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At EU level, two Council Regulations make up the legal framework for the use of the euro, namely Council Regulation (EC) No 1103/97 of 17 June 1997 on certain provisions relating to the introduction of the euro [OJ L162, 19.6.97, p.1] and Council Regulation (EC) No 974/98 of 3 May 1998 on the introduction of the euro [OJ L139, 11.5.98, p.1.]. These Regulations are directly binding and applicable in Irish law. Their texts are available on this website.
Some national legislation has also been necessary. This legislation is contained in the Central Bank Act, 1998, the Finance Act, 1998 and the Economic and Monetary Union Act, 1998.
Brief summaries of the two Regulations and of the national legislation are set out below: these are for information only and do not purport to be legal interpretations. The text of the Economic and Monetary Union Act, 1998 is available on this website.
Council Regulation (EC) No 1103/97 of 17 June 1997 on certain provisions relating to the introduction of the euro
This Regulation provides for:
| - | the replacement of the ECU by the euro at a rate of one to one, as from 1 January 1999; |
| - | continuity of contracts, so that the introduction of the euro will not affect obligations under contracts unless parties have agreed otherwise; and |
| - | the technical rules, including rounding rules, for conversions between participating currencies and the euro. |
Council Regulation (EC) No 974/98 of 3 May 1998 on the introduction of the euro
This Regulation provides that:
During the transitional period
The Central Bank Act, 1998 provides for the compatibility of Irish Central Bank
legislation with Articles 107 and 108 of the Treaty on European Union (the
Maastricht Treaty); these deal, respectively, with the requirement that
national legislation, including Central bank Statutues, be compatible with the
Treaty and the Statute of the European System of Central Banks.
The Finance Act, 1998 (section 47 and the second schedule) addressed
implications for the tax system of the introduction of the euro on 1 January
1999.
The Economic and Monetary Union Act, 1998, [No 38 of 1998] provides for certain
matters relating to the introduction of the single currency, the euro. In
particular, it
The Act also provides power for the design, issue, and sale of commemorative
legal tender coinage.
Commencement provisions
Part I (dealing with preliminary and general provisions) and Part III (dealing
with commemorative coins) of the Act came into effect with the signature of the
Act by the President on 13 July 1998. The Act provides that the Minister for
Finance may commence the provisions of Part II by order, and that the Minister
may appoint different commencement dates for different provisions.
The Economic and Monetary Union Act, 1998 (Certain Provisions) (Commencement)
Order, 1998, [S.I. No 279 of 1998] appointed 28 July 1998 as the day on which
sections 5, 6(2), 11(1), 12, 13, 20, 23, 27, 28 and 29 of the Economic and
Monetary Union Act, 1998 came into operation.
Other legislation
The following is a selection of other legislation related to Economic and
Monetary Union:
Articles 102a to 109m of the Treaty on European Union, together with Protocol
No 3 containing the Statute of the European System of Central Banks and the
European Central Bank, are the main Treaty provisions on EMU.
Council Regulation (EC) No 975/98 of 3 May 1998 on denominations and technical
specifications of euro coins intended for circulation [OJ L139, 11.5.98, p.6.]
sets out the denominations and technical specifications of euro coins.
Council Regulation (EC) No 1466/97 of 7 July 1997 on the strengthening of
budgetary positions and the surveillance and co-ordination of economic policies
[OJ L209, 2.8.97, p.1.] and Council Regulation (EC) No 1467/97 of 7 July 1997
on speeding up and clarifying the implementation of the excessive deficit
procedure [OJ L209, 2.8.97, p.6.] and Resolutions of the European Council on
the Stability and Growth Pact and on growth and employment make up the
Stability and Growth Pact.
Council Regulation (EC) No 3603/93 of 13 December 1993 specifying definitions
for the application of the prohibitions referred to in Articles 104 and 104b(1)
of the Treaty [OJ L332, 31.12.93, p.1.] and Council Regulation (EC) No 3604/93
of 13 December 1993 specifying definitions for the application of the
prohibition of privileged access referred to in Article 104a of the Treaty [OJ
L332, 31/12/93, p.4.] set out how the prohibitions on direct financing of the
public sector and privileged access are to operate.
Secretariat
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from 1 January 1999, the currency of participating Member States will be the euro;
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there will be a transitional period from 1 January 1999 to 31 December 2001, during which economic agents will be free to use the euro, but will not be
compelled to do so. Euro notes and coins will not be available until 1 January 2002.
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national currencies will continue to exist as subdivisions of the euro
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as a rule, contracts and other legal instruments denominated in national currency will continue to be performed in national currency, while those denominated in euro will be performed in euro, unless agreed otherwise and
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there will be a number of exceptions to this rule. The most important is that where a payment is to be made by crediting an account, a debtor may pay either in euro or in the national currency of the Member State where the creditor has his account. The payment must be credited by the financial institution to the account in the denomination of the account (i.e whether it is in the national currency or in euro)
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the other exceptions are that Member States may take measures relating to the redenomination of debt and to the unit of account of organised markets (e.g. stock markets) and of payment systems, and may take any other measure the timeframe for which is set out in Community legislation (of which there has been none to date, and none is proposed at present).
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Euro notes and coins will be put into circulation on 1 January 2002: from that date they will be legal tender in all the participating member States.
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From 1 January 2002, references in contracts and legal instruments to participating national currencies will be deemed to be references to euro, at
the appropriate conversion rate, and the legal changeover to the euro will be complete - except that national currency notes and coins may remain legal tender for at most six months (this period may be shortened by national law).
Central Bank Act, 1998
Finance Act, 1998
Economic and Monetary Union Act, 1998
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declares that, by virtue of Regulation 974/98, from 1 January 1999 the currency of the State will be the euro, and the Irish pound will continue to
exist (until 31 December 2001) as a subdivision of the euro;
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where necessary, aligns Irish monetary law with the EU legal framework for
the use of the euro, in particular as regards the putting into circulation etc.
of euro notes and coins in Ireland;
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avails of enabling provisions in the EU legal framework, in particular as
regards the redenomination into euro of outstanding Government debt;
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provides for the Minister for Finance by order to set a date between 1 January 2002 and 30 June 2002 for the withdrawal of legal tender status from
Irish pound notes and coins - a draft of the order must be approved by both
Houses of the Oireachtas before it is made;
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facilitates companies which wish to redenominate their capital structure into
euro before the final changeover to the euro on 1 January 2002; and
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states that from 1 January 1999, the Dublin Interbank Offered Rate (DIBOR)
will be replaced by the Euro Interbank Offered Rate (EURIBOR).
Euro Changeover Board of Ireland
September 1998