banque central du Luxembourg in the European system of central banks’ (2001), with both national and European ingredients. The book, which contains a portrait of Pierre Werner (of the Werner Plan), is available at:
http://www.bcl.lu/fr/publications/autres_publications/bcl_european_system.pdf
***
The legal framework of the national central bank of Luxembourg is presented in Étienne de Lhoneux at al. ‘La Banque central du Lxembourg’:
http://www.bcl.lu/fr/publications/autres_publications/bcl_presentation_juridique.pdf
***
One example of interlocking national and European legislation is the Bank of Finland publication ‘Legal Provisions’ (2006):
http://www.bof.fi/NR/rdonlyres/0F437D54-9B58-4DA8-B5C4-CDCB3402CC51/0/saados_en.pdf
***
Some readers may be interested in the introduction of the euro currency in new entrants to the Eurosystem. Slovakia is going to be in the news during the last days of this year and at the beginning of 2009. You could start with the Slovakian government’s press release ‘Government approved the National Euro Changeover Plan’ (7 July 2005), with links to Part I and Part II of the Changeover Plan:
http://www.nbs.sk/INDEXA.HTM
You can then monitor further developments and updated plans by looking at the web page on the introduction of the euro at the National Bank of Slovakia.
You can also look for (official legal) opinions of the European Central Bank on various aspects concerning the euro changeover in Slovakia, or more generally at the web pages dedicated to the euro changeover.
Documents on the recent euro changeover (1 January 2007) in Slovenia are found on:
http://www.bsi.si/en/publications.asp?MapaId=717
***
Banco de España presents future perspectives in its conference report S. Fernández & F. Restoy (eds.) ‘Central Banks in the 21st Century’ (2006):
http://www.bde.es/informes/be/bcentral/bcentral_indice.htm
***
Next, this legal blog is going to return to the treaty and other provisions on the European System of Central Banks and the European Central Bank.
Ralf Grahn
European Central Bank Ib: European System of Central Banks
The European System of Central Banks (ESCB) is composed of the European Central Bank (ECB) and of the national central banks.
***
In addition to the provisions in the Treaty establishing the European Community (TEC), treaty level rules have been set out in a Protocol annexed to the treaty.
Protocol (No 18) on the Statute of the European System of Central Banks and of the European Central Bank (1992) defines the Constitution of the ESCB in Chapter 1, Article 1 (as in the latest consolidated version of the treaties, OJ 29.12.2006 C 321 E/256):
Article 1 ESCB Statute
The European System of Central Banks
1.1. The European System of Central Banks (ESCB) and the European Central Bank (ECB) shall
be established in accordance with Article 8 of this Treaty; they shall perform their tasks and carry
on their activities in accordance with the provisions of this Treaty and of this Statute.
1.2. In accordance with Article 107(1) of this Treaty, the ESCB shall be composed of the ECB
and of the central banks of the Member States (‘national central banks’). The Institut monétaire
luxembourgeois will be the central bank of Luxembourg.
***
Article 107(1) TEC applies to all member states. Consequently the national central banks of all EU member states form part of the ESCB, together with the ECB.
The term Eurosystem is narrower, in that it is applied to the ECB and the national central banks of the countries that have adopted the euro.
***
The 27 EU national central banks are the following:
Austria: Oesterreichische Nationalbank
Belgium: Nationale Bank van België/Banque Nationale de Belgique
Bulgaria: Bulgarian National Bank
Cyprus: Central Bank of Cyprus
Czech Republic: Česká národní banka
Denmark: Danmarks Nationalbank
Estonia: Eesti Pank
Finland: Suomen Pankki - Finlands Bank
France: Banque de France
Germany: Deutsche Bundesbank
Greece: Bank of Greece
Hungary: Magyar Nemzeti Bank
Ireland: Central Bank and Financial Services Authority of Ireland
Italy: Banca d´Italia
Latvia: Latvijas Banka
Lithuania : Lietuvos bankas
Luxembourg : Banque centrale du Luxembourg
Malta: Central Bank of Malta
Netherlands: De Nederlandsche Bank
Poland: Narodowy Bank Polski
Portugal: Banco de Portugal
Romania: Banca Naţională a României
Slovakia: Národná banka Slovenska
Slovenia: Banka Slovenije
Spain: Banco de España
Sweden: Sveriges Riksbank
United Kingdom: Bank of England
Source: European Central Bank (a web page with links to the central banks)
http://www.ecb.europa.eu/home/html/links.en.html
***
On 1 January 2009 Slovakia will join the Eurosystem, but until the end of the year 15 of the national central banks belong to the euro area and 12 countries are outside the eurozone.
