FINANCIAL PROVISIONS OF THE ESCB
ARTICLE 26
Financial accounts
26.1. The financial year of the ECB and national central banks shall
begin on the first day of January and end on the last day of December.
26.2. The annual accounts of the ECB shall be drawn up by the
Executive Board, in accordance with the principles established by the
Governing Council. The accounts shall be approved by the Governing
Council and shall thereafter be published.
26.3. For analytical and operational purposes, the Executive Board
shall draw up a consolidated balance sheet of the ESCB, comprising
those assets and liabilities of the national central banks that fall within
the ESCB.
26.4. For the application of this Article, the Governing Council shall
establish the necessary rules for standardizing the accounting and
reporting of operations undertaken by the national central banks.
ARTICLE 27
Auditing
27.1. The account of the ECB and national central banks shall be
audited by independent external auditors recommended by the
Governing Council and approved by the Council. The auditors shall
have full power to examine all books and accounts of the ECB and
national central banks and obtain full information about their
transactions.
27.2. The provisions of Article 188c of this Treaty shall only apply to
an examination of the operational efficiency of the management of the
ECB.
ARTICLE 28
Capital of the ECB
28.1. The capital of the ECB, which shall become operational upon its
establishment, shall be ECU 5 000 million. The capital may be
increased by such amounts as may be decided by the Governing
Council acting by the qualified majority provided for in Article 10.3,
within the limits and under the conditions set by the Council under the
procedure laid down in Article 42.
28.2. The national central banks shall be the sole subscribers to and
holders of the capital of the ECB. The subscription of capital shall be
according to the key established in accordance with Article 29.
28.3. The Governing Council, acting by the qualified majority provided
for in Article 10.3, shall determine the extent to which and the form in
which the capital shall be paid up.
28.4. Subject to Article 28.5, the shares of the national central banks in
the subscribed capital of the ECB may not be transferred, pledged or
attached.
28.5. If the key referred to in Article 29 is adjusted, the national central
banks shall transfer among themselves capital shares to the extent
necessary to ensure that the distribution of capital shares
corresponds to the adjusted key. The Governing Council shall
determine the terms and conditions of such transfers.
ARTICLE 29
Key for capital subscription
29.1. When in accordance with the procedure referred to in Article
109l(1) of this Treaty the ESCB and the ECB have been established,
the key for subscription of the ECB's capital shall be established.
Each national central bank shall be assigned a weighting in this key
which shall be equal to the sum of:
- 50% of the share of its respective Member State in the population of
the Community in the penultimate year preceding the establishment of
the ESCB;
- 50% of the share of its respective Member State in the gross
domestic product at market prices of the Community as recorded in the
last five years preceding the penultimate year before the
establishment of the ESCB;
The percentages shall be rounded up to the nearest multiple 0.05
percentage points.
29.2 The statistical data to be used for the application of this Article
shall be provided by the Commission in accordance with the rules
adopted by the Council under the procedure provided for in Article 42.
29.3. The weighting assigned to the national central banks shall be
adjusted every five years after the establishment of the ESCB by
analogy with the provisions laid down in Article 29.1. The adjusted key
shall apply with effect from the first day of the following year.
29.4. The Governing Council shall take all other measures necessary
for the application of this Article.
ARTICLE 30
Transfer of foreign reserve assets to the ECB
30.1. Without prejudice to Article 28, the ECB shall be provided by the
national central banks with foreign reserve assets, other than Member
States' currencies, ECUs, IMF reserve positions and SDRs, up to an
amount equivalent to ECU 50 000 million. The Governing Council shall
decide upon the proportion to be called up by the ECB following its
establishment and the amounts called up at later dates. The ECB shall
have the full right to hold and manage the foreign reserves that are
transferred to it and to use them for the purposes set out in this
Statute.
30.2. The contributions of each national central bank shall be fixed in
proportion to its share in the subscribed capital of the ECB.
30.3. Each national central bank shall be credited by the ECB with a
claim equivalent to its contribution. The Governing Council shall
determine the denomination and remuneration of such claims.
30.4. Further calls of foreign reserve assets beyond the limit set in
Article 30.1. may be effected by the ECB, in accordance with Article
30.2, within the limits and under the conditions set by the Council in
accordance with the procedure laid down in Article 42.
30.5. The ECB may hold and manage IMF reserve positions and SDRs
and provide for the pooling of such assets.
30.6. The Governing Council shall take all other measures necessary
for the application of this Article.
ARTICLE 31
Foreign reserve assets held by national central banks
31.1. The national central banks shall be allowed to perform
transactions in fulfilment of their obligations towards international
organizations in accordance with Article 23.
31.2. All other operations in foreign reserve assets remaining with the
national central banks after the transfers referred to in Article 30, and
Member States' transactions with their foreign exchange working
balances shall, above a certain limit to be established within the
framework of Article 31.3, be subject to approval by the ECB in order to
ensure consistency with the exchange rate and monetary policies of
the Community.
31.3. The Governing Council shall issue guidelines with a view to
facilitating such operations.
ARTICLE 32
Allocation of monetary income of national central banks.
32.1. The income accruing to the national central banks in the
performance of the ESCB's monetary policy function (hereinafter
referred to as "monetary income") shall be allocated at the end of each
financial year in accordance with the provisions of this Article.
32.2. Subject to Article 32.3, the amount of each national central bank's
monetary income shall be equal to its annual income derived from its
assets held against notes in circulation and deposit liabilities to credit
institutions. These assets shall be earmarked by national central
banks in accordance with guidelines to be established by the
Governing Council.
32.3. If, after the start of the third stage, the balance sheet structures
of the national central banks do not, in the judgment of the Governing
Council, permit the application of Article 32.2, the Governing Council,
acting by a qualified majority, may decide that, by way of derogation
form Article 32.2, monetary income shall be measured according to an
alternative method for a period of not more than five years.
32.4. The amount of each national central bank's monetary income
shall be reduced by an amount equivalent to any interest paid by that
central bank on its deposit liabilities to credit institutions in
accordance with Article 19.
The Governing Council may decide that national central banks shall be
indemnified against costs incurred in connection with the issue of
bank notes or in exceptional circumstances for specific losses arising
from monetary policy operations undertaken for the ESCB.
Indemnification shall be in a form deemed appropriate in the judgment
of the Governing Council; these amounts may be offset against the
national central banks' monetary income.
32.5. The sum of the national central banks' monetary income shall be
allocated to the national central banks in proportion to their paid-up
shares in the capital of the ECB, subject to any decision taken by the
Governing Council pursuant to Article 33.2.
32.6. The clearing and settlement of the balances arising from the
allocation of monetary income shall be carried out by the ECB in
accordance with guidelines established by the Governing Council.
32.7. The Governing Council shall take all other measures necessary
for the application of this Article.
ARTICLE 33
Allocation of net profits and losses of the ECB
33.1. The net profit of the ECB shall be transferred in the following
order:
(a) an amount to be determined by the Governing Council, which may
not exceed 20% of the net profit, shall be transferred to the general
reserve fund subject to a limit equal to a 100% of the capital;
(b) the remaining net profit shall be distributed to the shareholders of
the ECB in proportion to their paid-up shares.
33.2. In the event of a loss incurred by the ECB, the shortfall may be
offset against the general reserve fund of the ECB and, if necessary,
following a decision by the Governing Council, against the monetary
income of the relevant financial year in proportion and up to the
amounts allocated to the national central banks in accordance with
Article 32.5.