text: OJ L189, 3.7.1998, p. 42-43.

title: Opinion of the European Central Bank of 28 August 2000 at the request of the German Federal Ministry of Finance on a draft legislative proposal for the issue of a 1 DM gold coin and the establishment of a ‘Monetary Stability’ Foundation (CON/00/17)

text: 1. On 31 July 2000 the European Central Bank (ECB) received a request from the German Federal Ministry of Finance for an ECB opinion on a draft legislative proposal for the issue of a 1 DM gold coin and the establishment of a ‘Monetary Stability’ Foundation.

text: 2. The ECB’s competence to deliver an opinion is based on

text: Article 2 of Council Decision 98/415/EC of 29 June 1998

text: on the consultation of the ECB by national authorities regarding draft legislative provisions , as the legislative proposal contains provisions concerning currency matters and means of payment. In accordance with the first sentence of Article 17.5 of the Rules of Procedure of the ECB, this ECB opinion has been adopted by the Governing Council of the ECB.

text: 3. According to paragraph 1 of the draft legislative proposal, the Deutsche Bundesbank shall be authorised to issue a gold coin for 1 DM in its own name in the year 2001 in commemoration of the Deutsche Mark, with a circulation of up to one million pieces. The ECB takes note of the fact that the draft legislative proposal does not impose an obligation on the Deutsche Bundesbank to make use of such right.

text: 4. Paragraph 3 of the draft legislative proposal states that the 1 DM gold coin shall be legal tender until the end of 31 December 2001. As the 1 DM gold coins will be attributed the status of legal tender, the ECB recalls that the issue will form part of the total volume of coins to be issued in accordance with the first sentence of Article 106(2) of the Treaty establishing the European Community, whereby such total volume requires the approval of the ECB.

text: 5. The ECB takes note that, according to paragraph 5(3) of the draft legislative proposal, the gold required to mint the 1 DM gold coins will be taken from the Bundesbank’s gold reserves. As explained in the official statement of reasons attached to the draft legislative proposal, the Deutsche Bundesbank will use an estimated 12 tonnes of gold for the production of one million coin blanks; it is further stated that this is less than 0.4% of the gold reserves of the Deutsche Bundesbank. Paragraph 7 of the draft legislative proposal states that the issue price for the gold coins will be determined by the Deutsche Bundesbank depending on the respective market rate for gold. In this context, the ECB stresses the importance of the declaration contained in the official statement of reasons to paragraph 5 of the draft legislative proposal according to which the Deutsche Bundesbank will seek to obtain approval from the ECB, if required, pursuant to Article 31.2 of the Statute of the European System of Central Banks and of the European Central Bank for the sale of central bank gold.

text: 6. The ECB holds the view that the minting and sale of gold coins is not in contradiction with the central bank gold agreement of 26 September 1999 between the ECB and the central banks of Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, Sweden, Switzerland and the United Kingdom. In this context, note is taken of the fact that the Deutsche Bundesbank has already informed the ESCB of its intention to issue the 1 DM gold coins.

text: 7. Finally, the ECB welcomes the intention of the Federal Government to maintain and promote the public awareness of the importance of monetary stability.

text: 8. The ECB confirms that it has no objection to this ECB opinion being made public by the competent national authorities at their discretion. Done at Frankfurt am Main on 28 August 2000. The Vice President of the ECB [signed] Christian Noyer


text: OJ L 189, 3.7.1998, pp. 42-43.

text: OJ L 166, 11.6.1998, p. 45-50.

publisher: Europeiska centralbanken

sprak: en

title: Opinion of the European Central Bank of 9 October 2000 at the request of the Luxembourg Ministry of Finance on 1. a draft law pertaining to the circulation of securities and other financial instruments; and 2. a draft law: a) concerning transfer of title intended to serve as security; b) amending and completing the law of 21 December 1994 concerning repurchase transactions carried out by credit institutions; c) amending and completing the amended law of 5 April 1993 concerning the financial sector; d) amending and completing the law of 21 June 1984 concerning the options and futures markets of the Luxembourg exchange and concerning the forward markets in which a credit institution operates (CON/00/18)

serie: con

text: 1. On 4 August 2000, the European Central Bank (ECB) received a request from the Luxembourg Ministry of Finance for an ECB opinion on: 1. a draft law pertaining to the circulation of securities and other financial instruments (“Draft Law 1”); and 2. a draft law: a) concerning transfer of title intended to serve as security; b) amending and completing the law of 21 December 1994 concerning repurchase transactions carried out by credit institutions; c) amending and completing the amended law of 5 April 1993 concerning the financial sector; and d) amending and completing the law of 21 June 1984 concerning the options and futures markets of the Luxembourg exchange and concerning the forward markets in which a credit institution operates (“Draft Law 2”). 2. The ECB’s competence to deliver an opinion is based on the second indent of Article 105(4) of the Treaty establishing the European Community and on