Euroland: Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovenia, Spain (15).
Outside the eurozone: Bulgaria, the Czech Republic, Denmark, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, Sweden, United Kingdom (12).
***
Later, we are going to see that the different groups of national central banks have repercussions for the tasks and the decision-making of the ESCB.
The next posts are going to present some reading suggestions for students of history, politics, economics and law, as well as for other interested EU citizens, and to look more closely at the legal framework of the ESCB.
Ralf Grahn
***
In addition to the provisions in the Treaty establishing the European Community (TEC), treaty level rules have been set out in a Protocol annexed to the treaty.
Protocol (No 18) on the Statute of the European System of Central Banks and of the European Central Bank (1992) defines the Constitution of the ESCB in Chapter 1, Article 1 (as in the latest consolidated version of the treaties, OJ 29.12.2006 C 321 E/256):
Article 1 ESCB Statute
The European System of Central Banks
1.1. The European System of Central Banks (ESCB) and the European Central Bank (ECB) shall
be established in accordance with Article 8 of this Treaty; they shall perform their tasks and carry
on their activities in accordance with the provisions of this Treaty and of this Statute.
1.2. In accordance with Article 107(1) of this Treaty, the ESCB shall be composed of the ECB
and of the central banks of the Member States (‘national central banks’). The Institut monétaire
luxembourgeois will be the central bank of Luxembourg.
***
Article 107(1) TEC applies to all member states. Consequently the national central banks of all EU member states form part of the ESCB, together with the ECB.
The term Eurosystem is narrower, in that it is applied to the ECB and the national central banks of the countries that have adopted the euro.
***
The 27 EU national central banks are the following:
Austria: Oesterreichische Nationalbank
Belgium: Nationale Bank van België/Banque Nationale de Belgique
Bulgaria: Bulgarian National Bank
Cyprus: Central Bank of Cyprus
Czech Republic: Česká národní banka
Denmark: Danmarks Nationalbank
Estonia: Eesti Pank
Finland: Suomen Pankki - Finlands Bank
France: Banque de France
Germany: Deutsche Bundesbank
Greece: Bank of Greece
Hungary: Magyar Nemzeti Bank
Ireland: Central Bank and Financial Services Authority of Ireland
Italy: Banca d´Italia
Latvia: Latvijas Banka
Lithuania : Lietuvos bankas
Luxembourg : Banque centrale du Luxembourg
Malta: Central Bank of Malta
Netherlands: De Nederlandsche Bank
Poland: Narodowy Bank Polski
Portugal: Banco de Portugal
Romania: Banca Naţională a României
Slovakia: Národná banka Slovenska
Slovenia: Banka Slovenije
Spain: Banco de España
Sweden: Sveriges Riksbank
United Kingdom: Bank of England
Source: European Central Bank (a web page with links to the central banks)
http://www.ecb.europa.eu/home/html/links.en.html
***
On 1 January 2009 Slovakia will join the Eurosystem, but until the end of the year 15 of the national central banks belong to the euro area and 12 countries are outside the eurozone.
Euroland: Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovenia, Spain (15).
Outside the eurozone: Bulgaria, the Czech Republic, Denmark, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, Sweden, United Kingdom (12).
***
Later, we are going to see that the different groups of national central banks have repercussions for the tasks and the decision-making of the ESCB.
The next posts are going to present some reading suggestions for students of history, politics, economics and law, as well as for other interested EU citizens, and to look more closely at the legal framework of the ESCB.
Ralf Grahn
European Central Bank Ia: Article 107 TEC
A single currency is all very well, but someone has to care for it.
***
Article 7 of the Treaty establishing the European Community (TEC) mentions the institutions of the Community: the European Parliament, the Council, the Commission, the Court of Justice and the Court of Auditors.
