Law 46/1998, Of December 17, On Introduction Of The Euro.

Original Language Title: Ley 46/1998, de 17 de diciembre, sobre introducción del euro.

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JUAN CARLOS I King of Spain to all that the present join together and act.

Know: That the Cortes Generales have approved and I come in to sanction the following law.

EXHIBITION grounds I the Council of the Union European, in its composition of Heads of State or Government, by Decision adopted on 2 May 1998, agreed that eleven countries, Spain among them, meet the necessary conditions for the adoption of the single currency on 1 January 1999.

II the adoption of the single currency does not require, in principle, of another legal framework than the one who provided the two Community regulations; Regulation (EC) number 1103/97 of the Council of 17 June 1997 on certain provisions relating to the introduction of the euro, and Regulation (EC) number 974/98 of the Council, of 3 may, on the introduction of the euro.

These two rules of derived law represent the basic acquis with regard to the introduction of the euro.

The first cited regulation has as basic purposes: on one hand, determine the replacement of the ecu by the euro, as of January 1, 1999; another, one of the basic principles in the process, which is the continuity of all legal instruments, as well as set the corresponding rules of rounding of monetary amounts resulting from conversions during the transitional period.

Most interesting is the second regulation on the introduction of the euro, consisting of the following basic aspects: first, provides replacement of the currencies of the States members participating in the third stage for euro.

In the second instance, a set of rules include order of the transitional period. So are collected, among others, the following aspects: 1 survival of the national currency units, while in both subdivisions of the euro.

2nd equal validity of the national monetary unit that serves as a reference to a legal instrument.

3rd inalterability of the legal instruments as a result of the replacement of the currency.

4th recognition of the principle of ' not prohibition not compulsion», with regard to the use of the euro during the transitional period.

5 survival of coins and banknotes referred to in the national monetary unit, in both legal instruments.

Thirdly, the implementation regime is set in circulation from 1 January 2002, banknotes and coins denominated in euro, as well as the procedure for Exchange of coins and banknotes encrypted in national monetary units.

III the direct application of the two abovementioned provisions exempt, in principle, to issue other regulations which was not one that established, in some cases, an optional regime of the use of the euro in the transitional period, in accordance with the principle before referral of no prohibition, no obligation on the use of the euro during the transitional period.

However, the majority of the Member States participating in Monetary Union, have proceeded to adapt its domestic, in accordance with their special characteristics, to make effective the mechanisms of introduction of the euro as the single currency in each of their monetary systems and to harmonize such mechanisms with the set of rules which may be affected as a result of such an event.

This work of normative production has, in all cases, the indisputable need to prepare different legal systems to the introduction of the euro, both Homogenizer element of all monetary systems entering monetary union regime, does not produce any undesired effect.

The indicated purpose not exhausted, however, the opportunity to rule. It is also facilitate the use of the new currency, the knowledge of the mechanisms of coexistence with the former monetary unit during the transitional period and, in general, to ensure transit more imperceptible and calm towards the new currency to the population.

This legislative activity can be done from two different approaches which, in advance should be noted, they lead to identical result. The first would be to uniquely fit all and each one of the rules that can be affected by the modification of the monetary system. The second, part of a conceptualist position, reaffirming the neutrality of the modification, offered general rules supplementing what the affected monetary system is concerned, the introduction of the euro as the single currency.

This second system has been that the Spanish legislator has chosen. From the statutory claim that during the transitional period will remain of the monetary law of the participating Member States, except as provided in the second of the regulations which have previously referred, this standard does not change any provision of monetary law, but to pick up the replacement of the peseta by the euro as national currency explicit principles governing such a change within our monetary system, organizing the relevant procedural rules of internal order to make them effective, and coordinating the coexistence of the peseta to the euro during the transitional period.

On occasion, and consciously so, to avoid the loss of its necessary pedagogical sense, the wording of the rule collects, singularizando it for our environment, expressions contained in the Community regulations. This resource must be understood within the object and purpose of the rule, which is not the develop the legal status of the euro, which corresponds to Community law, but to prepare and complete our legal system for smoother reception of the single currency.

This law is, therefore, an instrument that facilitates the introduction of the euro in our legal system and prevents the growth of interpretative elements that could spoil what may not be considered but as a mere change in the monetary system, as the euro becomes, from the perspective of our system, our new national currency, mere change in the name of the same whose equivalence with the peseta rest irrevocably fixed conversion rate.

IV along with the stated purpose, the standard does not renounce to develop matters of domestic law. This is because the definition of the concept of "redenomination" and consideration that is not taxable as a corollary of the principle of neutrality that governs the modification of our monetary system. Also therefore defines the centesimal subdivision of the euro with the term 'cent' more according to the most recent Spanish monetary tradition, because, as he admits in the own Community provisions, it is possible to use variants of the above mentioned term in everyday use in each Member State.

Special mention deserves the treatment having the equivalence of amounts in the orbit of the sanctions law. Article 5 of the law and article 2 of the complementary to this law prevents any interpretative doubt that might assist those who implement the standard rigorous perspective of the principle of typicality of disciplinary law.

In the regulation of the rules of rounding is set a standard of prevention in the treatment of intermediate operations. It is a unchangeable rule that respects the integrity of the sums payable, payable or contabilizables, when they pass through intermediate calculations systems established. This rule will have their fundamental application while conversions occur in both directions, that is, during the transitional period.

For what regards the use of the euro and the peseta as units of account and means of payment during the transitional period, articles 13 and 14 organized this coexistence; for this purpose it is recalled the possibility contained in article 8.3 of regulation 974/98, of the Council of 3 may, as regards the payment by credit. At the same time, the condition of the peseta as subdivision of the euro justifies the gratuitousness of the conversions.

The law regulates a series of measures to ensure the duality of units of account and means of payment during the period of coexistence. Sets, also dyed the principle of gratuity, the redenomination of bank accounts regime, reflected in the flat scriptural of the exchange of notes and coins.

It regulates the change of unit of account in securities markets, the operating procedures of the clearing and payment systems and securities settlement systems, and reporting obligations of collective investment institutions, pension funds and insurance companies.