text: Article 2(1) of Council Decision 98/415/EC of 29 June 1998

text: on the consultation of the ECB by national authorities regarding draft legislative provisions1, as the legislative proposal contains provisions concerning means of payment. In accordance with the first sentence of Article 17.5 of the Rules of Procedure of the European Central Bank, this opinion has been adopted by the Governing Council of the ECB. Draft Law 1

type: stycke

text: 1. The ECB welcomes the Luxembourg initiative to further modernise its law of 1971 governing ownership and pledging of interests in securities held through intermediaries by allowing investors and secured creditors to be certain that they have a distinct package of rights that cannot successfully be attached by adverse claimants and by simplifying pledging and realisation procedures. 2. With respect to

text: Article 3

text: , the definition of “dépositaire” encompasses all institutions dealing with securities without making a clear difference between the activities related to securities settlement systems (SSSs) and the ones related to other financial intermediaries. The two types of activities have different business objectives, and have different roles in the organisation of the securities market infrastructure. It is the ECB’s understanding that services that focus on issuers of securities and participants in SSSs, rendered by operators of SSSs, on the one hand, and services towards investors, mutual funds, SSSs and own activity rendered by other financial intermediaries, on the other, are not similar; and that, when performed in a single institution, the corresponding pools of assets ought to be segregated, in particular in case of loss-sharing and for the definition of their operational environment. In this respect, the current wording of Draft Law 1 may generate a certain confusion when reading Articles

text: and

text: 3. With respect to

text: Article 4

text: , the ECB understands that the transfer of securities from one account to another, with the same depository or with another depository, would be carried out upon the initiative of the “déposant” and not of the “dépositaire”.

text: 4. With respect to

text: Article 7

text: , the ECB notes the importance of specifying the nature of entitlement to securities held on account with an intermediary or through several tiers of intermediaries. The ECB is also of the view that interests in securities held through one or several financial intermediaries can be defined or otherwise interpreted as a type of pro rata co-ownership right over the fungible pool of securities, or interests in securities, of the same issue held by the intermediary with whom the person entitled to the securities has a direct contractual relationship and evidenced solely by this person’s account with the intermediary, and not as a traceable property right in individual securities or a mere contractual claim.

text: 5. With respect to

text: Article 13

text: , the ECB favours the proposal to increase legal certainty and predictability in case of a holding of securities through a chain of account. This would seem to take account of the development of the system for holding, transferring and pledging interests in securities by book-entry to accounts with financial intermediaries. As a result, the selection of the law governing the characterisation, transfer and pledge of interests in securities represented or effected by book-entry to accounts with a financial intermediary is determined by reference to where the office of the financial intermediary maintaining such accounts is located or otherwise by reference to the intermediary’s jurisdiction.

text: 6. With respect to

text: Article 15

text: , the ECB welcomes the introduction of the non-seizability (with the exception of realisation of collateral) of the securities accounts opened in the books of an intermediary operating principally a payment system or a SSS. It is noted at the same time that this

text: Article 15

text: is somewhat broader than Article 9 of the Belgian Royal Decree No. 62 of 10 November 1967, on which

text: Article 15

text: is based. Indeed, such

text: Article 9

text: provides that no attachment may be carried out on securities current/settlement accounts opened in the books of the interprofessional organisation. The ECB understands that the objective of this provision is to further reduce the systemic risk inherent in payment and SSSs which is a concern shared by the central bank community. At the same time, the ECB is inclined to think that the objective of reducing systemic risk can be achieved by limiting the non-seizability to securities settlement accounts rather than extend the scope to any securities account. In the first sentence of

text: Article 15

text: , the wording “de l’accord du dépositaire” seems to suggest that the enforcement and/or the creation of a collateral arrangement over a securities interest is subject to the consent of the depository. This requirement seems peculiar since according to Article 9 of the Draft Law 1, pledges created in accordance with the requirements set out in the first sentence of the said Article are valid and enforceable and may be realised, without any further formalities. Hence, such requirement seems not to be in line with the aim of Draft Law 1 to simplify pledging and realisation procedures. It would be, moreover, questionable to confer a discretionary right to a depository to authorise the creation of a collateral arrangement over deposited securities.

text: Article 17

text: , in the perspective of further reducing systemic risk inherent in payment and SSSs, reflects the provisions already included in the Decree of 17 February 1971 and grants intermediaries which operate principally a payment system or a SSS, a statutory lien over securities, claims, cash and other rights which participants hold on account with such intermediaries (as opposed to assets held by participants on behalf and for the account of their customers). The statutory lien secures the obligations of participants in a payment system or SSS arising from the clearing, settlement or netting of securities transactions (in a payment or SSS) vis-à-vis the intermediary. According to Draft Law 1, this statutory lien conferred to the benefit of these intermediaries supersedes all other privileges except those listed in Article 2101 of the Civil Code. It should be recalled that the draft legislative proposal implementing Directive