The European Central Bank is not mentioned among the Community institutions.
Article 8 TEC (ex Article 4a) sets out the main institutional rules for monetary policy, with the establishment of the European system of central banks and the European Central Bank (in the latest consolidated version of the treaties, OJ 29.12.2006 C 321/47):
Article 8 TEC
A European system of central banks (hereinafter referred to as ‘ESCB’) and a European Central Bank (hereinafter referred to as ‘ECB’) shall be established in accordance with the procedures laid down in this Treaty; they shall act within the limits of the powers conferred upon them by this Treaty and by the Statute of the ESCB and of the ECB (hereinafter referred to as ‘Statute of the ESCB’) annexed thereto.
***
Article 107 TEC (ex Article 106) lays out the basic structure of the European System of Central Banks (ESCB) and the European Central Bank (ECB), OJ 29.12.2006 C 321/88:
Article 107 TEC
1. The ESCB shall be composed of the ECB and of the national central banks.
2. The ECB shall have legal personality.
3. The ESCB shall be governed by the decision-making bodies of the ECB which shall be the Governing Council and the Executive Board.
4. The Statute of the ESCB is laid down in a Protocol annexed to this Treaty.
5. Articles 5.1, 5.2, 5.3, 17, 18, 19.1, 22, 23, 24, 26, 32.2, 32.3, 32.4, 32.6, 33.1(a) and 36 of the Statute of the ESCB may be amended by the Council, acting either by a qualified majority on a recommendation from the ECB and after consulting the Commission or unanimously on a proposal from the Commission and after consulting the ECB. In either case, the assent of the European Parliament shall be required.
6. The Council, acting by a qualified majority either on a proposal from the Commission and after consulting the European Parliament and the ECB or on a recommendation from the ECB and after consulting the European Parliament and the Commission, shall adopt the provisions referred to in Articles 4, 5.4, 19.2, 20, 28.1, 29.2, 30.4 and 34.3 of the Statute of the ESCB.
***
Next, this blawg, founded on the rules of law, is going to take a closer look at the current Article 107 TEC.
Ralf Grahn
***
Article 7 of the Treaty establishing the European Community (TEC) mentions the institutions of the Community: the European Parliament, the Council, the Commission, the Court of Justice and the Court of Auditors.
The European Central Bank is not mentioned among the Community institutions.
Article 8 TEC (ex Article 4a) sets out the main institutional rules for monetary policy, with the establishment of the European system of central banks and the European Central Bank (in the latest consolidated version of the treaties, OJ 29.12.2006 C 321/47):
Article 8 TEC
A European system of central banks (hereinafter referred to as ‘ESCB’) and a European Central Bank (hereinafter referred to as ‘ECB’) shall be established in accordance with the procedures laid down in this Treaty; they shall act within the limits of the powers conferred upon them by this Treaty and by the Statute of the ESCB and of the ECB (hereinafter referred to as ‘Statute of the ESCB’) annexed thereto.
***
Article 107 TEC (ex Article 106) lays out the basic structure of the European System of Central Banks (ESCB) and the European Central Bank (ECB), OJ 29.12.2006 C 321/88:
Article 107 TEC
1. The ESCB shall be composed of the ECB and of the national central banks.
2. The ECB shall have legal personality.
3. The ESCB shall be governed by the decision-making bodies of the ECB which shall be the Governing Council and the Executive Board.
4. The Statute of the ESCB is laid down in a Protocol annexed to this Treaty.
5. Articles 5.1, 5.2, 5.3, 17, 18, 19.1, 22, 23, 24, 26, 32.2, 32.3, 32.4, 32.6, 33.1(a) and 36 of the Statute of the ESCB may be amended by the Council, acting either by a qualified majority on a recommendation from the ECB and after consulting the Commission or unanimously on a proposal from the Commission and after consulting the ECB. In either case, the assent of the European Parliament shall be required.
6. The Council, acting by a qualified majority either on a proposal from the Commission and after consulting the European Parliament and the ECB or on a recommendation from the ECB and after consulting the European Parliament and the Commission, shall adopt the provisions referred to in Articles 4, 5.4, 19.2, 20, 28.1, 29.2, 30.4 and 34.3 of the Statute of the ESCB.
