Economic and Monetary Union Act 1998

PART I Preliminary and General

1 Short title and commencement.

1.—(1) This Act may be cited as the Economic and Monetary Union Act, 1998.

(2) Part II shall come into operation on such day or days as the Minister may appoint by order or orders, either generally or with reference to any particular purpose or provision, and different days may be so appointed for different purposes or different provisions of this Act.

2 Interpretation (generally).

2.—(1) In this Act “the Minister” means the Minister for Finance.

(2) In this Act—

(a) a reference to a Part or section is to a Part or section of this Act, unless it is indicated that reference to some other enactment is intended, and

(b) a reference to a subsection, paragraph or subparagraph is a reference to a subsection, paragraph or subparagraph of the provision in which the reference occurs unless it is indicated that a reference to some other provision is intended.

3 Expenses.

3.—The expenses incurred by the Minister in the administration of this Act shall, to such extent as may be sanctioned by the Minister, be paid out of moneys provided by the Oireachtas except where otherwise provided for in this Act.

4 Laying of regulations and orders.

4.—Every regulation and order made under this Act (other than an order under section 1(2), 9 or 15) shall be laid before each House of the Oireachtas as soon as may be after it is made and, if a resolution annulling the regulation or order is passed by either such House within the next 21 days on which that House has sat after the regulation or order is laid before it, the regulation or order shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.

PART II Economic and Monetary Union

Chapter I General

5 Interpretation (Part II).

5.—(1) In this Part—

“the Act of 1969” means the Decimal Currency Act, 1969;

“conversion rate” means the irrevocably fixed conversion rate adopted for the currency of each participating Member State by the Council according to the first sentence of Article 109 1 (4) of the Treaty;

“the Council Regulation of 1998” means Council Regulation (EC) No 974/98 of 3 May 1998 on the introduction of the euro[^(1)];

“euro unit” means the currency unit referred to in the second sentence of Article 2 of the Council Regulation of 1998;

“the Irish pound unit” means the unit of the Irish pound as duly defined on the 31st day of December, 1998;

“participating Member States” means Belgium, Germany, Spain, France, Ireland, Italy, Luxembourg, Netherlands, Austria, Portugal and Finland;

“transitional period” means the period beginning on the 1st day of January, 1999, and ending on the 31st day of December, 2001;

“the Treaty” means the Treaty Establishing the European Community done at Rome on the 25th day of March, 1957 (as amended by the Treaty on European Union done at Maastricht on the 7th day of February, 1992).

(2) A word or expression which is used in this Act and is also used in the Council Regulation of 1998 has, unless the context otherwise requires, the same meaning in this Act as it has in that Regulation.

Chapter II Euro Currency System

6 Introduction of euro currency system.

6.—(1) The Central Bank Act, 1989, is hereby amended by the substitution for section 24 (as amended by section 13 of the Central Bank Act, 1998) of the following:

“24.—By virtue of Council Regulation (EC) No 974/98 of 3 May 1998 on the introduction of the euro, from the 1st day of January, 1999—

(a) the currency of the State is the euro, and

(b) the Irish pound unit (within the meaning of the Economic and Monetary Union Act, 1998) is a subdivision of the euro.”

(2) The Act of 1969 is hereby amended in section 2 by the substitution of the following for subsection (2):

“(2) The Irish pound and the penny shall be legal denominations or units of money in Irish currency.”.

7 Contracts during transitional period.

7.—During the transitional period and notwithstanding section 25 of the Central Bank Act, 1989, contracts may, by virtue of Article 8 of the Council Regulation of 1998, be made, entered into, done and executed in the euro unit notwithstanding the fact that notes and coins denominated in euro or in cent are not in circulation.

Chapter III Legal Tender and Legal Tender Amounts

8 Definition (Chapter III)

8.—In this Chapter “earlier operative date” has the meaning assigned by section 9.

9 Legal tender status of notes and coins denominated in Irish pounds.

9.—(1) Notes and coins denominated in Irish pounds or multiples or subdivisions thereof shall retain legal tender status until the 30th day of June, 2002, or such earlier date (in this Chapter referred to as the “earlier operative date”) as the Minister may specify by order.

(2) The Minister may by order amend or revoke an order under this section before the earlier operative date.

(3) Where it is proposed to make an order under this section, including any order amending or revoking an order to which subsection (1) relates, a draft of the order shall be laid before each House of the Oireachtas and the order shall not be made until a resolution approving of the draft has been passed by each such House.

(4) Section 118(3) of the Central Bank Act, 1989, is hereby repealed with effect from the earlier operative date or, where there is no such date, the 30th day of June, 2002.

10 Legal tender amounts of coins.

10.—(1) No person, other than the Central Bank of Ireland and such persons as may be designated by the Minister by order, shall be obliged to accept more than 50 coins denominated in euro or in cent in any single transaction.

