Text of EU Statement on Conversion to Euro on Jan.

1, 1999
Sep 26 1998 13:26

Vienna, Sept. 26 (Bloomberg) -- Following is the text of an European Union statement concerning the
currency conversion rates for countries adopting the euro. The statement was released by EU finance
ministers and central bankers during their weekend meeting.

‘ ‘ In accordance with article 109L.4 of the Treaty, the irrevocable conversion rates for the euro will be
adopted by the Council, acting with the unanimity of the Member States without a derogation, effective as
of Jan. 1, 1999, on a proposal from the Commission and after consultation of the European Central Bank.

``Following the Joint Communiqué of May 2, 1998, on the determination of the irrevocable conversion
rates for the euro, and to ensure clarity for the markets in the run-up to Stage 3, the Ministers of the
Member States adopting the euro as their single currency, the Governors of the Central Banks of these
Member States, the European Central Bank and the European Commission have agreed the following
timetable and procedures for fixing the irrevocable conversion rates for the euro at the beginning of Stage
3 of monetary union.

``On Dec. 31, 1998, following the regular central bank concertation procedure at 11:30 a.m. central
European time, and in line with the existing procedure explained in the technical annex of the Joint
Communiqué of May 2, the Commission will calculate the final official ECU exchange rates for the
participating countries. The Commission will propose these rates for adoption by the Council as the
irrevocable conversion rates for the euro. This proposal will be made public immediately after adoption by
the Commission.

``In the afternoon of Dec. 31, 1998, following consultation of the ECB, the Council will adopt the
Regulation on the irrevocable conversion rates for the euro. This Regulation will take legal effect from
00:00 hours Jan. 1, 1999. The Regulation will be published in the Official Journal of the European
Communities on Dec. 31, 1998.''

--Simon Packard in Vienna/jgn

Story illustration: ERM <Go> to track European currencies in

the exchange-rate mechanism.

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