***
Next, this blawg, founded on the rules of law, is going to take a closer look at the current Article 107 TEC.
Ralf Grahn
Friday, 24 October 2008
Euro banknotes and coins VII: More comments on Article 128 TFEU
The previous post mentioned a few brief UK references to Article 128 of the Treaty on the Functioning of the European Union (TFEU). We now turn to legal materials: from Sweden outside the Eurozone, and from inside Euroland Finland, as well as some EU commentaries in book form, to see if the issue of euro banknotes and euro coins has elicited enlightening comments.
***
Lissabonfördraget (Sweden)
Sweden remains outside the Eurozone, despite the lack of an opt-out based on the treaties.
The consultation paper ’Lissabonfördraget’ was the first official Swedish description of the Lisbon Treaty amendments, and it is available at:
http://www.regeringen.se/content/1/c6/09/49/81/107aa077.pdf
It was followed by the Swedish government’s draft ratification bill ‘Lagrådsremiss – Lissabonfördraget’, published 29 May 2008:
http://www.regeringen.se/sb/d/5676/a/106277
The draft bill was given a green light by the Council on Legislation (Lagrådet):
http://www.lagradet.se/yttranden/Lissabonfordraget.pdf
The latest official government view, and now my standard reference for Sweden, is the ratification bill, with the Swedish parliament (Riksdagen) expected to decide on approval in late autumn, on 20 November. The ratification bill, Regeringens proposition 2007/08:168 Lissabonfördraget; 3 July 2008, is available at:
http://www.regeringen.se/content/1/c6/10/84/02/8c96cf3e.pdf
The Swedish government gives a general presentation of the objectives and the tasks of the European Central Bank, including the sole power to authorise the issue of euro banknotes, on page 131:
”Europeiska centralbanken
I artiklarna 112 och 113 i nu gällande EG-fördrag finns institutionella bestämmelser om Europeiska centralbanken (ECB). ECB utgör tillsammans med de nationella centralbankerna det Europeiska centralbankssystemet (ECBS) (artikel 107.1 i EG-fördraget). ECBS:s huvudmål är att upprätthålla prisstabilitet (artikel 105.1 i EG-fördraget). Utan att åsidosätta detta mål ska ECBS stödja den allmänna ekonomiska politiken inom gemenskapen i syfte att bidra till att förverkliga gemenskapens mål.
ECBS leds av ECB:s beslutande organ, dvs. dess råd och direktionen (artikel 107.3 i EG-fördraget). ECB:s direktion består av ordförande, vice ordförande och fyra andra ledamöter (artikel 112.2 i EG-fördraget).
ECB utformar självständigt unionens monetära politik och har ensamrätt på att tillåta sedelutgivning inom gemenskapen (artiklarna 105 och 106 i EG-fördraget). Den ska årligen till Europaparlamentet, rådet, kommissionen och Europeiska rådet överlämna en årsrapport om verksamheten inom ECBS och om den monetära politiken under det föregående och innevarande året (artikel 113.3).
ECB ska inom sitt behörighetsområde höras om varje utkast till unionsrättsakt samt om varje utkast till rättsregler på nationell nivå (artikel 105.4).
Närmare bestämmelser om ECBS och ECB finns i ett protokoll om stadgan för Europeiska centralbankssystemet och Europeiska centralbanken.”
The changing decision-making procedures are discussed on page 184. The Treaty of Lisbon abolishes the so called cooperation procedure. Pursuant to the Lisbon Treaty, the Council adopts measures to harmonise the denominations and technical specifications of euro coins, after consulting the European Parliament and the European Central Bank:
”Proceduren för samarbetsförfarandet finns i artikel 252 i EG-fördraget. Amsterdamfördraget minskade avsevärt tillämpningsområdet för samarbetsförfarandet, vilket för närvarande endast tillämpas på den ekonomiska och monetära politiken (artiklarna 99.5, 102.2, 103.2 och 106.2 i EG-fördraget). Genom Lissabonfördraget upphävs det s.k. samarbetsförfarandet i nuvarande artikel 252 i EG-fördraget (jfr avsnitt 16.2 om förfaranden för antagande av akter och andra bestämmelser). Beslutsförfarandena i de artiklar där samarbetsförfarandet idag tillämpas ändras därför enligt följande.