text: of the European Council and of the Council of 19 May 1998 on settlement finality in payment and securities settlement systems2 (the “Directive”) in Luxembourg by amending the law of 5 April 1993, contains a new Article

text: which implements Article 9.1 of the Directive. Article 17 of the Draft Law should not negatively affect the provisions of Article

text: above concerning the rights of EU central banks and the ECB. The said Article

text: stipulates that the rights of the above central banks to collateral security provided to them shall not be affected by insolvency proceedings against participants or counterparties which provided the collateral security. These provisions should remain unaffected. The ECB is further concerned that some uncertainty may subsist for takers of collateral by way of pledge over assets held on account in a Luxembourg SSS. Indeed, the statutory lien granted by this

text: Article 17

text: to intermediaries which operate principally a payment or a SSS could possibly prevail over contractual pledges with respect to the same assets held on account in a Luxembourg SSS. In this respect, the ECB is of the view that the relationship between the statutory lien and contractual pledges would benefit from further clarification. In order to strengthen legal certainty, in particular with regard to the effectiveness of collateral arrangements, the ECB would be in favour of excluding from the statutory lien any proprietary assets which participants have pledged to third parties. In addition, the wording of

text: Article 17

text: seems to indicate that only obligations of participants arising from the clearing, settlement or netting of securities transactions would be covered to the exclusion of obligations of participants arising from the clearing, settlement or netting of payment transactions. This may seem somewhat peculiar considering that

text: Article 17

text: covers both payment and SSSs.

text: 8. With respect to

text: Article 18

text: , the ECB would like to express a reservation. This Article would allow depositories which operate principally a payment system or a SSS to credit with finality securities or other financial instruments to the accounts of their participants on the basis of an irrevocable and unconditional commitment 1) of a central bank, 2) of another operator of a payment or SSS authorised and supervised by the competent authorities of a Member State of the OECD, or 3) of a credit institution authorised and supervised by the competent authorities of a Member State of the OECD and authorised as a sub-depository by the above-mentioned intermediaries to credit such securities in their system to an account in the name of such depository or in the name of an intermediary or to otherwise deliver such securities to the depository. The ECB views this provision to be overly broad in scope. The equivalent of this

text: Article 18

text: in Belgian law, for example, is much more restrictive and cautious. Indeed, the third paragraph of Article

text: ° of the law of 2 January 1991 (as amended) makes it possible, but only by way of a specific Royal Decree, to authorise institutions which hold accounts in connection with the management of a securities clearing and settlement system to credit securities to the accounts of their participants on the basis of an irrevocable and unconditional commitment of the Nationale Bank van België/Banque Nationale de Belgique that the latter will credit such securities, within the same day and in the securities clearing and settlement system operated by the Nationale Bank van België/Banque Nationale de Belgique, to an account in the name of such institution, or, as the case may be, to an account in the name of an intermediary of such institution (in the securities clearing and settlement system operated by the National Bank van België/Banque Nationale de Belgique). It is also noted that the Banque centrale du Luxembourg does not, as is the case for the National Bank van België/Banque Nationale de Belgique, operate a securities clearing and settlement system.

text: 9. The ECB is of the view that provisional crediting of securities to the accounts of investors in a SSS prior to the final delivery of such securities ought to be avoided to the extent possible considering that doing so is of a nature to increase the systemic risk inherent in such systems. It may be allowed on a case-by-case basis only and after examination of the identity and financial strength of the entities involved. A general statutory authorisation of such provisional crediting is hence not advisable. System operators who decide to credit a securities account prior to the final delivery of such securities must be fully aware of the risks incurred and take appropriate safeguards in order to protect the interests of the investors and system participants.

text: 10. Lastly, the ECB is of the view that the opportunity of this Draft Law 1 could be taken to introduce into Luxembourg law a statutory provision on segregation by depositories of clients’ accounts and assets similar to the provision of Article 2.1 of Circular 2000/15 of the Commission de Surveillance du Secteur Financier. Draft Law 2

text: 11. The ECB welcomes the Luxembourg initiative to confirm the validity and enforceability vis-à-vis third parties of the collateralisation technique of fiduciary transfer of title (i.e. transfer of ownership intended to serve as security) used by professionals of the financial sector, both in situations of going concern and of bankruptcy. Outright transfer of title to collateral, as opposed to other forms of security interest, can be an attractive option for collateral takers and is indeed required under certain standard documentation governing securities lending, repurchase transactions and derivatives transactions. The ECB confirms that it has no objection to this opinion being made public by the competent national authorities at their discretion. Done at Frankfurt am Main on 9 October 2000. The President of the ECB [signed] Willem F. DUISENBERG

type: vagledning

utgivare: ecb


text: Council Regulation (EC) No 2531/98 of 23 November 1998

text: concerning the application of minimum reserves by the European Central Bank,

text: Council Regulation (EC) No 2532/98 of 23 November 1998

text: concerning the powers of the European Central Bank to impose sanctions,

text: Council Regulation (EC) No 2533/98 of 23 November 1998

text: concerning the collection of statistical information by the European Central Bank,

text: Regulation (EC) No 2818/98

text: of the European Central Bank of 1 December 1998 on the application of minimum reserves, the

text: Regulation (EC) No 2157/99

text: of the European Central Bank of 23 September 1999 on the powers of the European Central Bank to impose sanctions as being amended,

text: Regulation (EC) No 2819/98

text: of the European Central Bank of 1 December 1998 concerning the consolidated balance sheet of the monetary financial institutions sector as being amended as well as the Decision of the European Central Bank of 7 July 1998 on the denominations, specifications, reproduction, exchange and withdrawal of euro banknotes as amended.