(2) The following provisions are hereby repealed with effect from the earlier operative date or, where there is no such date, the 30th day of June, 2002:

(a) sections 8 to 10 of the Act of 1969,

(b) section 15 of the Decimal Currency Act, 1970.

(3) The Minister may by order amend or revoke an order under this section.

11 Provision and issuance of coins.

11.—(1) The Minister may provide coins denominated in euro or in cent and may set out by order the technical specifications, dimensions, composition and design or designs of such coins subject to such specifications complying with the denominations and technical specifications which the Council lays down in accordance with the second sentence of Article 105a(2) of the Treaty.

(2) Coins provided under subsection (1) shall be issued by the Minister through the Central Bank of Ireland, subject to approval by the European Central Bank of the volume of the issue and, with effect from the commencement of this provision, coins issued under Part III shall be subject to such approval.

(3) Sections 3, 4 and 5 of the Act of 1969 are hereby repealed with effect from the earlier operative date or, where there is no such date, the 30th day of June, 2002.

(4) The Minister may by order amend or revoke an order under this section.

12 Amendment of section 14 (prohibition of making or issuing of coins) of Act of 1969.

12.—Section 14 of the Act of 1969 is hereby amended by the substitution of the following for subsection (1):

“(1) Except coins issued under this Act, the Decimal Currency Act, 1990, and the Economic and Monetary Union Act, 1998, and coins denominated in euro or in cent and issued by one or more of the other participating Member States, no piece of metal or mixed metal of any purported nominal face value whatsoever shall be made or issued in the State as a coin or a token for money or as purporting (whether expressly or by implication) that the holder thereof is entitled to demand any value denoted thereon.”.

13 Expenses of provision of coins.

13.—All sums required for the provision of coins denominated in euro or in cent and provided under section 11 shall be defrayed out of the general fund of the Central Bank and debited therein to the currency reserve.

14 Proceeds of issue of coins.

14.—The proceeds of every issue of coins denominated in euro or in cent and provided under section 11 shall be paid into the general fund of the Central Bank of Ireland and carried therein to the credit of the currency reserve.

Chapter IV Withdrawal of Legal Tender Notes and Coins

15 Calling in of coins.

15.—(1) Subject to subsection (2), the Minister may by order call in coins of any particular composition, date or denomination—

(a) issued under the repealed enactments, or

(b) issued under the Decimal Currency Acts, 1969 to 1990, or

(c) issued under this Act, or

(d) circulating in the State and issued by one or more of the other participating Member States which are comparable to coins issued under this Act,

and the Minister may by order amend or revoke an order under this section.

(2) The Minister shall not make an order under this section which relates to matters within the competence of the European Central Bank by or under paragraph 2 of Article 105a of the Treaty except with the consent of that Bank.

(3) The following shall apply in respect of every order under subsection (1):

(a) the order shall provide for its coming into operation on a particular date (in this subsection referred to as the “withdrawal date”) not being earlier than 6 months after the date of its making,

(b) the order shall be laid before each House of the Oireachtas as soon as may be after it is made and, if a resolution annulling the order is passed by either such House before the withdrawal date, the order shall be annulled accordingly.

(4) Section 12 of the Act of 1969 is hereby repealed.

(5) In this section “repealed enactments” means the Coinage Act, 1926, (including that Act as amended by the Emergency Powers (No. 140) Order, 1942, and by sections 58 and 60 of the Central Bank Act, 1942) or the Coinage Act, 1950.

16 Redemption of coins.

16.—The Act of 1969 is hereby amended by the substitution of the following for section 11:

“11.—The Central Bank may, if it thinks fit so to do, redeem coins—

(a) issued under the repealed enactments, or

(b) issued under the Decimal Currency Acts, 1969 to 1990, or

(c) issued under the Economic and Monetary Union Act, 1998, or

(d) circulating in the State and issued by one or more of the other participating Member States which are comparable to coins issued under the Economic and Monetary Union Act, 1998,

and all sums required for that purpose shall be defrayed out of the general fund of the Central Bank and debited therein to the currency reserve.”.

17 Prohibition of melting down of coins.

17.—Section 15 of the Act of 1969 shall apply to coins issued under this Act and coins circulating in the State and issued by one or more of the other participating Member States which are comparable to coins issued under this Act.

18 Redemption of legal tender notes.

18.—Section 121 of the Central Bank Act, 1989, is hereby amended by the addition of the following subsection after subsection 3:

“(4) The Central Bank may continue to redeem Irish pound notes issued under section 44 of the Central Bank Act, 1971, or any other note which was, immediately prior to the earlier operative date (within the meaning assigned by section 9 of the Economic and Monetary Union Act, 1998) or, where there is no such date, the 30th day of June, 2002, a legal tender note in the State and issued under the Currency Act, 1927, or under any subsequent Act.”.

19 Calling in of legal tender notes.

19.—Section 122 of the Central Bank Act, 1989, is hereby amended by the substitution of “with the authority of the European Central Bank and subject to such conditions as to time, place, manner and order of presentation as the Bank thinks fit” for “subject to such time, place, manner and order of presentation as it thinks fit” and the said section, as so amended, is set out in the Table to this section.

