1. Euro changeover: the Belgian experience (1996 - 2002) Carlos RUBENS Senior Legal Advisor Brussels, 14/04/2008

2. The Belgian euro changeover laws 2 / 14 Main milestones and steps... ► Starts on 26 February 1992 (Ratification by Belgian Parliament of the Treaty of Maastricht) ► 1992-1993 : achievement of the single market ► 1994-1998 : economical convergence, preparation of (cashless) euro changeover ► 1999-2001 : preparation of cash euro changeover and definitive introduction of euro in legislation ► No big bang scenario !

3. The Belgian euro changeover laws 3 / 14 The first mood... ► No experience: very new stuff ! - but important steering by EU (and ECB and other NCBs) ► Replacing one exchange standard for another one: sounds easy ! But... ► So many different aspects of money involved in the current life: lots, lots of work ! ► -> Where to begin with ?

4. The Belgian euro changeover laws 4 / 14 Procedure ► First choice: big bang vs. dual introduction ? (Belgium and the other NCBs of the "first wave": no choice: dual introduction currency in 1999, notes and coins in 2002 - see also decision of Madrid in 2005). ► Political and social choices: wide consultations vs. strong political guidance ? Soft vs hard law. (Belgium: very wide consultations of all interested social, economical and political groups and lobbies) ► Importance of the timing (Belgium: national changeover plan dd. 1996, overall Act in October 1998, changeover on Januari 1999 !)

5. The Belgian euro changeover laws 5 / 14 Basic rules ► From scratch: Belgian franc = peculiar expression of euro (following a fix, non decimal exchange rate) ► Consequences: ● continuity of contracts and obligations ● free "exchange" of assets in national currency against assets in euros ● free exchange of notes and coins ? ► Importance of appropriate sanctions !

6. The Belgian euro changeover laws 6 / 14 Points of interest: changeover ► Conversions: double display of prices ► Rounding rules: coherence ● totalisation of amounts ● small unit tariffs ● amounts forthcoming from EU regulations ● rounded amounts : acts and decrees, minimum capital of companies, fines... ► Interest rates: replacement rules ► Transfer of competences from NCB to ECB

7. The Belgian euro changeover laws 7 / 14 Points of interest: changeover (2) ► Instruments formerly issued: ● securities (bonds, shares): validity limit ? ● means of payment (check, letter of exchange): validity limit ? ● stamps... : validity limit ?

8. The Belgian euro changeover laws 8 / 14 Points of interest: cash changeover ► Euro: before cash introduction = abstract ► Legal tender: ● withdrawal of local notes and coins: by whom, how much, price ? ● dual circulation: how long ? No return of cash in local currency ● expiration date of legal tender of local cash ● withdrawal by central bank: how long ? ● automatic vending machines, parking machines: dual circulation ?

9. The Belgian euro changeover laws 9 / 14 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

10. The Belgian euro changeover laws 10 / 14 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. ► Law dd. 22 February 1998 : reform of the statute of the central bank (Articles 107-108 Statute ESCB) Belgian specific laws

11. The Belgian euro changeover laws 11 / 14 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.

12. The Belgian euro changeover laws 12 / 14 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.

13. The Belgian euro changeover laws 13 / 14 Some advices... ► Be pragmatical ► Do not hesitate to ask for experience or advice ► Make use of our address book...

14. The Belgian euro changeover laws 14 / 14 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 : carlos.rubens@nbb.be

15. Thank you for your patience ! Carlos RUBENS Senior Legal Advisor Brussels, 14/04/2008