Within these measures they find accommodation the procedure of renaming the State debt and the change of the unit of account of its market. The peculiarities of the operation of the book-entry system protect a system of redenomination of all debt in circulation that allows it between the closing of the market of the last business day of 1998 and the first business day of market of 1999, as a general rule of re-nomination for individual balances of each code value. The necessary enabling regulation to establish the technical procedures and to accommodate the regime of fungibility of this debt renamed with new debt to issue directly in euros, closes the framework of this regulation, which is complemented by the regime of redenomination of other instruments of public debt that are not negotiated within the quoted market, such as the debt represented differently to book-entry account or simply debt referred for financing foreign operations.

Also regulates the regime of fixed-income securities other than the aforementioned renaming, attending the beginning of redenomination of nominal value. Law also allows in certain cases the use of a redenomination scheme by balances, where precisely exist conditions next to which enable the use of this procedure in the debt of the State.

The law closes this chapter regulating the redenomination of the capital stock turnover without forgetting the substantive character that our legal system has this figure.

In this particular standard chooses to rename criterion with first reference to the turnover of capital. Fruit of the chosen criterion is the admission of a reduction in the number of decimal places resulting nominal of shares for practical reasons, bearing in mind that this reduction is legal and bylaws innocuous since it will always express an aliquot part of the share capital.

Fundamentally, v chapter IV establishes the rules of an Exchange from the moment of entry into circulation of banknotes and coins denominated in euros.

From that moment on, the peseta lost consideration of unit of account of the monetary system and six months later also its consideration of means of payment of legal, preserving, that Yes, a mere value of Exchange to the Bank of Spain, unless such time is anticipated thanks to the provisions of the Community regulations. As of June 30 of the year 2002, the euro will be the only unit of account and the only means of payment of legal tender, not only in the national territory, but also in the remaining Member States participating. Introduction process is, therefore, in such time, its culmination.

(VI) chapter V, and last, complete the regulatory scene with the exhibition of a series of measures, some of them not connected in intimate way to the idea of the introduction of the euro, but whose regulation seems flattering of the reception of the single currency, and upsetting certain consequences that entails.

This, in relation to the accounting obligations sets an optional asymmetric regime, declaring the use of the unit of account irreversible when you chose to take the books or express the annual accounts in euros.

With regard to company law, and in close connection with the provisions on redenomination of capital stock turnover, is allowed a simple formula of adjusting the nominal value of the shares which, as a result of the redenomination, have thrown a number with more than two decimal places. The adjustment comes to the nearest cent, in both ordinary subdivision of the euro.

It imposes on public administration, acts, contracts and general provisions, the obligation to designate the equivalent euro amount so long as is the use of the unit of account peseta, and identical prevention extends to official professions, notaries, registrars, and collegiate trade brokers with the dual objective of go carrying out a physical redenomination of the instruments and records and get accustomed to the agents involved to the assimilation of the new standards. In the administrative acts this provision is conditioned to the regulatory development and material possibilities of action.

The law empowers the Minister of economy and finance, when the circumstances so require, to establish a new formula of calculation or a new type of reference which will replace called MIBOR mortgage, in accordance with the applicable requirements. Such faculty, that it reveals a foresight exercise, should be understood without prejudice to the possibility that the parties have to modify their corresponding contracts seeking formulas for determining the rate of interest that respond to the foreseeable new evolution of the markets.

Same purpose should preach about references to other types MIBOR that the law, in another kind of financial operations, it also regulates.

In the section concerning the tax rules, the law gives the necessary legal protection so that the Minister of economy and finance or other competent bodies may approve, optionally, deadlines, procedures and conditions for the submission of statements and self-assessments in euros, combining the flexibility of the system with the irreversibility of the process, mode which is the case for the regulation of the accounting obligations. With this empowerment can carry out the tax regime announced, with respect to the corporate income tax and value added tax, by the National Plan for transition to the Euro. Identical prevention are contained in relation to standards on Social security contributions.

Finally, the Act provides the necessary foundation for, where necessary in the course of events, to establish a specific regime for the protection of consumers in the treatment of the double exposure of prices during the transitional period.

A VII of the consequences of economic and Monetary Union is the integration of the Bank of Spain in the European system of central banks, led by the European Central Bank.

The Spanish State is obliged to adopt general provisions that may be necessary to ensure compliance by the Bank of Spain of the obligations which imposes it its status as an integral part of the European system of central banks, as set out in article 1.3 of the law 13/1994 of 1 June, autonomy of the Bank of Spain introduced by the recent law 12/1998, of April 28, and which will enter into force on January 1, 1999.

As an integral part of the European system of central banks, the Bank of Spain will be forced to carry out a series of homogeneous operational processes with which other central banks of member countries of the European Monetary Union should be, and in a few hours, other than the usual, coincident with these and all of this complies with the requirements of the European Central Bank and the aforementioned system performance.

These new requirements, ranging from the implementation of the common monetary policy, to the functioning of the system of payments Spanish that, soon, will be an integral part of the general TARGET – Transeuropean Automated real-time Gross Settlement Express Transfer system, passing through the process of opening and closure of markets and related activities, integrated part of the activity of the Bank of Spain in an area of European common action subject to the above-mentioned homogeneous rules which translates into the need to adapt to these rules the working conditions of employees assigned to these tasks. The imminent commissioning of the mentioned system makes it necessary to introduce an additional provision, the second of this law, in order to ensure compliance by the Bank of Spain of the obligations imposed on it by its status as an integral part of the European system of central banks.

Finally, it is worth mentioning that the first final provision establishes a system of organizational, coordination by haste with that presumably will run events in the transitional period, by completing this regime of coordination with the possibility that the Government will, in the light of the circumstances and valuing different rules for applying, adjusting the expressive figures of monetary amounts in the legal provisions in force.

VIII would not complete the preamble without a commendation and farewell of the peseta. It should be recalled here the Catalan likely etymology of the peseta and the liberal origins of his elevation to the national currency unit. Indeed, for a long time the peseta lived with real, Doubloons, shields and other coins, until the 1868 revolution becomes the official unit of the Spanish monetary system, a position that has remained since, through various vicissitudes and distinct minting of coins and banknotes of the Bank of Spain emissions. It is fair to recognise, however, that the peseta has shared the role of unit of account in the daily practice with their multiple hard.