title: Opinion of the European Central Bank of 18 October 2000 on a draft law concerning the introduction of the euro in Mayotte and Saint Pierre-et-Miquelon, draft decree concerning the introduction of the euro in Mayotte and Saint Pierre-et-Miquelon and a related draft decision of the Governor of the Banque de France (CON/00/19)

text: Monsieur Jean-Pierre Jouyet Directeur du Trésor Ministère de l’Economie, des Finances et de l’Industrie 139, rue de Bercy F-75572 Paris Cedex 12 FRANCE

text: Draft law concerning the introduction of the euro in Mayotte and Saint Pierre-et-Miquelon, draft decree concerning the introduction of the euro in Mayotte and Saint Pierre-et-Miquelon and a related draft decision of the Governor of the Banque de France

type: rubrik

text: Dear Mr Jouyet,

text: On 19 September 2000 the European Central Bank (ECB) received your revised request for agreement on a draft law concerning the introduction of the euro in Mayotte and Saint-Pierre-et-Miquelon (hereinafter, the "draft law"), on the draft decree concerning the introduction of the euro in Mayotte and Saint-Pierre-et-Miquelon (hereinafter, the "draft decree") and a related draft decision of the Governor of the Banque de France (hereinafter, the "draft decision") pursuant to

text: Article 4 of Council Decision 1999/95/EC of 31 December 1998

text: concerning the monetary arrangements in the French territorial communities of Saint-Pierre-et-Miquelon and Mayotte (hereinafter, "

text: Council Decision 1999/95/EC

text: "). As a step towards reaching an agreement on the above-mentioned draft legal acts, may I therefore make the following observations.

text: The ECB understands that the three draft legal instruments are intended to ensure that those parts of Community law which are or will be necessary for the functioning of economic and monetary union are applied in Mayotte and Saint-Pierre-et-Miquelon. The draft law will make applicable the provisions contained in

text: Council Regulation (EC) No 1103/97 of 17 June 1997

text: on certain provisions relating to the introduction of the euro and

text: Council Regulation (EC) No 974/98 of 3 May 1998

text: on the introduction of the euro. In addition, Article 8 of the draft law stipulates that the Governor of Banque de France shall apply the measures necessary for performing the tasks laid down in Chapter 1 of Law No 93-980 of 4 August 1993 concerning the Statute of the Banque de France in order to ensure that these provisions give rise to the same effects as in metropolitan France. Article 9 of the draft law stipulates that the Government shall similarly apply in these two communities the provisions for which he is competent required for the introduction of the euro so that these provisions have the same effect

text: therein as in metropolitan France. The draft decree will make applicable

text: Article 1 of Council Regulation (EC) No 2866/98 of 31 December 1998

text: on the conversion rates between the euro and the currencies of the Member States adopting the euro as amended and the second sentence of

text: Article 11 of Council Regulation (EC) No 974/98

text: . Finally, the draft decision will make applicable three Council Regulations, three ECB Regulations and one ECB Decision . This decision ensures that the minimum reserve system, the ECB's ability to impose sanctions, the statistical reporting requirements and the rules concerning banknotes are applied in the same way in Mayotte and Saint-Pierre-et- Miquelon as in metropolitan France.

text: The ECB welcomes the fact that France, in order to comply with

text: in Mayotte and Saint-Pierre-et-Miquelon, is starting to ensure the application of those parts of Community law which are or will be necessary for the functioning of economic and monetary union.

text: In its present form, the draft law and the draft decree provide for the application of the three Council Regulations No 2866/98, No 1103/97 and No 974/98 in Mayotte and Saint-Pierre-et-Miquelon by means of a transposing law which reproduces these provisions, while future amendments to the three Council Regulations will need to be reproduced again by a new transposing French law. However, the ECB considers that the draft law, the draft decree and any other future similar law should (i) merely state that these Community legal acts are applicable in these territories, identifying them but without reproducing or attaching to the law the legislation referred to; and (ii) include a dynamic clause ensuring that any future amendments to these Community legal acts will apply directly in these territories without any further need for implementation. Such an approach would be preferable as it would ensure legal certainty concerning the powers of the Community in these matters, equal treatment with the euro area Member States and the integrity of single monetary policy.