-----
Rådet kan enligt artikel 106.2 i EG-fördraget vidta åtgärder för att harmonisera valörerna och de tekniska specifikationerna för alla mynt som ska sättas i omlopp. Genom Lissabonfördraget anges att sådana åtgärder ska antas av rådet efter att ha hört Europaparlamentet och Europeiska centralbanken (artikel 106.2 i EUF-fördraget).”
***
Lissabonin sopimus (Finland)
Finland is one of 15 member states currently forming Euroland, or more officially the Eurosystem, the term used by the European Central Bank.
The Finnish ratification bill, ‘Hallituksen esitys Eduskunnalle Euroopan unionista tehdyn sopimuksen ja Euroopan yhteisön perustamissopimuksen muuttamisesta tehdyn Lissabonin sopimuksen hyväksymisestä ja laiksi sen lainsäädännön alaan kuuluvien määräysten voimaansaattamisesta’ (HE 23/2008 vp), presents an overview of economic and monetary policy (Talous- ja rahapolitiikka) on pages 91 to 92.
Article 106 TFEU (ToL), renumbered Article 128 TFEU, is described on page 211. Inserting the word ‘euro’ before banknotes is noted. Consultation of the European Parliament is mentioned, and the provision is said to correspond with Article III-186 of the Constitutional Treaty:
”106 artikla (uusi 128 artikla) sisältää määräykset setelien ja metallirahojen liikkeelle laskemisesta. Artiklan 1 kohtaa täsmennetään siten, että Euroopan keskuspankilla on yksinoikeus nimenomaan eurosetelien liikkeelle laskemiseen yhteisössä. Artiklan 2 kohtaan tehdään lisäys, jonka mukaan neuvoston tulee kuulla myös Euroopan parlamenttia ennen kuin se päättää metallirahojen yksikköarvojen ja teknisten määritelmien yhdenmukaistamisesta. Määräys vastaa perustuslakisopimuksen III-186 artiklaa.”
http://www.finlex.fi/fi/esitykset/he/2008/20080023.pdf
The Swedish language version of the ratification bill ‘Regeringens proposition till Riksdagen med förslag om godkännande av Lissabonfördraget om ändring av fördraget om Europeiska unionen och fördraget om upprättandet av Europeiska gemenskapen och till lag om sättande i kraft av de bestämmelser i fördraget som hör till området för lagstiftningen’ (RP 23/2008 rd), offers the same general remarks on economic and monetary policy on pages 93 to 94. The detailed remarks, Article by Article, under ’Ekonomisk och monetär politik’ contain the same description of Article 106 TFEU (ToL), the future Article 128 TFEU as in Finnish, on page 214:
”Artikel 106 (blivande artikel 128) innehåller bestämmelser om utgivning av eurosedlar och euromynt. Punkt 1 i artikeln precisera så att Europeiska centralbanken har ensamrätt att ge ut just eurosedlar i gemenskapen. Till artikel 106.2 fogas ett tillägg, enligt vilket rådet även ska höra Europaparlamentet innan det beslutar om harmonisering av valörerna och de tekniska specifikationerna för mynt. Bestämmelsen motsvarar artikel III-186 i det konstitutionella fördraget.”
The ratification bill in Swedish can be accessed at:
http://www.finlex.fi/sv/esitykset/he/2008/20080023.pdf
***
de Poncins
Étienne de Poncins offers a few general comments on EU economic governance and budget matters, ‘La gouvernance économique et les questions budgétaires’ in his ‘Le traité de Lisbonne en 27 clés’ (Éditions Lignes de Repères, 2008), pages 245─251, but nothing specific on Article 128 TFEU.
***
Fischer
‚Der Vertrag von Lissabon‘, by Klemens H. Fischer (Nomos, Stämpfli Verlag & Verlag Österreich, 2008), traces the amendments Article by Article; here on page 271. He refers to the amendments according to Article 2, point 92, of the original Treaty of Lisbon, but he mistakenly remarks:
„Das Anhörungsverfahren de lege lata wird (cf. Absatz 2) durch das Zustimmungsverfahren ersetzt.“
The other amendments are editorial (horizontal).