TABLE

122.—The Bank may, with the authority of the European Central Bank and subject to such conditions as to time, place, manner and order of presentation as the Bank thinks fit, call in any legal tender notes issued under this Act, or under the Currency and Central Bank Acts, 1927 to 1971, or any of those Acts, on the terms of paying for such notes on presentation in the same manner as if they were being redeemed under section 121.

Chapter V Miscellaneous

20 Copyright in euro notes and coins.

20.—The Copyright Act, 1963, is hereby amended in section 57 by the insertion of the following subsections after subsection (1):

“(1A) Subsection (1) of this section and Part II of this Act are without prejudice to the copyright of the European Central Bank in legal tender notes denominated in the euro unit.

(1B) This section shall apply to any national face of coins issued under section 11 of the Economic and Monetary Union Act, 1998.”.

21 Modification of forms.

21.—(1) Any form set out in a statute or statutory instrument passed or made before the 1st day of January, 2002, and containing a reference to a sum of money in the Irish pound unit (whether expressly or by reference to section 11 of the Decimal Currency Act, 1970) may be modified by, or with the express permission of, the authority issuing it so as to show also the corresponding amount in the euro unit in accordance with the conversion rate.

(2) Any form set out in a statute or statutory instrument passed or made before the 1st day of January, 2002, which is designed to accommodate references to sums of money wholly or partly in the Irish pound unit (whether expressly or by reference to section 11 of the Decimal Currency Act, 1970) may be modified by, or with the express permission of, the authority issuing it so as to enable it to accommodate references to sums of money wholly or partly in the euro unit.

(3) Subsections (1) and (2) are without prejudice to any other provision authorising the modification of any such form.

22 Interbank offered rate.

22.—As of the 1st day of January, 1999, the rate known as the Dublin Interbank Offered Rate shall be replaced by the rate known as the Euro Interbank Offered Rate.

23 Redenomination of outstanding debt into euro.

23.—(1) The Minister may by order, in respect of one or more than one date and under such terms and conditions as the Minister determines, redenominate into the euro unit all or part of the outstanding debt duly issued by or on behalf of the State under the law of the State and denominated in the Irish pound unit, and the Minister may by order amend or revoke an order under this subsection but shall not revoke an order after its effective date.

(2) (a) (i) The Minister may redenominate into the euro unit all or part of the outstanding debt duly issued by or on behalf of the State and denominated in any national currency unit, where the Member State in the national currency unit of which the debt is denominated has redenominated into the euro unit all or part of its general government debt denominated in its national currency unit.

(ii) The terms and conditions in accordance with which the Minister may effect a redenomination under subparagraph (i) shall be those laid down in the law of the Member State under which the debt was issued.

(iii) Prior notice in the Iris Oifigiúil of an intention to effect a redenomination under subparagraph (i) shall be given by the Minister at least one month in advance of such redenomination.

(b) An issuer of debt other than the State may, under the terms and conditions laid down in an order under subsection (1), as if such issuer were the State, redenominate into the euro unit bonds and other forms of securitised debt negotiable in the capital markets, and money market instruments issued by them under the law of the State and denominated in any national currency unit, but only where the Member State in the national currency unit of which the debt is denominated has redenominated into the euro unit all or part of its general government debt denominated in its national currency unit.

(3) (a) Where, in respect of its borrowing, a State body and all other relevant parties to a facility agreement, denominated in any national currency unit, agree to redenominate into the euro unit the currency of the agreement and agree to redenominate the amounts specified therein and to adjust them to convenient euro-denominated sums, the consent of either or both the Minister and any other Minister of the Government which, but for this subsection, would be duly required shall not be required to such adjustments or to any other consequential adjustments to the agreement concerned arising therefrom or pursuant to the introduction of the euro but only if the aggregate amount of borrowings by the State body concerned, including borrowings by way of negotiable debt instruments, does not exceed the limit (if any) on such borrowings to which a Minister of the Government has already consented.

(b) Where the Minister has issued a guarantee in respect of the borrowings of a State body and the contract in respect of those borrowings is amended pursuant to paragraph (a), the consent of the Minister and of any other Minister of the Government to an equivalent change in the guarantee shall not be required but only if the aggregate amount of the borrowings of the State body concerned, including borrowings by way of negotiable debt instruments, which are already guaranteed by the Minister is not exceeded.

(c) In this section “State body” means a body whose borrowing is subject to the consent of a Minister of the Government.

24 Redenomination of share capital.

24.—(1) In this section and sections 25 and 26—

“articles of association” in the case of a company which is not a company within the meaning of section 2(1) of the Companies Act, 1963, includes its charter, bye-laws or other constituent documents;

“company” means a company within the meaning of section 2(1) of the Companies Act, 1963, and any body corporate within the meaning of section 377(1) of that Act;

“share” includes share of stock in share capital of a company.