1. The Belgian Euro change-over laws Carlos RUBENS Senior Legal Advisor Prague, 14/01/2008

2. The Belgian euro changeover laws 2 / 32 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

3. The Belgian euro changeover laws 3 / 32 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 (dual circulation limited in time) Euro is a full currency.

4. The Belgian euro changeover laws 4 / 32 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)

5. The Belgian euro changeover laws 5 / 32 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

6. The Belgian euro changeover laws 6 / 32 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.

7. The Belgian euro changeover laws 7 / 32 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.

8. The Belgian euro changeover laws 8 / 32 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.

9. The Belgian euro changeover laws 9 / 32 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

10. The Belgian euro changeover laws 10 / 32 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

11. The Belgian euro changeover laws 11 / 32 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)

12. The Belgian euro changeover laws 12 / 32 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

13. The Belgian euro changeover laws 13 / 32 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...

14. The Belgian euro changeover laws 14 / 32 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

15. The Belgian euro changeover laws 15 / 32 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.

16. The Belgian euro changeover laws 16 / 32 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 changes by a law dd. 26/06/2002

17. The Belgian euro changeover laws 17 / 32 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

18. The Belgian euro changeover laws 18 / 32 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.

19. The Belgian euro changeover laws 19 / 32 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...

20. The Belgian euro changeover laws 20 / 32 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...

21. The Belgian euro changeover laws 21 / 32 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

22. The Belgian euro changeover laws 22 / 32 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

23. The Belgian euro changeover laws 23 / 32 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

24. The Belgian euro changeover laws 24 / 32 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...

25. The Belgian euro changeover laws 25 / 32 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

26. The Belgian euro changeover laws 26 / 32 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

27. The Belgian euro changeover laws 27 / 32 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

28. The Belgian euro changeover laws 28 / 32 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

29. The Belgian euro changeover laws 29 / 32 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...

30. The Belgian euro changeover laws 30 / 32 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)

31. The Belgian euro changeover laws 31 / 32 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

32. Thank you for your patience ! Carlos RUBENS Senior Legal Advisor Prague, 14/01/2008