A3-0099/94

Resolution on the international dimension of the ECU

The European Parliament,

-having regard to the Commission's White Paper on removing the legal obstacles to the use of the ECU (SEC(92)2472 final - C3-0040/93),

-having regard to its resolutions of 27 October 1993 on EMS plus 1992 Programme: lessons to be drawn for the implementation of EMU and on removing the legal obstacles to the use of the ECU,

-having regard to Rule 148 of its Rules of Procedure,

-having regard to the report of the Committee on Economic and Monetary Affairs and Industrial Policy (A3-0099/94),

A.whereas the transformation of the Community into a regional bloc with a single monetary and exchange policy will influence its role in international cooperation if the process of European integration goes forward as planned by the Treaty on European Union,

B.whereas, as this transformation proceeds, the ECU will gradually during stage three be able to act as a means of payment, a unit of account and a store of value and will therefore have an impact on the functioning of the international monetary system, in particular on the current pre-eminence of the dollar,

C.whereas the benefits of adopting the ECU as the EMU's single currency during stage three of EMU will be:

(a)a reduction in the reserves of the countries of the European Union, since it will no longer be necessary to contain variations in intra-Community parities on the foreign exchange markets,

(b)a reduction in transaction costs for the private sector, since the ECU will become the common currency for exchange operations,

(c)a reduction in the cost of information as a result of using the ECU as a single currency,

(d)a reduction in transaction charges in invoicing for intra-Community trade; this could be the most significant gain,

(e)improved coherence of the single market by making SMEs, which have been prompted to be prudent because of currency fluctuations, free to act, and an improvement in the competitiveness of products for the world market (e.g. Airbus, car industry, etc.),

D.whereas the ECU will facilitate international monetary cooperation, since its adoption during stage three of EMU as the European Union's single currency could transform the current asymmetrical coordination system into a tripolar system based on the US dollar, the yen, and the ECU, which will be more symmetrical because:

(a)the reduction in the number of international partners will facilitate information exchange,

(b)coordination between the three regional blocs will be easier and more efficient,

E.acknowledging that the factors influencing European integration, namely technology, trade and movement of the factors of production plus the globalization of markets have contributed to growing interdependence between the economies of the three main regional blocs - the United States, Japan and the European Union - and to a tripolar world made up of three influence-wielding blocs which is based on three anchor currencies - the dollar, the yen and the ECU - which will call for trade, monetary and financial affairs to be reorganized,

1.Takes the view that the ECU must meet specific criteria to become an international currency acting as a means of payment, unit of account and store of value and expects the following four criteria to be met when the ECU becomes the single currency of stage three:

(a)a stable currency combined with a low rate of inflation,

(b)a high level of confidence in this currency,

(c)the support of a strong, open and sound economy capable of playing a pre-eminent role in international trade, which will be a factor in exchange rate stability,

(d)an appropriate institutional structure in the context of the Treaty on European Union;

2.Is of the opinion that to benefit from the role of the ECU as a store of value, by gradually replacing the dollar by the ECU, the EU should promote:

(a)a unified European financial market,

(b)the enlargement and deepening of the Community,

(c)the monetary and financial stability of its markets;

3.Takes the view also that the confidence placed in the ECU will depend not only on monetary policy but also on the measures to be taken, so that the policy mix can be implemented coherently; 'coherent policy mix' means that the economic policies of the countries of the European Union must be compatible and that their budgetary, taxation and financial policies must be brought into line;

4.Is convinced that the criterion of confidence in the ECU will be met if the process of political union proceeds, and therefore takes the view that it will be possible to increase ECU deposits and borrowing as early as the second stage of EMU if:

(a)opportunities for payment in ECU exist, and also proposes to denominate part of new government debt in ECU,

(b)banks, credit card payment and credit companies (to pay for hotels, travel, travel companies), transport firms and all similar companies facilitate payment of invoices in ECU as early as the second stage of EMU;

5.Proposes that, with a view to assisting the countries of Central and Eastern Europe in their transition to the social market economy, the EMI study the international aspects of an ECU zone established with the following characteristics:

(a)the Council of the EMI and the Governors of the Central Banks of the countries of Central and Eastern Europe wishing to be linked to the ECU would form, pursuant to Article 109f(7), a Supervisory Council for the ECU zone, which would be responsible for the following points (b) and (c),

(b)creation of a reserve fund and a system of convertibility which are guaranteed by reserves held in the currencies of the countries associated with the ECU zone,

(c)creation of an exchange-rate mechanism for currencies associated with the ECU;

6.Takes the view that, if the ECU area is well defined and if the sphere of influence can extend to the EFTA countries and to certain Central European countries, the gains will be increased and costs reduced;

7.Proposes that where certain Central European countries are granted the status of 'other holders' of ECU - firstly because those countries have opted to be linked to a stable currency for their trade with the European Union and secondly because their ECU reserves will grow - preferential relations should be established;

8.Calls on the EMI, in accordance with Article 6.3. of the Protocol on its Statute, to examine the economic and monetary situation of those third countries, taking into account the fact that the process of trade integration would strengthen those countries' relations with the European Union, before the status of 'other holders' is granted to the monetary authorities of those third countries;

9.Questions the EMI as to the economic and financial impact of a monetary reform notice of which is given many years in advance and as to our ability to neutralize the financial speculation to which this type of announcement has given rise;

10.Encourages the four EFTA countries which have applied to join the European Union, which are currently 'other holders' of ECU, to keep their currencies linked to the ECU, thereby creating the world's largest market enjoying monetary stability;

11.Calls for the EMI in cooperation with the Commission, which is responsible for the negotiations with the EFTA countries, to be guided by the EMU convergence criteria, to take account of the specific circumstances of those countries and to urge them to become integrated into the EMU gradually by being anchored to the ECU to a greater extent;

12.Instructs its President to forward this resolution to the Commission, the Council, the Committee of Governors of the Central Banks of the Member States, the governments and parliaments of the Member States and the four applicant States.