Well, it is no doubt that the Kingdom of Spain and the citizens who give the primary impetus to its institutions have a proven pro-European vocation and who have promoted and very favourably received both monetary union and other advances in the construction of Europe. However, the greeting to the euro does not prevent the affectionate evocation of a currency, the peseta, which has dominated Spanish economic life for 130 years, has been introduced in the literature and in the popular sayings and has been used to encrypt the work, business, taxes and the illusions of many generations of Spaniards.

Chapter I object of the law article 1. Object.

This law aims to complete the legal framework for the introduction of the euro as a common currency, within the national monetary system, in accordance with provisions in regulations (EC) number 1103/97 of the Council of 17 June on certain provisions relating to the introduction of the euro and (CE) number 974/98 of the Council of 3 may , on the introduction of the euro.

Article 2. Definition of the concepts employed.

One. For the purposes provided for in this law, it refers to legal instruments and regulatory provisions, administrative acts, judicial decisions, contracts, unilateral legal acts, the registration records, payment instruments other than banknotes and coins, and other instruments with legal effect.

Two. For the purposes provided for in this law, the adopted means conversion rate irrevocably by the Council of the European Union pursuant to the provisions of the first sentence of paragraph 4 of article 109 L of the Treaty of the European Community to replace the peseta by the euro.

3. For the purposes provided for in this law, means renaming the irreversible change of the unit of account peseta to the unit of account in euro, insofar as it expresses a monetary amount, in any legal, according to the conversion rate instrument, and once practiced for rounding. The re-nomination has no tax in fact taxable consideration.

During the transitional period referred to in article 12 of this law, the redenomination of a legal instrument shall necessarily entail the material alteration of the expression of the unit of account. After the transitional period, the re-nomination shall read automatically made, where appropriate, to the specific rules laid down in this law, although materially alter the expression of the unit of account.

The procedure of redenomination of the amount of capital, of the values of a broadcast, for accounts in credit institutions and public debt will be held exclusively in the manner prescribed by this law and, in any case, will be free for the investor or client of the entity.

Chapter II amendment to the national monetary system section 1 article 3 national currency. Replacement of the peseta by the euro.

One. Since January 1, 1999, inclusive, of the national monetary system currency is euro, as this currency is defined in the Regulation (EC) 974/98 of the Council of 3 May.

Two. The euro happens without solution of continuity and full mode to the peseta as the currency of the national monetary system. The system account and monetary unit is a euro. One euro is divided into 100 cents or centimes. Banknotes and coins denominated in euros will be the only legal tender in the country.

Article 4. Transient survival of the peseta as unit of account and means of payment of the system.

One. Notwithstanding the provisions of article 3 of this law, the peseta will continue to be used as a unit of account of the monetary system in any legal instrument, in the subdivision of the euro, according to the conversion rate, until 31 December of the year 2001.

From that moment on, the use of the peseta as unit of account not enjoy protection of the monetary system. Any employee or public official who has knowledge by reason of their profession, trade or charge of a new legal instrument in which the payable amounts endeavoring to call in pesetas, with the exception of those in which the contents of the instrument precisely refers to notes or coins denominated in pesetas as the direct object of the same, warns of this circumstance.

Two. However the provisions of article 3 of this law, the banknotes and coins denominated in pesetas will continue to be valid as means of payment of legal tender with full discharge power, in the subdivision of the euro at the conversion rate, until 30 June of the year 2002, unless legally specified a lower term, in accordance with the provisions of article 24 of this law. From the moment, such banknotes and coins only kept a mere exchange value in the terms provided for in this law and its development provisions.

Article 5. Sanctions law.

One. Notwithstanding the provisions of the preceding articles, the references contained in the punitive standards to the national currency shall be deemed both the euro and the peseta until the end of the redemption period referred to in article 24 of this law.

Two. During the transitional period, references contained in the punitive rules to monetary amounts expressed in pesetas be construed as also references the corresponding monetary amount in euros resulting from the application of the conversion rate and, where applicable, of the effected rounding in accordance with the provisions of article 11 of this law.

Also the references contained in the punitive standards to the unit of account in ecu shall be deemed performed to drive euro at the rate of one euro to one ecu.

3. The same equivalence expressed in the preceding paragraph means subsisting, where appropriate, for the application of the sanction provisions for acts performed before the end of the transitional period, upon completion of that period.

Section 2 principles and effects that govern the modification of the monetary system article 6. Principle of neutrality.

The replacement of the peseta by the euro, in the terms provided in this law, does not cause alteration of the value of loans or debts, any that is their nature, remaining its value identical to that you had at the time of replacement, without solution of continuity.

Article 7. Principle of fungibility.

The references contained in any legal instrument to monetary amounts will have the same validity and effectiveness, as expressed in pesetas and euros, provided that such amounts have been obtained in accordance with the type of conversion and rounding rules provided for in article 11 of this law.

Article 8. Nominal equivalence principle.

The monetary amount expressed in euros resulting from the implementation of the type of conversion and rounding in your case, it is equivalent to the monetary amount expressed in pesetas was subject to conversion.

Article 9. Principle of gratuity.

The replacement of the peseta by the euro, as well as the implementation of operations provided for in this law or any others that may be necessary for the implementation of the provisions of article 3, will be free to consumers, without that it may lead to the payment of expenses, supplies, commissions, prices or similar concepts, without prejudice to the provisions of article 11 , in relation to the rounding. You will be deemed void void any clause, Covenant, or agreement which contravenes the provisions of this article, which will be considered, with respect to credit, management and discipline regulations.

Article 10. Effect of continuity.

The replacement of the peseta by the euro may not be, in any case, considered as a legal fact amending, receive, revocatorios, rescission or resolution purposes in compliance with the obligations.

The replacement of the peseta by the euro does not exempt or excuse of the fulfilment of the obligations that exist at the time of replacement, nor authorizes the unilateral content alteration, unless the parties have expressly agreed otherwise. In particular, in the case of contracts with consumers and users, must respect the rights recognized in the legislation governing the defence of these.

The law does not grant action to claim before the courts the amendment, termination, revocation, rescission or resolution of the content of an obligation alleging the modification of any element of the legal transaction or the alteration of the value of benefits due, as a result of the replacement of the peseta by the euro.

Section 3 rounding article 11. Rounding.

