the belgian euro change-over laws carlos rubens senior legal advisor prague, 14/01/2008

The Belgian Euro change-over laws

Carlos RUBENSSenior Legal Advisor

Prague, 14/01/2008

2 / 32 The Belgian euro changeover laws

Historical milestones of the EMU

► Origin : European Union Treaty● Signed on 7 February 1992 in Maastricht● Ratification : Belgian Law dd. 26 November 1992

► 1st Phase (1992-1993) :● Achievement of the single market● Liberalization of capital flows● Prohibition of monetary financing of public authorities

by central banks

► 2nd Phase (1994-1998) :● Economical performances, inflation and public deficit

convergence● Creation of the European Monetary Institute● Preparation of the euro changeover


Historical milestones of the EMU

► 3rd Phase (1999 – now) : introduction of the euro● Independance of the central bank

● Compatibility of the national legislation with the Treaty

● Admission criteria fulfilled

● Euro becomes the single currency having legal tender

a) Transitional period (1999- 2002) :

Euro is a mean of payment and account unit

b) Definitive period :

Introduction of notes and coins (dualcirculation limited in time)Euro is a full currency.


Legal Basis : hierarchy of applicable rules

► European Regulation► Belgian Laws (< Belgian Parliament) – regional

acts► Royal Decrees (< Belgian Government) –

regional decrees► Ministerial Decrees (< Competent Belgian or

regional Minister)


Legal Technique used

Principles :► Simple reference to European rules

● Those rules are dynamic : they may change

● Avoids misunderstandings or imperfect implementation

► Definition of the general principes in overall Laws, broad delegation of competence to the King (= the Government) to further define and implement those principes

► Definition of specific principles in ad hoc Laws


Legal Technique used

Principles (2) :► Delegation of competence to the Minister for the

practical implementation regarding very specific topics

► Delegation of competence to the King to adapt (rounded) amounts in the federal legislation. Regional legislation needs to be adapted by the regional authorities.


European Regulation

► EU Treaty, Statute of the ESCB and of the ECB► Regulation 1103/97 dd. 17 June 1997 :

equivalence of expressions in euro and national currencies, continuity of contracts and other legal instruments, conversion and rounding rules, deletion of the ECU.

► Regulation 974/98 dd. 3 May 1998 : legal framework( “no compulsion, no prohibition”).

► Regulation 975/98 dd. 3 May 1998 : unitary values and technical specifications of coins, definitive replacement of national currencies.


Belgian overall laws

► Law dd. 30 October 1998 : introduction of the euro during the transitional period

► Law dd. 26, 30 June and 3 July 2000 : introduction of the euro

► Law dd. 10 December 2001 : definitive euro changeover.


Overall laws : law dd. 30 October 1998

Scope : introduction of the euro during the transitional period

Timing :► 04/03/1998 : Consultation of the State Council► 19/03/1998 and 08/04/1998 : Advices of the State

Council► 06/04/1998 : Advice of the EMI► 27/04/1998 : Draft Law introduced in the Parliament by

the Government► 05/05/1998 – 20/05/1998 : Draft Law adopted by

different Commissions of the Parliament



Timing (2) :► 11/06/1998 : Draft Law adopted by the Parliament► 12/06/1998 : Draft Law transmitted to the Senate► 17/06/1998 : Decision to examine the Draft Law► 27/10/1998 : Examination of the Draft Law► 29/10/1998 : Decision of the Senate not to amend► 30/10/1998 : Signature by the King► 10/11/1998 : Publication in the Official Journal



Contents :► Conversion and Rounding rules► Reference interest rates► Administrative and fiscal provisions :

● Declaration Forms

● Income Tax (choice of euro or Belgian franc)

● Value Added Tax (choice of euro or Belgian franc)

► Economic and financial provisions :● Financial instruments (currency of securities)

● Financial markets (checks, valuation of foreign currencies)