text: In this regard, the ECB has been informed that the French Council of State has adopted an opinion according to which the introduction of the euro in Mayotte and Saint-Pierre-et-Miquelon could not take, as the ECB would prefer, the form of a law which merely makes the provisions of the Treaty relating to economic and monetary union and its secondary legislation applicable to these communities but that instead, the Council of State considers it necessary that the transposition law itself contain the Community provisions to be applied in those territories. The Council of State argues that a Member

text: State cannot proceed unilaterally to an extension, even partial, of a Treaty; in its view, the modification of the geographical application of a Treaty constitutes a revision of that Agreement, which operates in international law between the contracting parties and in principle according to the clauses providing for this in the Treaty itself.

text: However, taking into account that on 31 December 1998 the Council of the European Union unanimously agreed on

text: Article 123 (4)

text: EC (

text: Article 109

text: l (4)) of the EC Treaty) as the proper legal basis for the introduction of the euro in Mayotte and Saint-Pierre-et-Miquelon, the ECB considers that it is legally consistent with Community law that France, as mandated by the European Community, merely makes the provisions of the Treaty relating to economic and monetary union, and its secondary legislation, applicable to these communities through the draft law. Under these circumstances, the inclusion of a dynamic clause ensuring the direct applicability of any future amendments to this Community legislation in the above-mentioned territories seems to be perfectly feasible.

text: Having said this, the ECB would be prepared to accept the proposed approach as a possible implementation of

text: on the understanding that this is the only approach that is feasible under French law. In this case however, the following amendments to the draft texts would need to be made.

text: First, in Article 1 of the draft law, the words "or centimes" need to be deleted to bring the text in line with

text: that stipulates that "one euro shall be divided into one hundred cent".

text: Second, Articles 8 and 9 of the draft law would need to be amended in order to ensure not only that the relevant Community laws already in force are applied in Mayotte and St. Pierre et Miquelon but also that any amendments to these laws and also any future Community laws which are necessary for the functioning of economic and monetary union give rise to the same effect and enter into force in Mayotte and St. Pierre et Miquelon at the same time as in metropolitan France. To this end, Articles 8 and 9 of the draft law should be amended as follows:

text: Article 8 of the draft law: "The Governor of the Banque de France shall apply in the territorial communities of Saint-Pierre-et-Miquelon and Mayotte the measures necessary for performing the tasks laid down in Chapter 1 of Law No. 93-980 of 4 August 1993 concerning the Statute of the Banque de France, in particular those which are or will be necessary for the functioning of Economic and Monetary Union, in order to ensure that these provisions give rise to the same and simultaneous effect as in metropolitan France."

text: Article 9 of the draft law: "The Government shall similarly apply in these two communities the provisions for which he is competent required for the introduction of the euro and which are or will be necessary for the functioning of economic and monetary union, and which are not already covered by

text: Article 8

text: , in order to ensure that these give rise to the same and simultaneous effect as in metropolitan France".

text: Finally, the ECB considers that the draft law and the draft decree should indicate the Community origin of the legal text. The ECB understands that the implementation of Article 8 of the draft law by the draft decision of the Governor of the Banque de France, which has been attached for reasons of example only, will be subject to a separate consultation by the Banque de France.

text: If the above suggested changes were to be taken on board, I believe that the ECB would be in a position to give its agreement as required by

text: . I look forward to hearing from you in due course with a view to agreeing a revised version of the legislative framework as soon as possible.

text: Yours sincerely

text: [signed]

text: Willem F. Duisenberg


title: Opinion of the European Central Bank at the request of Bank of Greece under Article 105 (4), second indent, of the Treaty establishing the European Community and Article 4 (a) of the Statute of the European System of Central Banks and of the European Central Bank on a draft law concerning additional measures in implementation of Council Regulations (EC) 1103/97, 974/98 and 2866/98, as applicable, on the introduction of the euro (CON/00/21)

text: OPINION OF THE EUROPEAN CENTRAL BANK the European Community and Article 4 (a) of the Statute of the European System of Central Banks and of the European Central Bank on a draft law concerning additional measures in implementation of Council Regulations

text: (EC) 1103/97

text: 1. On 11 August 2000 the European Central Bank (ECB) received a request from the Bank of Greece for an opinion on a draft law concerning additional measures in implementation of Council Regulations

text: (EC) 1103/97

text: , 974/98 and 2866/98, as applicable, on the introduction of the euro (hereinafter “the Draft Law”).

text: 2. The ECB’s competence to deliver an opinion is based on

text: Article 2 of Council Decision 98/415/EC of 29 June 1998

text: on the consultation of the ECB by national authorities regarding draft legislative provisions , as the legislative proposal contains provisions concerning currency matters and means of payment. In accordance with the first sentence of Article 17.5 of the Rules of Procedure of the ECB, this ECB opinion has been adopted by the Governing Council of the ECB.