One. In monetary amounts that have been paid or accounted, when a rounding operation takes place after a conversion to the euro unit, they shall be rounded up by excess or default to the nearest cent. Monetary amounts that have been paid or accounted and the peseta monetary unit to be converted must be rounded off by excess or default to the nearest peseta. When applying the conversion rate to obtain a quantity whose last digit is exactly half a penny or a peseta, rounding will be to the upper figure.

Two. In any case you can modify the amount to pay, liquidate or post as the final balance, as a result of rounding in intermediate operations. For the purposes of this paragraph, it means intermediate operation that where the immediate object of the operation is not payment, liquidation or posting as the final balance of the corresponding monetary amount.

Chapter III transitional period


Section 1 delimitation article 12. Delimitation of the transitional period.

The transitional period is defined as which average between 1 January 1999 and 31 December of the year 2001, both inclusive. During this period, coexist the euro and the peseta as units of account and means of payment, in accordance with the provisions of the Community regulations of the Council (EC) 1103/97 and (EC) 974/98, pursuant to the provisions of this chapter, and without prejudice to the provisions of articles 4 and 24 of this law.

Section 2 principles that govern the coexistence of the euro and the peseta as the unit of account and means of payment during the transitional period article 13. Principle of duality in the use of units of account.

During the transitional period, new legal instruments expressing monetary amounts, in accordance with the national monetary system, may be expressed both as the unit of account peseta in the unit of account in euro provided that, in the latter case, the private law relations there is agreement of the parties, or, in relations with public administrations, there is the possibility of using the unit of account in euro and the applicant chooses to use it. This article refers to without prejudice to special rules that are contained in this law on the redenomination of legal instruments in the transitional period.

Article 14. Beginning of execution depending on the unit of account used.

One. The monetary amounts expressed in the unit of account peseta will run in pesetas. Those expressed in the unit of account in euro will run in euros. Provisions of this number shall be without prejudice to what the parties have agreed.

Two. However the provisions of the previous number, all named amount in the unit of account in euro or in the unit of account peseta, payable within the national territory by subscription in the account of the creditor, can be paid by the debtor in the amount equi-valente in the euro unit and the peseta unit.

The sum will be paid into the account of the creditor in the denomination of the same.

The debtor of a certain amount in pesetas, where application of the rule contained in the previous paragraph, wishes to pay in euros, must provide an amount in euros that, by applying the conversion rate and once rounded in accordance with article 11 of this law, dispose of the amount due in pesetas.

Conversely, the debtor of a certain amount in euros that in application of the rule referred to in the preceding paragraph, wishes to pay in pesetas, must provide an amount in pesetas that, by applying the conversion rate, and rounded once, in accordance with article 11 of this law, dispose of the amount due in euro.

3. The conversions involved in credit institutions, in accordance with the provisions of the preceding paragraph of this article, shall be free.

Four. Cash conversions that have to services of investment firms execute client orders shall also free.

5. Fees for financial services in euros, either that is the financial institution that you make them, will be equal to those applied to identical services in pesetas.

6. The provisions of the preceding three paragraphs shall be with respect to financial institutions rules of management and discipline pursuant to specific legislation.

Section 3 measures necessary to ensure the duality of units of account and means of payment during the transitional period of article 15. Redenomination of bank accounts.

One. During the transitional period, prior agreement between the parties, redenominarán credit institutions in euro accounts of cash in pesetas, individuals and public administrations maintain open the respective entity.

Two. The redenomination will take place for the balance that the account the day of the redenomination, by applying the conversion rate, as well as the rule of rounding established in article 11 of this law. The redenomination will be free. The collection of any type of expense, supply, Commission, price or analogous concept in connection with this redenomination is prohibited.

This article will be considered, with respect to credit institutions, rules of management and discipline.

3. The redenomination of the account will reach the means of disposal of the same, without prejudice that can continue providing account through cheques in pesetas-encrypted.

Article 16. The debt of the State regime.

One. As of January 1, 1999, emissions of debt carrying the State or their autonomous bodies in the unit of account of the national monetary system will be carried out in euros. Such effects, the emission limit expected in the General State budget Act for the exercises of 1999, 2000 and 2001 means automatically converted into euros from the same day of January 1, 1999, pursuant to the conversion rate, and so on until the year corresponding to the year 2001, unless such laws have passed to use the unit of account in euro.

Two. As of January 1, 1999, the unit of account of the market of public debt in notes will be the euro unit. As a result, both the record of the values contained in the book-entry system as trading, clearing and settlement will be conducted, exclusively, this unit of account.

3. The State debt denominated in pesetas, represented by annotations into account which, having been issued prior to January 1, 1999, is in circulation that day, and whose accounting records are kept in the book-entry system, will be re-denominated in euros between the date of entry into force of this law and the first day for the market of public debt in annotations of the year 1999. The redenomination will be handled in General, through the application of the conversion rate to the balance rated each of the codes value of government debt of each holder, as recorded in the immediate previous business day market closing. The resulting figure shall be rounded, where appropriate, to the nearest cent, in accordance with the provisions of article 11 of this law. However, if the nominal balance by code value of a headline is made up of several records, the redenomination and its corresponding rounding will be carried out by each of them, the sum of which will be the nominal balance in euros.

The sum of the nominal balances thus obtained shall constitute the total nominal balance of each code value.

Nominal balances of government debt can be expressed in euro cents. However, in order to homogenize the redenominadas emissions of government debt with new emissions of government debt in euros, they may be by the Minister of economy and finance amounts nominal minimum of negotiation, as well as procedures for the consolidation of values to achieve the negotiable minimum amounts and technical procedures that allow the maintenance , without solution of continuity, of the code values.

Four. The State debt in circulation, denominated in pesetas, issued or incurred prior to January 1, 1999, other than referring the previous number, will be re-denominated in accordance with the following rules: to) represented by annotations into account and whose accounting records is carried out through the service of compensation and liquidation of securities will be re-denominated according to the procedure laid down in article 17 of this law for the issuances other than the debt of the State.

(b) the formalized through outstanding loans will be re-denominated by applying the conversion rate to the principal of the loan, rounding the resulting figure in accordance with the provisions of article 11 of this law.

(c) it represented by physical titles, both titles to bearer or nominative registration certificates will be re-denominated by applying the rate of conversion to the nominal value of each title and rounding the resulting figure in accordance with the provisions of article 11 of this law.