Contents (2) :● Monetary provisions (coins)● Medals and tokens looking like euro coins (prohibited)● Capital of commercial companies (simplified

conversion and rounding of the social capital)● Dual display of prices● Social security declaration forms (choice of euro or

Belgian franc)● Conversion and exchange by financial institutions

(costless)● Continuity of contracts

► Sanctioning regime► Entry into force



Sample of application Royal Decrees :► 26/11/1998 : reference interest rates► 27/11/1998 : rounding of amounts not to be paid

or accounted► 15/12/1998 : euro changeover in accountancy► 16/12/1998 : adaptation of some public forms► 17/12/1998 : dual display op prices► 17/12/1998 : indication of exchange commissions

related to currency units of the euro zone► 10/01/1999 : approval of convertors of BEF in

EUR and oppositely► Etc...


Overall laws : laws dd. June - July 2000

Scope : Overall conversion of rounded amounts in the federal legislation :A) Law dd. 26/06/2000

B) Law dd. 30/06/2000

C) Law dd. 03/07/2000

Timing :► 27/12/1999 : Consultation of the State Council► 09/02/2000 : Advice of the State Council► 07/04/2000 : Draft Laws introduced in the

Parliament by the Government


Overall laws : laws dd. June – July 2000

Timing (2) :► 25/04/2000 : Draft Laws adopted by the Finance

and Budget Commission of the Parliament► 11/05/2000 : Draft Law adopted by the Parliament► 12/05/2000 : Draft Laws (B) and (C) transmitted

to the Senate► 30/05/2000 : Decision of the Senate not to amend

Draft Law (C)► 22/06/2000 : Draft Law (B) adopted by Senate► (A) 26/06/2000 - (B) 30/06/2000 – (C) 03/07/2000

Signed by the King► 29/07/2000 : Publication in the O.J.



Contents :1. “Twin” laws dd. 26/06/2000 and 30/06/2000 :► Conversion of amounts of fines rounded in

Belgian francs to amounts rounded in euro► Delegation to the King to :

● Replace in the federal legislation specific amounts in Belgian francs by specific amounts in euro

● Convert amounts rounded in Belgian francs to amounts rounded in euro

● Erase the distortions between scale brackets after their conversion to the euro

● The Parliament confirmed all those changesby a law dd. 26/06/2002



Contents (2) :

1. “Twin” laws dd. 26/06/2000 and 30/06/2000 :► Amounts in ecu of European Directives

implemented in Belgian francs are not reconverted but reset in their original amount

► Difference between both laws : only technical legal reasons :

● Law A) : all matters in the field of competence of the Parliament (optional evocation by the Senate is possible)

● Law B) : all matters in the field of competence of both the Parliament and the Senate



Contents (3) :

2. Law dd. 03/07/2000 :► Fields format change of IT-programs of the public

sector allowed (dot and decimal digits)► Conversion and rounding to euro of data stored in

the IT-databases of the public sector allowed, including the deletion of distortions in the scale brackets and conversion differences

► Conversion to euro of taximeters and metrological instruments already allowed as from 01/07/2001.



Sample of application Royal Decrees :► 20/07/2000 : Royal Decrees about the legislation

relating to many federal Ministries► 20/07/2000 : capital of companies► 13/07/2001 : legislation relating to the Ministry of

Economy► 13/07/2001 : rounding and smoothing of wage

scales of judges and Prosecutors► Etc...



Sample of regional legislation :► 18/07/2001 : decree of the Wallon Executive

regarding its legislation► 08/11/2001 : decree of the Brussels Executive

regarding its legislation► 08/11/2001 : decree of the French Speaking

Community Executive regarding its legislation► Etc...


