The European Parliament,

- having regard to its resolutions of 16 May 1990OJ No. C 149, 18.6.1990, p. 66 and 10 October 1990OJ No. C 284, 12.11.1990, p. 62 on Economic and Monetary Union,

- having regard to the final declaration of 30 November 1990 of the Conference of Parliaments of the European Community in Rome,

- having regard to the conclusions of the European Council, in particular those of 27 and 28 October 1990 and 14 and 15 December 1990,

- having regard to the proposals presented by the Commission, the national governments and the Luxembourg Presidency on the draft treaty for the establishment of Economic and Monetary Union,

A. whereas the preamble to the EEC Treaty contains an undertaking by the Member States to strengthen the unity of their economies and ensure their harmonious development,

B. whereas the credibility of Economic and Monetary Union will depend on its contribution to the general improvement of the well-being of the peoples of the Community,

Institutional balance

1. Recalls its resolution of 10 October 19902 in which it states that, in order to ensure the progressive realization of Economic and Monetary Union, the following requisite measures must be subject to the principle of co-decision between Parliament and Council,

(a) in the monetary sphere:

(i) the legal provisions, conditions and procedures required for the emission of the ECU,

(ii) the statutes of the European Central Bank,

(iii) authorization for the Bank to conclude international agreements and represent the Community in international organizations,

(b) in the economic field:

(i) the management of short-term economic policy,

(ii) economic and social cohesion,

(iii) the guidelines for medium-term economic policies,

(iv) a financial support mechanism,

(v) the structural funds and other financial instruments;

(c) during the transitional period, measures in support of the basic tasks of the Bank relating to monetary and financial relations, the emission of ECU against national currencies and the financial operations of the Community;

2. Recalls that proposals for appointments to the Board of Directors of the Central European Bank must gain the assent of the European Parliament;

The definition of Monetary Union

3. Welcomes the support expressed by several delegations for the definition of monetary union as presented by Parliament, which involves the use of a single currency, the ECU, the pursuit of a single external and internal monetary policy and the institution of a European system of Central Banks embodying an independent European Central Bank;

4. Recalls its resolution of 10 October 1990 in which the tasks of the European Central Bank were spelt out; the main task is the setting up of an internal and external monetary policy designed to underpin monetary stability, within the framework of objectives specified by the Council and Parliament;

5. Proposes that the guidelines for a single exchange policy should be established by the Council on a proposal from the Commission and in close consultation with the European Central Bank and on the basis of co-decision with the Parliament; the implementation of the guidelines for exchange policy will be the responsibility of the Bank;

Economic Union

6. Recalls its resolution of 10 October 1990 in which the substance of economic union is defined in relationship to:

(a) a common economic management policy,

(b) pursuit of the objective of economic and social cohesion through the use of the structural funds and through its recognition as an integral part of all Community policies,

(c) three cooperation instruments (medium-term guidelines, multilateral monitoring and a financial support mechanism),

(d) Community own resources and the financial advantages deriving from the 'right of seigniorage' inherent in the privileged international reserve currency status acquired by the ECU,

(e) the structural funds,

(f) a Community debt with a ceiling corresponding to the total amount of Community investments,

(g) financial compensation between the Member States in the context of budgetary cohesion,

7. Also proposes:

(i) That the Member States should undertake to renounce monetary financing of public deficits and to refuse to allow public authorities any preferential access to the capital market for floating public debt securities,

(ii) A ban on the automatic bailing-out of Member States with budgetary difficulties;

The transitional period

8. Approves the conclusions of the European Council of 27 and 28 October 1990 regarding a short transitional period commencing on 1 January 1994 during which the European Central Bank would be created; the fully operational state of the Bank should mark the beginning of the third stage of EMU; the transitional period will expire on 31 December 1995;

9. Believes that for certain Member States, at their request and taking account of their specific situation, longer time-limits could be set for the adoption of certain provisions relating to Monetary Union;

10. Believes that during the transitional period the following objectives should be attained:

(a) real and nominal convergence of the economic development required to ensure that the advantages of Economic and Monetary Union will be accessible on an equitable basis to all the countries and regions of the Community,

(b) a procedure based on majority decisions for ascertaining the existence of this convergence before going on to the final stage,

(c) the ratification of the amendments to the Treaty by all the Member States,

(d) a commitment to maintain continuity between the present basket-based ECU and the single currency of the final stage in order to favour the immediate use of the ECU,

(e) the decision by all the Member States to accord their own national banks the necessary autonomy to facilitate monetary convergence at European level;

11. Issues a warning that if the results of the conference on the EMU diverge significantly from the rights of co-decision and assent, or from the principle of parallel economic and monetary development, the European Parliament will not be able to ratify them;

12. Instructs its President to forward this resolution to the parliaments and governments of the Member States, the Intergovernmental Conferences and the Commission.