The remaining instruments of government debt is redenominarán according to the legal nature of the instrument in question.

5. It empowers the Minister of economy and finance for redenominating the debt of the State, issued prior to January 1, 1999, is in circulation at that date and is denominated in the currency of one of the Member States which adopt the euro replacing their national currency, provided that the issuing State of that currency has taken the necessary measures , in accordance with the provisions of article 8.4 of the Regulation (EC) 974/1998 of the Council, of 3 may, on the introduction of the euro.

6. Emissions other than the debt of the State whose accounting records is carried out by the book-entry system, redenominarán to the euro unit, consent of the issuer, pursuant to the provisions of paragraph 3 of this article.

7. Operations provided for in this article shall be in any case free.

Article 17. Redenomination of the emissions of the debt of the State values of fixed income.

One. As of January 1, 1999, inclusive, is may redenominate emissions from fixed-income securities, other than those regulated in the previous article, and expressed in the unit of account peseta, issued prior to that date, pursuant to the provisions of this article.

Two. Rename faculty to which this article refers shall be subject, eventually, to the market where the issue is negotiated has adopted the euro as a unit of account for the negotiation.


3. The redenomination will be made using the rate of conversion to each individual value, rounding the resulting figure as provided in article 11 of this law. The amount of emission, expressed in the unit of account in euro, shall be calculated by the sum of all values as well redenominados.

Four. The redenomination of the emission may be as of January 1, 1999 by simple agreement of the issuer, without agreement of the Trade Union of the debenture holders, if any, unless the issue agreement expressly exclude the Faculty of redenomination until December 31, 2001 and during this period. Submission of certification of the agreement adopted by the organ of administration or Government, where appropriate, of the issuing entity, with legitimate firms, where he is credited to have been adjusted to the method of redenomination stated in the previous number, and the fulfilment of the other requirements laid down in this article will suffice for their accreditation in the corresponding accounting records. When appropriate, the accreditation to the register, and, where appropriate, before the National Commission of the stock market will be held for identical document, causing in the register, prior their timely rating, note marginal seat corresponding to the emission. These operations, simple arithmetic, not shall accrue notarial or registration duties, and are exempted from publication in the «Official Gazette of the register mercantile».

Publicity about the redenomination of securities referred to in this article, in the event that they are traded on a secondary market, will fit the stock market legislation.

5. Only during the transitional period, the redenomination of fixed income within the meaning of this article traded on a secondary market organized, also may be using the redenomination of balances of the same reference, by the holder, in conditions which, where appropriate, be fixed by regulation, provided technical or market circumstances permit the aggregation of the final nominal balance of emission.

6. Likewise, nominal balances of the values referred to in this article may be expressed in euro cents. However, nominal minimum amounts of negotiation may be, under the aegis of the technical standards of each secondary market.

7. Operations provided for in this article shall be in any case free.

Article 18. Change of the unit of account in securities markets.

One. As of January 1, 1999, is authorized to stock markets, other than the market of public debt in annotations, for which to change the unit of account of their operating procedures of the peseta unit to the euro unit, which concerned the trading, clearing and settlement of securities and other financial instruments.

This operation will be held free of charge for investors in all secondary stock markets.

Two. During the transitional period, the information which facilitate the governing bodies in the stock markets referred to in the preceding paragraph, about the operations performed on them, will be offered in euros, in accordance with the rules which, in his case, the Minister of economy and finance set. In addition, the Minister of economy and finance may establish the obligation to provide the information in euros and pesetas, in the media of the information provided by the official secondary markets, in order to promote the protection of the investor in these markets.

Article 19. Change of the unit of account in the operating procedures of the clearing and payment systems and securities settlement systems.

As of January 1, 1999, authorizes the change of the unit of account peseta to the unit of account euro in the operating procedures of the Spanish systems of clearing and settlement of securities and derivative financial products, of the Spanish systems of payments and compensation of the means of payment systems.

Article 20. Unit of account on reporting obligations of collective investment institutions, pension funds and insurance companies.

One. During the transitional period, collective investment undertakings which by themselves or by decision, where applicable, its management company they have adopted the euro as a unit of account must provide the information required by the legislation in force in euros. The Minister of economy and finance, report of the National Commission of the stock market, may establish the cases and conditions in which information produced by institutions for collective investment and management companies must be in euros and pesetas.

Two. During the transitional period, the managing bodies of those pension funds that have adopted the euro as a unit of account shall also provide control commissions the information required by the legislation in force in euros. The Minister of economy and finance may establish conditions and assumptions on which information to provide to the participants and beneficiaries of the pension plans should be both euros and pesetas.

3. During the transitional period, the insurance companies and mutual social welfare organizations that have adopted the euro as a unit of account must provide the information required by the legislation in force in euros. The Minister of economy and finance may establish conditions and assumptions on which information to provide to policyholders, insured persons and beneficiaries should be both euros and pesetas.

This article is understood without prejudice to the competence of the autonomous communities in the field of information and protection of consumers and users.

Four. The duty to provide the information referred to in the three preceding paragraphs shall not prejudice the provisions of article 27 of this law with regard to the expression of the annual accounts and the accounting books.

Article 21. The number of share capital redenomination.

One. The redenomination of the capital of commercial companies number will be made exclusively by the application to this figure from the conversion rate, then rounding amount in accordance with the provisions of article 11 of this law.

Carried out this operation, the nominal value of the shares or participations shall be by multiplying the resulting figure in euros by a number that expresses the share of the social capital that the nominal value of such action or participation constitutes respect the original figure expressed in pesetas. The resulting nominal value in euros of the shares or participations is not quoted, although it may reduce the number of decimal places for practical reasons to a number not more than six. This last operation will not alter in any way the proportion of action or participation with respect to the number of registered capital for all legal and statutory purposes.

Two. The redenomination of share capital and the par value of the shares or participations may be carried out from January 1, 1999 and will not require but certification of the agreement adopted by the Board of Directors, with legitimate firms, stating irrefutably that the redenomination is carried out in accordance with the provisions of this article. Your registration record will be made by marginal note in the last registration relative to the amount of share capital and the par value of the shares or participations. These operations, simple arithmetic, shall not accrue rights tariff, notarial or registration, even if they were formalized through public deed. In any case, they will be exempted from publication in the «Official Gazette of the register Mercantile» and shall not accrue any tax.