***
Priollaud and Siritzky
François-Xavier Priollaud and David Siritzky offer a short introductory explanation on economic and monetary policy (pages 246 and 247). They succinctly present the main features of the chapet on monetary policy (La politique monétaire) on pages 254 an 255 in their book ‘Le traité de Lisbonne – Commentaire, article par article, des nouveaux traités européens (TUE et TFUE)’ (La Documentation française, Paris, 2008). They offer the following description of the powers of the European Parliament, but they do not find it necessary to mention the move to the consultation procedure concerning Article 128(2) TFUE (although the amendments are indicated correctly in the text of the Article):
« La modification des pouvoirs du Parlement européen
La généralisation de la procédure legislative renforce le rôle du Parlement européen en ce qui concerne la modification de certaines dispositions des statuts du SEBC et de la BCE (art. 129 TFUE) et pour l’adoption des mesures nécessaires à l’usage de l’euro (art. 133 TFUE). Les pouvoirs du Parlement sont en revanche diminués par rapport à la situation actuelle en matière de contrôle prudentiel des établisseents et marchés financiers (art. 127 § 6 TFUE). Il ne sera que consulté (comme la BCE), alors que son avis conforme était jusq’à présent requis par l’art. 105 TCE. L’unanimité est en outre maintenue sur ce point. »
***
Consultation procedure
Measures to harmonise the denominations and technical specifications of euro coins is a detail, but the intergovernmental character of economic policy and the foundations of monetary policy is striking.
In Article 128 TFEU, the European Parliament is downgraded, consulted (as the ECB).
In case someone wants to reflect on the consultation procedure (and other decision-making procedures), Martin Gellermann offers a description in Rudolf Streinz (Hrsgb.): EUV/EGV Vertrag über die Europäische Union und Vertrag zur Gründung der Europäischen Gemeinschaft (C.H.Beck, 2003). I quote the beginning of Konsultations- oder Anhörungsverfahren (page 2204):
„Als Ursprungsmodell für eine Beteiligung des Europäischen Parlaments am Prozess der gemeinschaftlichen Rechtsetzung erscheint das Konsultations- oder Anhörungsverfahren in dem der Kommission das Initiativrecht, dem Parlament eine Beratungsbefugnis und dem Rat das alleinige Entscheidungsrecht gebührt.“
Ralf Grahn
***
Lissabonfördraget (Sweden)
Sweden remains outside the Eurozone, despite the lack of an opt-out based on the treaties.
The consultation paper ’Lissabonfördraget’ was the first official Swedish description of the Lisbon Treaty amendments, and it is available at:
http://www.regeringen.se/content/1/c6/09/49/81/107aa077.pdf
It was followed by the Swedish government’s draft ratification bill ‘Lagrådsremiss – Lissabonfördraget’, published 29 May 2008:
http://www.regeringen.se/sb/d/5676/a/106277
The draft bill was given a green light by the Council on Legislation (Lagrådet):
http://www.lagradet.se/yttranden/Lissabonfordraget.pdf
The latest official government view, and now my standard reference for Sweden, is the ratification bill, with the Swedish parliament (Riksdagen) expected to decide on approval in late autumn, on 20 November. The ratification bill, Regeringens proposition 2007/08:168 Lissabonfördraget; 3 July 2008, is available at:
http://www.regeringen.se/content/1/c6/10/84/02/8c96cf3e.pdf
The Swedish government gives a general presentation of the objectives and the tasks of the European Central Bank, including the sole power to authorise the issue of euro banknotes, on page 131:
”Europeiska centralbanken
I artiklarna 112 och 113 i nu gällande EG-fördrag finns institutionella bestämmelser om Europeiska centralbanken (ECB). ECB utgör tillsammans med de nationella centralbankerna det Europeiska centralbankssystemet (ECBS) (artikel 107.1 i EG-fördraget). ECBS:s huvudmål är att upprätthålla prisstabilitet (artikel 105.1 i EG-fördraget). Utan att åsidosätta detta mål ska ECBS stödja den allmänna ekonomiska politiken inom gemenskapen i syfte att bidra till att förverkliga gemenskapens mål.
