The Belgian Euro change-over laws Carlos RUBENS Senior Legal Advisor Prague, 14/01/2008
Dec 19, 2015
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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
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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.
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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)
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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
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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.
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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.
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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.
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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
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Overall laws : law dd. 30 October 1998
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
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Overall laws : law dd. 30 October 1998
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)
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Overall laws : law dd. 30 October 1998
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
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Overall laws : law dd. 30 October 1998
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...
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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
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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.
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Overall laws : laws dd. June – July 2000
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
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Overall laws : laws dd. June – July 2000
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
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Overall laws : laws dd. June – July 2000
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.
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Overall laws : laws dd. June – July 2000
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...
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Overall laws : laws dd. June – July 2000
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...
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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
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Overall laws : law dd. 10 December 2001
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
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Overall laws : law dd. 10 December 2001
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
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Overall laws : law dd. 10 December 2001
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...
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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
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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
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Ad-hoc law : law dd. 22 February 1998
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
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Ad-hoc law : law dd. 22 February 1998
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
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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...
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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)
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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]