3. The provisions of this article shall apply to the redenomination of the figure of the capital and contributions of the cooperative societies and assumptions that analogy with the regulated here.

Article 22. Advertising using coins in euros and coins or commemorative medallions not legal tender.

One. The regime of control of advertising laid down in article 15.4 of the law 13/1994 of 1 June, autonomy of the Bank of Spain, will equally apply to the realization of advertising on coins Euro purporting to be done even though the competence to authorize and sanction shall correspond to the General direction of Treasury and financial policy.

Two. The authorization of the General direction of Treasury and financial policy will undergo manufacture, marketing and distribution of coins or commemorative medallions in euros that are devoid of legal tender.

The General direction of Treasury and financial policy, subject to the disciplinary procedure applicable to subjects acting on financial markets, may impose fines of up to 100 million pesetas to physical and legal persons, and to the administrators of these, which violate the provisions of the preceding paragraph.

Chapter IV end of the transitional period article 23. Exclusive use of the unit of account in euro.

From 1 January of the year 2002, the monetary system will exclusively use the euro as a unit of account. All new legal instruments expressing monetary amounts in the unit of account of the monetary system will use the unit of account in euro pursuant to the provisions of article 3 of this law.

Article 24. The Exchange until June 30, 2002.


One. From January 1 until June 30 of the year 2002, or even earlier if this term is legally reduced, will be the exchange of banknotes and coins in pesetas for banknotes and coins in euros according to the type of conversionyalaaplicacion, where appropriate, of the rounding rules contained in article 11 of this law. The reduction of the time limit referred to in this section will determine the legal course of the peseta loss at the time of completion of the same.

Two. The Exchange will be held by the Bank of Spain, banks, savings banks and credit unions.

3. You can only deliver banknotes and coins denominated in euros against the delivery of banknotes and coins denominated in pesetas while it may admit reverse exchanges.

Four. The Exchange is free of charge. The collection of any type of expense, supply, Commission, price or analogous concept in relation to this Exchange is prohibited.

5. The activity of an Exchange that referred to in this article shall be included among those reserved to credit institutions by article 28.2 of the Law 26/1988, of July 29, discipline and intervention of the entities of credit, being application as provided in article 29 of the same to those who offer or carry out certain transactions of an Exchange in breach of the legal reserve.

Article 25. The Exchange from July 1, 2002.

From July 1, 2002 or, where appropriate, the date of expiry of the deadline referred to in paragraph one of the preceding article, the banknotes and coins denominated in pesetas only retain a value, which will be an Exchange, by banknotes and coins denominated in euro according to the conversion rate and in the manner and mode determined by the Minister of economy and finance. This Exchange will take place, exclusively, by the Bank of Spain, prior corresponding made rounding in accordance with the provisions of article 11 of this law.

Article 26. Instruments not redenominados during the transitional period.

From 1 January of the year 2002, the legal instruments that have not been redenominados during the transitional period shall be automatically expressed in the unit of account in euro, by applying to the monetary amount of the conversion rate, and, in their case, by applying the rule of rounding established in article 11 of this law. Renaming rules laid down in articles 15, 17 and 21 of this Act shall be respected in any case.

By regulation the standards by which the administrative public records shall progressively materially change the expression of the unit of account peseta by the unit of account in euro will be established.

Chapter V measures to promote the full introduction of the euro article 27. Measures in relation to the accounting obligations.

One. For the exercises that are closed during the transitional period, the annual accounts, including the consolidated, may be made, deposit and publish expressing their values in pesetas or in euros. In General, the option of expressing accounts in euros may be agreed upon by organ of administration of the entity. However, in the case of pension funds, the option to express the values in euro will require the prior and express agreement of the Committee of Control of the Fund.

Two. During the period referred to in the preceding paragraph, accounting subjects can annotate their accounting books, expressing their values in pesetas or in euros.

3. If it is why the option of express in euro accounts annual, individual or consolidated or, where appropriate, annotations in the books of account, you can not become to use the unit of account peseta except in exceptional, duly substantiated cases in the form determined by law.

Four. Annual accounts expressed in EUR shall incorporate in any case the figures of the previous year expressed in euros, using the rate of conversion and making, if necessary, rounding in accordance with article 11 of this law, including in memory under the heading «bases of presentation of the annual accounts"of an explanation on the adjustment of the amounts of the previous financial years , as well as the process of introduction of the euro in the entity.

5. Regulations will be developed the accounting aspects arising from the introduction of the euro including also those who should be, in your case, included in the annual accounts for the financial year of 1998.

6. As provided in the preceding paragraphs is understood without prejudice to the provisions in the regulation of financial institutions subject to the supervision of the Bank of Spain, of the National Commission of the market of values and the General direction of insurance on publication of situation and information States to supervisory authorities cited.

Article 28. Adjustment, to the nearest cent, the nominal value of shares, participation and social fees, as a result of the redenomination of the capital.

One. If a result of the redenomination of which is article 21 of this law, the nominal value of the action or participation resulting cast a figure with more than two decimal places, and any that may be the conditions required by the bylaws, the Board of Directors may decide, for execution within a time not later than 31 December of the year 2001 increase or reduction of capital whose sole aim is to round off, as provided in article 11 of this law, the nominal values of the shares or participations to the alzaoalabaja to the nearest cent. The increase will be charged to reserves available. The reduction will be made through the creation of an unavailable reserve. The number of resultant social capital will be the sum of the nominal values of shares once adjusted in the form indicated in this number.

Reduction of the nominal value adjustment cannot be performed when the resulting figure of social capital is less than the minimum capital established legally, in which case shall be rounded upward.

Two. Adopted the agreement referred to in the preceding paragraph, will it rise to public deed and shall be entered in the register. These operations will be exempted from publication in newspapers and in the «Official Gazette of the register mercantile».

There will be the right to opposition by creditors in the event of a capital reduction envisaged in the articles 166 of the Royal Legislative Decree 1564 / 1989 of 22 December, which approves the revised text of the law of corporations, and 81 of the Act 2/1995, of 23 March, of limited liability companies.