ECBS leds av ECB:s beslutande organ, dvs. dess råd och direktionen (artikel 107.3 i EG-fördraget). ECB:s direktion består av ordförande, vice ordförande och fyra andra ledamöter (artikel 112.2 i EG-fördraget).
ECB utformar självständigt unionens monetära politik och har ensamrätt på att tillåta sedelutgivning inom gemenskapen (artiklarna 105 och 106 i EG-fördraget). Den ska årligen till Europaparlamentet, rådet, kommissionen och Europeiska rådet överlämna en årsrapport om verksamheten inom ECBS och om den monetära politiken under det föregående och innevarande året (artikel 113.3).
ECB ska inom sitt behörighetsområde höras om varje utkast till unionsrättsakt samt om varje utkast till rättsregler på nationell nivå (artikel 105.4).
Närmare bestämmelser om ECBS och ECB finns i ett protokoll om stadgan för Europeiska centralbankssystemet och Europeiska centralbanken.”
The changing decision-making procedures are discussed on page 184. The Treaty of Lisbon abolishes the so called cooperation procedure. Pursuant to the Lisbon Treaty, the Council adopts measures to harmonise the denominations and technical specifications of euro coins, after consulting the European Parliament and the European Central Bank:
”Proceduren för samarbetsförfarandet finns i artikel 252 i EG-fördraget. Amsterdamfördraget minskade avsevärt tillämpningsområdet för samarbetsförfarandet, vilket för närvarande endast tillämpas på den ekonomiska och monetära politiken (artiklarna 99.5, 102.2, 103.2 och 106.2 i EG-fördraget). Genom Lissabonfördraget upphävs det s.k. samarbetsförfarandet i nuvarande artikel 252 i EG-fördraget (jfr avsnitt 16.2 om förfaranden för antagande av akter och andra bestämmelser). Beslutsförfarandena i de artiklar där samarbetsförfarandet idag tillämpas ändras därför enligt följande.
-----
Rådet kan enligt artikel 106.2 i EG-fördraget vidta åtgärder för att harmonisera valörerna och de tekniska specifikationerna för alla mynt som ska sättas i omlopp. Genom Lissabonfördraget anges att sådana åtgärder ska antas av rådet efter att ha hört Europaparlamentet och Europeiska centralbanken (artikel 106.2 i EUF-fördraget).”
***
Lissabonin sopimus (Finland)
Finland is one of 15 member states currently forming Euroland, or more officially the Eurosystem, the term used by the European Central Bank.
The Finnish ratification bill, ‘Hallituksen esitys Eduskunnalle Euroopan unionista tehdyn sopimuksen ja Euroopan yhteisön perustamissopimuksen muuttamisesta tehdyn Lissabonin sopimuksen hyväksymisestä ja laiksi sen lainsäädännön alaan kuuluvien määräysten voimaansaattamisesta’ (HE 23/2008 vp), presents an overview of economic and monetary policy (Talous- ja rahapolitiikka) on pages 91 to 92.
Article 106 TFEU (ToL), renumbered Article 128 TFEU, is described on page 211. Inserting the word ‘euro’ before banknotes is noted. Consultation of the European Parliament is mentioned, and the provision is said to correspond with Article III-186 of the Constitutional Treaty:
”106 artikla (uusi 128 artikla) sisältää määräykset setelien ja metallirahojen liikkeelle laskemisesta. Artiklan 1 kohtaa täsmennetään siten, että Euroopan keskuspankilla on yksinoikeus nimenomaan eurosetelien liikkeelle laskemiseen yhteisössä. Artiklan 2 kohtaan tehdään lisäys, jonka mukaan neuvoston tulee kuulla myös Euroopan parlamenttia ennen kuin se päättää metallirahojen yksikköarvojen ja teknisten määritelmien yhdenmukaistamisesta. Määräys vastaa perustuslakisopimuksen III-186 artiklaa.”