text: 3. The purpose of the Draft Law is to deal with the necessary adaptation of Greek legislation with a view to ensuring the national implementation of the regulatory framework for the introduction of the euro on 1 January 2001. The Draft Law regulates the status of the Greek drachma as legal tender until 28 February 2002. The Draft Law consists of 21 articles, replacing or amending existing currency legislation and regulating issues related to the introduction of the euro in Greece. OJ L 189, 3.7.1998, p. 42-43.

text: 4. The ECB welcomes the initiative of the Greek Government to prepare for the timely implementation of the measures necessary or appropriate for the changeover to the single currency both in the private and in the public sector. The Draft Law constitutes a comprehensive piece of legislative work, which encompasses a wide range of topics and areas with a view to ensuring the smooth introduction of the euro in the Greek legal system and in the Greek securities markets. The Draft Law introduces a simple method for the re-denomination of share capital and share trading without any additional costs for companies (see Articles

text: and

text: ). The ECB welcomes and overall assesses positively the provisions contained in the Draft Law and no major inconsistencies or problems are to be mentioned without prejudice to the observations made under Section 5. In practice, it would be possible to trade, settle and clear in euro stock exchange transactions of securities in Greek drachmae, without redenominating them (see

text: Article 18

text: , Section 1). The ECB would also like to suggest that the legislator may wish to provide in the Draft Law that the same method for the re-denomination of outstanding public debt can additionally be applied by the issuers of private bonds, according to the principle of “no compulsion, no prohibition”.

text: Article 1

text: provides for a general clause of substituting the euro for the Greek drachma.

text: Article 2

text: contains conversion and rounding rules. The ECB notes that, in accordance with the case-law of the European Court of Justice, which, in principle, prohibits the national legislator from repeating provisions of a regulation, Section 1 of Article 2 of the Draft Law should be deleted because national provisions should refrain from merely repeating paragraphs 1 to 4 of

text: Article 4

text: and

text: Article 5 of Council Regulation (EC) No 1103/97

text: since the Council Regulation is directly applicable in national jurisdictions.

text: Article 2

text: , Section 3, provides for a rounding of not less than two decimals for intermediate computations of sums that are not to be paid or accounted for. However,

text: Article 4(4) of Council Regulation (EC) No 1103/97

text: provides explicitly for a minimum rounding to three decimal digits for conversions from one national unit to the other. Therefore, as regards

text: Article 2

text: , Section 3, the ECB would welcome a clarification of its inapplicability to conversions between national currency denominations. Furthermore, the ECB welcomes the provision of Section 5 in

text: Article 2

text: 6. In its May 2000 Convergence Report, the ECB took note that, as far as legislation other than the Statute of the Bank of Greece is concerned, such legislation will be adapted in a law introducing the euro. In view of this observation, the ECB welcomes in particular the provisions in Section 1 of

text: Article 4

text: , and Sections 1 and 2 of Article 5 of the Draft Law that amend or repeal existing legislation relating to monetary, currency or foreign exchange issues as a result of the introduction of the euro in Greece.

text: Article 6

text: deals with tax provisions.

text: Article 7

text: supplements existing accounting provisions.

text: Article 8

text: deals with the re-denomination of public debt and introduces a one-year statute of limitation with the proviso in Section 6 for litigation concerning the application of the provisions therein. This should allow for clarity and legal certainty.

text: Article 9

text: gives the option to the State and legal persons to use the euro in their transactions with Greek customs authorities during the year 2001. However, the assessment, collection and refunding of customs duties and taxes, as well as any payments through the Greek customs authorities during the year 2001 shall be effected in Greek drachmae.

text: Article 10

text: empowers the Minister of Finance and the competent Minister to regulate in the area of Accounting of the State and of legal persons in public law. This provision, which is often used in the Draft Law, should allow for greater flexibility and efficiency when regulating matters of accounting.

text: Articles 11

text: to 14 amend provisions of the codified law of stock corporations (Law 2190/1920, as amended) and of the law on limited liability companies (Law 3190/1955, as amended).

text: Article 15

text: provides for dual display of prices.

text: Article 16

text: appoints already existing Committees for the Amicable Settlement of Consumer Disputes as a “Euro-Observatory”, i.e. as bodies to, amongst other tasks, hear, mediate and assist citizens with respect to changeover issues under the aegis of the Ministry of Development. Such measures are conducive to a smooth changeover and greater confidence of the public to the changeover.

text: Article 17

text: contains provisions regarding the euro logo.

text: Article 18

text: regulates issues related to the capital markets and the stock exchange.

text: Article 19

text: regulates the conversion and rounding of sanctions, administration fees and fines.

text: Article 20

text: imposes a fine in case of non-compliance with the provisions of the Draft Law and

text: Article 21

text: stipulates that this Law is intended to enter into force on 1 January 2001. These articles do not give rise to any specific remarks from the ECB’s point of view.

text: 9. The ECB confirms that it has no objection to this ECB opinion being made public by the competent national authorities at their discretion. Done at Frankfurt am Main on 1 September 2000. The President of the ECB [signed] Willem F. DUISENBERG


text: OJ L 139, 11.5.1998, p. 1-5.

