Euro: legal framework for its use

OBJECTIVE: to propose, ahead of the start of stage III of EMU, the provisions that should make up the legal framework for the use of the euro and which will provide the necessary legal certainty for market participants and economic operators. SUBSTANCE: the proposal for a Council Regulation on some provisions relating to the introduction of the euro has the following objectives: - to confirm that, with effect from 1 January 1999, references to the ecu in contracts and other legal instruments are replaced by references to the euro at the rate of 1 Euro for 1 ECU; - to confirm the continuity of contracts which are denominated in national currencies and in ecu and which extend beyond 1 January 1999; - to determine the degree of precision at which conversion rates will be irrevocably fixed on 1 January 1999; - to establish rounding rules. Moreover, the proposal introduces the name 'euro' for the single currency into Community legislation. Reference to the decision of the European Council on the name is included in the recitals. �