Overall laws : law dd. 10 December 2001

Scope : legal framework related to the introduction of euro banknotes and coins

Timing :► 26/06/2001 : Advice of the ECB► 31/07/2001 : Consultation of the State Council► 14/08/2001 : Advices of the State Council► 22/10/2001 : Draft Law introduced in the Parliament

by the Government► 14/11/2001 : Draft Law adopted by Finance and

Budget Commission of the Parliament



Timing (2) :► 29/11/2001 : Draft Law adopted by the Parliament► 30/11/2001 : Draft Law transmitted to the Senate► 06/12/2001 : Decision not to examine the Draft► 10/12/2001 : Signature by the King► 20/12/2001 : Publication in the Official Journal



Contents :► Abolition of legal tender and exchange of notes

and coins in Belgian francs► Acceptance of notes and coins in euro► Control by NBB of the quality of banknotes in

circulation► Issuance of national coins in euro► Protection of banknotes and coins having legal

tender, prohibition of euro circulation before 2002► Currency of checks written down from 01/01/2002



Sample of application Royal Decrees :► 12/12/2001 : issuance of the first series of coins► 12/12/2001 : special marking of banknotes in

Belgian francs to be withdrawn from circulation after the change-over

► Etc...


Ad-hoc law : law dd. 22 February 1998

Scope : reform of the statute of the central bank (Articles 107-108 Statute ESCB)

Timing :► 09/09/1996 : Consultation of the EMI► 23/12/1996 : Consultation of the State Council► 24/03/1997 : Advice of the State Council► 04/06/1997 : Draft Law introduced in the

Parliament by the Government► 08/07/1997 : Draft Law adopted by the Finance

and Budget Commission of the Parliament► 10/07/1997 : Draft Law adopted by the Parliament


Ad-hoc law : Law dd. 22 February 1998

Timing (2) :► 11/07/1997 : Draft Law transmitted to the Senate► 17/10/1997 : Decision to examine the Draft Law► 08/01/1998 : First examination of the Draft Law► 12/02/1998 : Decision of the Senate not to amend► 22/02/1998 : Signature by the King► 28/03/1998 : Publication in the Official Journal



Principles :► NBB becomes an integral part of the ESCB,

primarily governed by its Statute, and may carry out tasks and transactions within the domain of the ESCB (< decentralisation principle, Article 12.1 ESCB Statute)

► Transfer of decisional competences to the ECB► NBB is allowed to conduct other public tasks

which are not incompatible with the ESCB missions (cf. Article 14.4 ESCB Statute) :

● By itself, or● By a subsidiary controlled by NBB



Principles (2) :► Repartition of NBB net financial income,

accountancy rules, confidentiality regime adapted► NBB is independent from the Executive Power :

● Powers of the Government’s representative limited

● No Government’s authorization anymore to settle of delete NBB branches

● Dismissal of the Governor can be appealed with the Governing Council

● Incompatibility regime between public charges (Legislative or Executive Powers) and member of the organs of the NBB


Final remarks

► The introduction of the euro in Belgium was broadly supported by the population. Nevertheless, the change of the legislation spent a lot of time and, sometimes, occurred on the razor's edge.

● Start as soon as possible

● Organize and plan the actions to be performed

● Use the delegation toolbox without hesitation

● Take care for unpredictable delays

● Look for a broad sociological support, if possible...


Documentation provided as an annex

► Law dd. 22 February 1998 relating to the NBB (+ EMI advice)

► Law dd. 30 October 1998 : introduction of the euro during the transitional period (+ EMI advice)

► Law dd. 26, 30 June and 3 July 2000 : introduction of the euro

► Law dd. 10 December 2001 : definitive euro changeover (+ ECB advice)


Any question ?

► For further information or ancillary questions, do not hesitate to contact Carlos Rubens :

● Postal address : NBB-JU, de Berlaimontlaan 14, B-1000 Brussels

● Phone : 00 32 22 21 42 63

● Fax : 00 32 22 21 31 59

● E-mail : [email protected]

Thank you for your patience !

Carlos RUBENSSenior Legal Advisor

Prague, 14/01/2008

the belgian euro change-over laws carlos rubens senior legal advisor prague, 14/01/2008

Documents

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