Activites

• 1998/05/11 Final act published in Official Journal
• #2087
• 1998/05/01 Council Meeting
• 1998/05/01 End of procedure in Parliament
• 1998/05/01 Act adopted by Council after consultation of Parliament
• 1998/04/30 Decision by Parliament, 1st reading/single reading
  • T4-0233/1998 summary

    In adopting the report by Mr Karl VON WOGAU (PPE, D) by 402 votes to 79, with 27 abstentions, the European Parliament approved the Commission recommendation that the third stage of Economic and Monetary Union begin on 1 January with the eleven Member States which met the necessary criteria, namely: Belgium, Germany, Finland, France, Italy, Ireland, Luxembourg, the Netherlands, Austria, Portugal and Spain. Accordingly, it called for the independent European Central Bank to be founded as soon as possible and for monetary policy sovereignty to be transferred to it on 1 January 1999. Parliament called on the Council to respect its commitments and propose a single President of the European Central Bank at its Summit on 2 May. Parliament's resolution was based on the following points: Eleven Member States met the criteria regarding both inflation rates (below 2%, which was an indicator of price stability) and interest rates (which were well below the reference value of 7.8%). Moreover, none of the countries which had participated in the exchange rate mechanism for at least two years had during that period devalued its currency in relation to the currencies of other Member States; the same was true of the two countries (Italy and Finland) which on 1 January 1999 would have belonged to the exchange rate mechanism for two years. As regards the public deficit, none of the eleven had a deficit exceeding 3%. As regards indebtedness, it was necessary to assess whether all the candidate countries were progressing adequately and sufficiently rapidly towards the reference value of 60% or whether the overall assessment of the economic and budgetary situation of the country concerned permitted a favourable decision. The Commission took the view that none of the candidate countries had an excessive deficit. According to the European Monetary Institute, the trend in overall indebtedness in two countries still gave cause for concern. Parliament therefore insisted that the governments concerned must commit themselves in practical terms to pursue the consolidation process. It called on them likewise to respect strictly the stability and growth pact. Parliament expressed its satisfaction at the positive balance-of-payments situation but stressed that greater integration of markets was needed. It recalled that employment, albeit not a criterion referred to in the Maastricht Treaty, must be taken into account in the overall assessment of the economic situation of the Member States. The high unemployment which existed in most of the 11 countries must be combated, as it represented a threat to the attainment of the principal objectives of EMU. In the context of employment policy, substantially improved occupational mobility and adaptability was of particular importance. To reduce unemployment, investment-induced growth must be buttressed by life-long skills training based on a strengthened education system, structural employment measures and supportive tax/benefit systems. �

• 1998/04/29 Debate in Parliament
  • Debate in Parliament summary

    Welcoming the fact that the criteria defined by the Maastricht Treaty had allowed a culture of stability to develop in Europe, the rapporteur considered that 11 candidate countries had qualified for entry into monetary union. He also stressed that the financial markets were counting on a stable start for the euro at the beginning of the following year and concluded by stating that the single monetary policy also required more harmonised economic and fiscal policy. Commissioner de Silguy firstly looked back at the approach which had led to the launch of EMU. He therefore recalled: - the political will expressed by the European Council since 1995 which had allowed the Member States to improve their public finances and reduce their deficits; - the convergence as a result of which the average deficit of the 11 countries recommended for entry into monetary union had reduced to 2.5%. This had been accompanied by an effective reduction in public debt and interest rates at historically low levels; - the systematic preparation for the introduction of the euro by establishing the euro’s legal framework and the Stability and Growth Pact, and the preparation of the coins and notes. The Commissioner also cited the objectives for the third phase: continuation of the budgetary improvement, the challenge of employment to which the approach developed for EMU should henceforth be applied and the international dimension of the euro and the steps to ensure acceptance of the new currency by everyone. Repeating the words of one speaker, Mr de Silguy concluded that ‘We have made the euro and now we have to make Europe’.

• 1998/04/15 Vote in committee, 1st reading/single reading
  • A4-0130/1998
• 1998/04/03 Committee referral announced in Parliament, 1st reading/single reading
• 1998/03/25 Legislative proposal published
  • COM(1998)1999 summary

    OBJECTIVE: presentation of the European Commission's report on progress towards convergence and the recommendation with a view to the transition to the third stage of economic and monetary union. SUBSTANCE: the Commission report deals with the progress made by the Member States in the fulfilment of their obligations regarding the achievement of economic and monetary union. In accordance with the Treaty this assessment determines whether a high level of convergence has ben achieved, by analysing the extent to which each Member State has satisfied the convergence criteria set in Article 109j of the Treaty. On the basis of this examination and the report of the European Monetary Institute, the Commission recommends to the Council that the following Member States adopt the euro from 1 January 1999: Belgium, Germany, Spain, France, Ireland, Italy, Luxembourg, the Netherlands, Austria, Portugal and Finland. Greece and Sweden have also made progress with regard to convergence. They are called on to continue their efforts so that they can rejoin the initial group of participants in the euro after a new examination of the progress made. This examination will take place in two years, or early if one of these countries so requests. The situation of the United Kingdom and Denmark will be assessed when these countries notify the Council of their intention to participate in the third stage of EMU. It should be noted that the Commission based its recommendation on the following findings and figures: - inflation is at an historic low level: in 1997 average annual inflation fell to 1.6% in the Union (only one country was above this figure); - the improvement in the government deficits is sustainable: the average deficit is 2.4% and in 14 Member States the deficit is 3% or below; - government debt is falling in the euro zone: the average debt is 75% of GDP in 1997 ( it is less than 60% in France, Finland and Luxembourg; in Italy and Belgium it is higher than 100% but has started to fall); - stability in the exchange rate mechanism is excellent: nine currencies have more or less respected the + or - 2.25% fluctuation range; - the long-term interest rates are at an exceptionally low level: in 1997 the average was 5.9% in the eleven countries selected (fourteen Member States had long-term interest rates below the 7.8% reference rate). Lastly, the Commission report stresses : - the importance of the euro zone, which will be one of the main economic and trading blocs in the world with 290 million inhabitants (268 in the United States, 126 in Japan), which corresponds to 5% of the world population (United States 4.6%, Japan 2.2%); a GDP representing 19.4% of world GDP (19.6% for the United States, 7.7% for Japan); foreign trade equivalent to 18.6% of world trade (16.6% for the United States and 8.2% for Japan); - the encouragement which the euro gives to the sustainable nature of growth and employment, the reduction in deficits running in parallel with the net increase in employment. �

Documents

• Legislative proposal published: COM(1998)1999
• Committee report tabled for plenary, 1st reading/single reading: A4-0130/1998
• Debate in Parliament: Debate in Parliament
• Decision by Parliament, 1st reading/single reading: T4-0233/1998

History

(these mark the time of scraping, not the official date of the change)