In addition, shall not be enforceable verification by auditors of accounts of the balance sheet that shall form the basis to the appropriate operation of capital increase with a charge to reserves, which prove necessary, in your case, as a result of the adjustment regulated in this article, provided for in article 157 of the legislative Royal Decree 1564 / 1989 of 22 December, which approves the revised text of the public limited companies act.

3. The operation referred to in this article do not accrue any tax. Notarial or registration duties will not vest.

Four. The benefits in this article and the particular scheduled adoption of agreements here regime will not apply to companies which constitute as of January 1, 1999 and December 31, 2001, or who within that period have increased or reduced its capital stock turnover without having previously renamed.

5. The provisions of this article shall apply to adjustment of shares and amount of share capital of cooperatives and assumptions that analogy with the regulated here.

Article 29. Measures in relation to public payments.

It empowers the Director general of the Treasury and financial policy, in how much the State authorising officer, to, prior report of the General intervention of the State administration and the departments concerned, provides that during the period between 1 January 1999 and 31 December 2001, payments and non-tax revenue that can be made in euros Bearing in mind the unit of account in which the legal instrument is expressed cause of payment or income. For this purpose, it authorizes the Director general of the Treasury and financial policy to carry out the necessary actions to coordinate the operation of authorising payment of State with the Bank of Spain regarding the disposition of the account of the Treasury and payments resulting from the debt of the State.

Article 30. Acts, administrative contracts and rules.

From 1 January 1999 until 31 December of the year 2001, prices for new contracts concluded by public authorities, when they use the peseta as unit of account, and monetary amounts used as expressions final rules that from such date are handed down, should then contain the equivalent amount in the unit of account in euro at the rate of conversion being able in this case to express a final figure in a number of decimal places no more than six euros.

During the same period, and in the way that regulations be established, it will be, when the volume of administrative acts issued permits, to monetary amounts, such as final balances, to express the administrative acts, do contain the equivalent amount in euros by applying the rate of conversion and if the rule of rounding of article 11 of this law.


The indications referred to in this article do not alter the unit of account in which such acts, contracts or arrangements is understood to have expressed.

Article 31. Official professional performances.

One. As of January 1, 1999, notaries, ex officio, shall be noted in the documents that authorize and which are expressed in the unit of account peseta, the equivalent amount in the unit of account in euro, through the application of the conversion rate and applying if the corresponding round provided for in article 11 of this law. Equal obligation will fall on the corridors of Commerce members with respect to the documents involved. The expression of the equivalent amount in the unit of account in euro will take place following the expressed in pesetas and will not alter the unit of account in which the document is understood spoken or authorized by it.

Where parts have to be voluntarily included in the document the equivalent amount in euros, the notary or trade runner shall be limited to verifying the correct application of the type of conversion and rounding rules provided for in article 11.

From 1 January of the year 2002, you may not authorize or intervene any document whose monetary amounts are expressed in the unit of account peseta when using the unit of account of the national monetary system without prejudice to the provisions of the second paragraph of paragraph one of article 4 of this law.

Two. As of January 1, 1999 the property registrars and commercial used the expression of the unit of account euro in documents of any kind, arising in the registry. Similarly, they shall consist of ex officio seats registration to practice after that date with respect to the documents that contain references to the unit of account peseta, in addition to this figure, the corresponding euro by application of the conversion rate and prior, where appropriate, the corresponding practiced rounding in accordance with the provisions of article 11 of this law. Identical obligation will reach in terms of notes and certifications issued in containing expressions in the unit of account peseta.

If a document that is submitted to the registry contains discordances between the unit of account expressed in pesetas and presented as equivalent in euros, without observance of the implementation of the type of conversion and rounding rules referred to above, they suspended the practice of corresponding seat to rectify this discrepancy.

3. Notwithstanding provisions of paragraph one above and in the first subparagraph of paragraph two above, not be held such action when the amount that is included in the document or in the record, expressed in the unit of account peseta, is the result of adding individual monetary amounts. In particular, no will be re-denominated the amount of bond unless stating the aggregate sum of values or, in your case, balances, redenominated into euros in accordance with the provisions of this law in relation to the redenomination of private fixed-income securities, in which case it will be this figure which becomes recorded as equivalent in euros to the expressed in pesetas.

The nominal value of the shares, participations or quotas unless stating its determination in accordance with the rules laid down in this law for the redenomination of the capital will not be re-denominated.

Article 32. MIBOR.

One. The interest rate on the inter-bank market to one year (MIBOR) referred the Circular 8/1990 of the Bank of Spain, to apply to existing mortgage loans from January 1, 1999, it will continue calculating and publishing while fulfilled the technical requirements necessary for its preparation. It is presumed, unless evidence to the contrary, that simple references contained in the contracts of mortgage loan to the MIBOR as reference interest rate, they do to that referred to in the initial paragraph of this number.

Two. If its production by technical difficulties or market is not possible, the Minister of economy and finance will have the authority to determine its formula for calculating either or to establish a new type or equivalent benchmark which replaced him by operation of law. If it were not possible to establish a new type or equivalent benchmark, efforts are made to save the largest possible analogy with that one.

It will also have the authority to set rules on advertising of the mentioned indices. On the assumption that provisions of this number derived from application, enforcement shall not action to claim the application of any substitute, subsidiary or conventionally applicable in the absence of the initially agreed by the parties, or the modification or unilateral alteration of the loan or its extinction, as a result of the application of the arranged here.

3. Rules for the case of disappearance or lack of representativeness of that type have provided on financial transactions of any kind other than those provided for in paragraphs one and two above using as reference a type MIBOR whose calculation could not be performed by losing financial significance, and provided that the parties had not established a substitute, subsidiary or conventionally applicable type in the absence of the initially agreed that effective implementation, or not shall apply, in its place, the interest rate which present the greatest analogy with that.

For the purposes of the provisions of the preceding paragraph, it empowers the Minister of finance, when the technical or market circumstances warrant, to determine a new formula for calculating either to set a proxy type that will be applied by operation of law. On the assumption that provisions of this number derived from implementation, the law does not grant action to any of the parties to unilaterally claim the modification, resolution or termination of the contract as a result of the application of the provisions of this section.

Article 33. Provisions of tax law.

One. The Minister of economy and finance, or the organ which corresponds the competition according to the rules governing each tribute, may adopt their statements and self-assessments in euros, as well as the conditions and circumstances of use, with respect to the taxes accrued as of January 1, 1999, except those whose tax period has begun before that date.