text: Paragraph 1 of Article 15 of Council Regulation reads: “Banknotes and coins denominated in a national currency unit as referred to in

text: Article 6(1)

text: shall remain legal tender within their territorial limits until six months after the end of the transitional period at the latest; this period may be shortened by national law”

title: Opinion of the European Central Bank at the request of the Spanish Ministry of Economy on a draft law of modification of Law 46/1998, on the introduction of the euro (CON/00/22)

text: 1. On 5 September 2000 the European Central Bank (ECB) has received a request from the Spanish Ministry of Economy for an opinion on a draft law amending Law 46/1998, on the introduction of the euro (hereinafter the “Draft Law”).

text: 2. The ECB’s competence to deliver an opinion on the Draft Law is based on Article 2 (1), first indent, of the Council Decision (

text: ) of 29 June 1998 on the consultation of the ECB by the authorities of the Member States on draft legislative provisions, as the legislative proposal contains provisions concerning currency matters. In accordance with

text: Article 17.5

text: , first sentence, of the Rules of Procedure of the European Central Bank, this ECB Opinion has been adopted by the Governing Council of the ECB.

text: 3. The Draft Law is purported to amend Law 46/1998 on the introduction of the euro (hereinafter “Law 46/1998”). Law 46/1998 deals with the introduction of the euro and therefore concerns currency matters which fall within the consultative competence of the ECB under the aforementioned provisions. The ECB has already given its opinion at the request of the Spanish Ministry of Economy and Finance on the Law 46/1998 on 21 July 1998 (CON/98/31) (hereinafter the “Opinion on Law 46/1998”). The Draft Law now submitted is equally subject to the opinion of the ECB for the same reasons that applied to the Law 46/1998 that it modifies. This opinion must be read in the light of Opinion on Law 46/1998.

text: 4. The amendments proposed by the Draft Law concern (i) the shortening of the period during which banknotes and coins denominated in national currency units shall remain legal tender after the transitional period, as defined by Article 1 of Council Regulation 974/98 of 3 May 1998 on the introduction of the euro (hereinafter the “Council Regulation”), and their replacement by euro banknotes and coins (Articles 1, 2 and 3 of the Draft Law); and (ii) the empowering of the Ministry of Economy and Finance to adopt all necessary measures regarding both the front-loading of euro banknotes and coins and the optimal implementation of the Law 46/1998 concerning the period of exchange (Article 4 of the Draft Law).

text: 5. Article 1 of the Draft Law modifies

text: Article 2

text: , paragraph 2 of Law 46/98 reducing to two months after the end of the transitional period the time during which banknotes and coins denominated in pesetas may circulate simultaneously as legal tender with banknotes and coins denominated in euro, that is, until 28 February 2000 (as opposed to the previous 6 months – i.e. until 30 June 2002). Article 2 of the Draft Law gives a new wording to paragraph 1 of Article 24 of Law 46/98 in order to ensure that banknotes and coins denominated in pesetas may be exchanged against euro banknotes and coins until 30 June 2002, free of charge and according to the conversion rates, at the Banco de España and at Credit Institutions as defined under paragraph 2 of Article 24 of Law 46/98. In so far as the exchange after 1 July 2002 is concerned, Article 3 of the Draft Law modifies Article 25 of Law 46/1998. This new provision maintains the obligation of Banco de España, with the exclusion of credit institutions, to exchange banknotes and coins denominated in national currency units against euro banknotes and coins after the aforementioned date and provides that such exchange will be done in accordance with the general rounding rules contained in Article 11 of Law 46/1998.

text: 6. Finally, Article 4 of the Draft Law adds two new indents to the Second Final Article of Law 46/1998 which empower the Minister of Economy (i) to enact all rules necessary for the frontloading of limited quantities of banknotes and coins before 1 January 2002 with the aim of facilitating the transition to the new currency; and (ii) to enact all necessary rules to ensure the best implementation of the provisions of Law 46/1998 concerning the period of exchange.

text: 7. The Draft Law constitutes the exercise by the Kingdom of Spain of its prerogative under paragraph 1 of Article 15 of the Council Regulation, to decide on a shortening of the period when banknotes and coins denominated in national currency units may circulate as legal tender in its national territory after the end of the transitional period as defined in Article 1 of the Council Regulation. As such, the ECB welcomes the proposed amendments as they are in line with the initiatives adopted by all other participating Member States and since they will contribute to an earlier general circulation of the new euro banknotes and coins. The assessment is therefore positive, and no major inconsistencies or problems are to be mentioned. The ECB would, however, like to note that as the proposed amendments stand, credit institutions referred to under paragraph 2 of Article 24 of Law 46/1998, will remain under the obligation to exchange banknotes and coins denominated in pesetas against euro banknotes and coins, free of charge, until 30 June 2002, even though banknotes and coins denominated in pesetas will cease to be legal tender as from 28 February 2002. This solution is very much appreciated by the ECB as it guarantees citizens and undertakings a reasonable period to effectuate the exchange.