http://www.finlex.fi/fi/esitykset/he/2008/20080023.pdf
The Swedish language version of the ratification bill ‘Regeringens proposition till Riksdagen med förslag om godkännande av Lissabonfördraget om ändring av fördraget om Europeiska unionen och fördraget om upprättandet av Europeiska gemenskapen och till lag om sättande i kraft av de bestämmelser i fördraget som hör till området för lagstiftningen’ (RP 23/2008 rd), offers the same general remarks on economic and monetary policy on pages 93 to 94. The detailed remarks, Article by Article, under ’Ekonomisk och monetär politik’ contain the same description of Article 106 TFEU (ToL), the future Article 128 TFEU as in Finnish, on page 214:
”Artikel 106 (blivande artikel 128) innehåller bestämmelser om utgivning av eurosedlar och euromynt. Punkt 1 i artikeln precisera så att Europeiska centralbanken har ensamrätt att ge ut just eurosedlar i gemenskapen. Till artikel 106.2 fogas ett tillägg, enligt vilket rådet även ska höra Europaparlamentet innan det beslutar om harmonisering av valörerna och de tekniska specifikationerna för mynt. Bestämmelsen motsvarar artikel III-186 i det konstitutionella fördraget.”
The ratification bill in Swedish can be accessed at:
http://www.finlex.fi/sv/esitykset/he/2008/20080023.pdf
***
de Poncins
Étienne de Poncins offers a few general comments on EU economic governance and budget matters, ‘La gouvernance économique et les questions budgétaires’ in his ‘Le traité de Lisbonne en 27 clés’ (Éditions Lignes de Repères, 2008), pages 245─251, but nothing specific on Article 128 TFEU.
***
Fischer
‚Der Vertrag von Lissabon‘, by Klemens H. Fischer (Nomos, Stämpfli Verlag & Verlag Österreich, 2008), traces the amendments Article by Article; here on page 271. He refers to the amendments according to Article 2, point 92, of the original Treaty of Lisbon, but he mistakenly remarks:
„Das Anhörungsverfahren de lege lata wird (cf. Absatz 2) durch das Zustimmungsverfahren ersetzt.“
The other amendments are editorial (horizontal).
***
Priollaud and Siritzky
François-Xavier Priollaud and David Siritzky offer a short introductory explanation on economic and monetary policy (pages 246 and 247). They succinctly present the main features of the chapet on monetary policy (La politique monétaire) on pages 254 an 255 in their book ‘Le traité de Lisbonne – Commentaire, article par article, des nouveaux traités européens (TUE et TFUE)’ (La Documentation française, Paris, 2008). They offer the following description of the powers of the European Parliament, but they do not find it necessary to mention the move to the consultation procedure concerning Article 128(2) TFUE (although the amendments are indicated correctly in the text of the Article):
« La modification des pouvoirs du Parlement européen
La généralisation de la procédure legislative renforce le rôle du Parlement européen en ce qui concerne la modification de certaines dispositions des statuts du SEBC et de la BCE (art. 129 TFUE) et pour l’adoption des mesures nécessaires à l’usage de l’euro (art. 133 TFUE). Les pouvoirs du Parlement sont en revanche diminués par rapport à la situation actuelle en matière de contrôle prudentiel des établisseents et marchés financiers (art. 127 § 6 TFUE). Il ne sera que consulté (comme la BCE), alors que son avis conforme était jusq’à présent requis par l’art. 105 TCE. L’unanimité est en outre maintenue sur ce point. »
***
Consultation procedure
Measures to harmonise the denominations and technical specifications of euro coins is a detail, but the intergovernmental character of economic policy and the foundations of monetary policy is striking.
In Article 128 TFEU, the European Parliament is downgraded, consulted (as the ECB).
In case someone wants to reflect on the consultation procedure (and other decision-making procedures), Martin Gellermann offers a description in Rudolf Streinz (Hrsgb.): EUV/EGV Vertrag über die Europäische Union und Vertrag zur Gründung der Europäischen Gemeinschaft (C.H.Beck, 2003). I quote the beginning of Konsultations- oder Anhörungsverfahren (page 2204):
„Als Ursprungsmodell für eine Beteiligung des Europäischen Parlaments am Prozess der gemeinschaftlichen Rechtsetzung erscheint das Konsultations- oder Anhörungsverfahren in dem der Kommission das Initiativrecht, dem Parlament eine Beratungsbefugnis und dem Rat das alleinige Entscheidungsrecht gebührt.“
Ralf Grahn
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