Two. Complied with the provisions of the preceding paragraph, the taxpayer may choose to declare or payment in euros for each tax that is required. To exercise the option, when you are required to bring commercial accounting in accordance with the commercial code or the specific legislation that is applicable, will require express in euro notes in their books of account, in accordance with article 27 of this law. Once exercised the option, this shall be irrevocable.

3. Since the start of the transitional period, the exercise of the option by express in euros the annotations in the books of account, in accordance with article 27 of this law, will entail the duty to use this same unit of account books and records required by the fiscal rules. Taxpayers which must not be commercial accounting can use the euro in the books and tax records in accordance with provisions to be established.

Article 34. Provisions on Social security contributions.

Shall be determined according to the rules, procedure and conditions so that the unit of account can use euro in relations with Social Security and resulting payments of contributions to it.

Article 35. Double exposure price in pesetas and euros. Rights of consumers and users.

One. All dual exhibition price will be getting the price in euros through the implementation of the type of conversion and rounding rules provided for in article 11 of this law.

Two. Public authorities, in the exercise of their respective powers, may establish a regime for the protection of the rights of consumers and users of specific application to the period of transition to the full use of the euro. In particular, such arrangements may establish the need all double exposure price on the unit of account in euro and peseta, otherwise the unit that serves as a basis for the calculation of the conversion and rounding.

Article 36. Official listing.

For purposes of the provisions of the legislation in force, as of January 1, 1999 it will be considered official exchange of the national currency against other currencies which you can post to the euro the European Central Bank, itself or through the Bank of Spain. The Bank of Spain may also post quotes from the euro to currencies covered by the European Central Bank. During the transitional period, the Bank of Spain published for information purposes the equivalence of the official change in the unit of account peseta.

First additional provision.

This law is issued under cover of two separates them 11. or, first subsection, and 13. or of article 149, 1. or the Spanish Constitution, and without prejudice of what is available in article 35 of this law.

Second additional provision.

One. The integration of the Bank of Spain in the European system of central banks determined the reorganization of its services and dependencies.

Two. This provision will enter into force on the date of its publication in the "Official Gazette".


Third additional provision. Guarantees in transactions with the Bank of Spain, with the European Central Bank and others.

One. The condition of no mortgage loans as collateral in favour of the Bank of Spain, the European Central Bank or national central banks of the Member States of the European Union, to ensure the fulfilment of present or future obligations that constrict them credit institutions, shall be governed by the following provisions: to) loans shall be subject to any condition which are the formal requirements or materials that the parties had agreed with regard to its assignment or encumbrance.

(b) such a condition may be made at official model approved for this purpose by the Bank of Spain, which will produce all its effects against third parties since its registration in the register stating the Bank of Spain to do so. Document must be also registered in the register of sale installment of collateral regulated in article 15 of law 28/1998, of July 13, purchase of goods and chattels. The documents thus registered will be sufficient to run title. Do not surrender to the beneficiary of the guarantee the original affected loan document, shall be recorded in the same registration reference.

(c) the fruits of the affected loans includes, unless otherwise agreed, the credit institution that provides the warranty.

(d) in the case of default of the secured obligation, the beneficiary of the guarantee will acquire ownership of the right of affected loans, carry on the contractual position of the institution lender. Once satisfied the aforementioned obligations financed from the loan payments, the beneficiary will return overrun, if any, to the defaulting institution. However, you can also run warranty through auction organized by the Bank of Spain, according to the procedure that this set, also restoring the excess, if any, to the defaulting institution.

(e) for the determination of the liquid, due and payable amounts of guaranteed obligations that have been unfulfilled, it will be the certification to that effect issued by the beneficiary of the guarantee. This amount will be deducted, in his case, the amounts that would have been satisfied through warranties which might make the same obligations.

((f) in case of bankruptcy or receivership of the entity that would have affected guarantee loans, in addition to producing the effect provided for in subparagraph (d)), the beneficiary of the same shall have absolute right of separation in relation to credit rights derived from such loans. The Constitution of guarantees referred to in the present rule and the obligation secured by them may not be challenged in the case of retroactive measures linked to the aforementioned bankruptcy proceedings.

Two. The regime laid down in the legislation on markets for garments and double operations and Pact of repurchase, in guarantee of obligations against the Bank of Spain in the exercise of its monetary policy operations, it shall also apply to operations of similar nature, carried out in Spain guarantee of obligations against the European Central Bank and other central banks of the EU Member States in the exercise of monetary policy operations.

3. This provision will enter into force the day after its publication in the «Official Gazette».

First final provision.

Is it empowers the Government to develop implementing regulations under this law. Also, the Government may issue the necessary measures to ensure the implementation of the provisions of this law in a harmonious way. To this end it is enabled to adjust monetary amounts to whole figures of euro, as well as to introduce, for the purposes of article 11. two, those specifications which may be necessary in the field of insurance.

The coordination of the measures provided for in this law will take place through the Inter-Ministerial Committee for the coordination of activities for the introduction of the Euro in public administration, created by the Royal Decree 363/1997, of 14 March, who must mandatorily inform any regulatory provisions issued under cover of this disposal.

Second final provision.

One. Empowers the Minister of economy and finance, within the framework of introduction of the euro, to: to) A proposal of the General intervention of the administration of the State, determine which States or accounts between which should be held to the Court of Auditors to the administration of the State, its autonomous bodies and other State entities subject to public accounting, shall be expressed in euros as well as to enact rules in relation to the accounting of Local Administration; (b) to enact rules in relation to the budgets of the Local Administration, the purpose of its adaptation to the provisions of this law.

Two. Also he empowers the General intervention of the administration of the State to determine the expressible information in euros within intermediate accounting information and end of exercise that does not surrender to the Court of Auditors, and to determine the accounting rules of application of the system of conversion in entities subject to public accounting.

Third final provision.

This law shall enter into force on 1 January 1999, except for its provisions additional second and first final which shall enter into force the day of its publication in the «Official Gazette».

Therefore, command to all Spaniards, private individuals and authorities, which have and will keep this law.

Madrid, 17 December 1998.

JUAN CARLOS R.

The Prime Minister, JOSÉ MARÍA AZNAR LÓPEZ