text: 8. In relation to the article 4 of the Draft Law, in view of the possibility that the decision-making bodies of the ESCB adopt rules concerning some aspects of the frontloading exercise by National Central Banks and in order to guarantee consistency between the actions of all public actors involved, the ECB recommends the addition of a sentence in the proposed new indent c) of Second Final Article of Law 46/1998 to the effect that, when adopting the necessary measures to ensure the frontloading of banknotes denominated in euro, the Minister of Economy should act consistently with the acts adopted by the Banco de España in the exercise of its role within the ESCB.

text: 9. Finally, the ECB requests that it be consulted with respect to any royal decree and/or ministerial order to be enacted pursuant to the Law 46/1998, as eventually amended by the proposed Draft law.

text: 10. The ECB confirms that it has no objection to the publication of this opinion at the discretion of the consulting authority. Done at Frankfurt am Main on 5 October 2000. The President of the ECB [signed] Willem F. Duisenberg


title: Opinion of the European Central Bank of 1 November 2000 at the request of the Danish Ministry of Economic Affairs on a draft Act amending the Securities Trading Act (CON/00/24)

text: 1 November 2000

text: OPINION OF THE EUROPEAN CENTRAL BANK of 1 November 2000 at the request of the Danish Ministry of Economic Affairs on a draft Act amending the Securities Trading Act (CON/00/24)

text: 1. On 27 September 2000 the European Central Bank (ECB) received a request from Danmarks Nationalbank, on behalf of the Ministry of Economic Affairs, for an ECB Opinion on a draft Act amending the Securities Trading Act (hereinafter referred to as the “Draft Law”).

text: 2. The ECB’s competence to deliver an Opinion is based on Article 105 (4), second indent, of the Treaty establishing the European Community (hereinafter referred to as the “Treaty”) and Article 2 (1), fifth and sixth indent, of Council Decision No.

text: of 29 June 1998 on the consultation of the European Central Bank by national authorities regarding draft legislative provisions, as the Draft Law contains rules (i) concerning payment and settlement systems and (ii) applicable to financial institutions which could have a material influence on the stability of financial institutions and markets. In accordance with

text: Article 17 (5)

text: , first sentence, of the Rules of Procedure of the ECB, this Opinion has been adopted by the Governing Council of the ECB. This Opinion is based on an unofficial English translation of the relevant provisions of the Draft Law.

text: 3. The ECB understands that the Draft Law has three main purposes: (i) to regulate the access to membership of a Danish securities settlement system or stock exchange for members from countries outside the EEA, which will be subject to the approval of the Danish Financial Supervisory Authority (hereinafter referred to as the “FSA”); (ii) to extend the provisions on insider trading and price manipulation to include crimes committed by Danish citizens, or persons resident in Denmark concerning securities, which are listed on stock exchanges and authorised marketplaces in third countries outside the EEA; and (iii) to extend the existing access for securities settlement systems and clearing participants to establish collateral rights in connection with settlement of securities trades to apply also to all payment systems, as well as participants thereof, with regard to loans granted in connection with the settlement of payments within the system. Finally, the Draft Law contains suggestions for some minor editorial amendments to the Securities Trading Act.

text: 4. It is noted that according to

text: Article 1(2)

text: and (13) of the Draft Law the existing scope of application for entities, which are eligible to become members of a stock exchange, is widened to cover a range of different financial entities.

text: 5. More importantly, the existing access for companies and branches both within and outside the EEA to become members of a securities settlement system is proposed to be specified by requiring an authorisation from the FSA before allowing remote membership from applicants from countries outside the EEA. A similar specification is suggested for remote membership of a stock exchange. The background for this legislative initiative is to be seen as a consequence of alliances between securities settlement systems and between stock exchanges across national borders as well as of technological advances, which have created a growing interest in remote membership of the Copenhagen Stock Exchange respectively the Danish Securities Centre.

text: 6. Based on the mutual recognition under the “European passport”, derived from the

text: Council Directive 93/22/EEC of 10 May 1999

text: 3 on investment services in the securities field, there is no requirement to obtain an authorisation from the FSA for members from the EEA. However, it is proposed that remote members from countries outside the EEA obtain such an authorisation from the FSA. The ECB has been informed that such a requirement is necessary to ensure that companies from these countries are subject to sound supervision in their respective home countries and/or in order to avoid financial instability in connection with acceptance of an applicants’ listing on the stock exchange. Furthermore, the FSA will only grant such an authorisation if a cooperation agreement has been concluded between the FSA and the supervisory authority in the applicant's home country. The acceptance of members from a third country shall not prevent the FSA from performing its supervisory tasks. Should the FSA find that an applicant is not subject to sound supervision, it may oppose the acceptance of that applicant as a member.

text: 7. The ECB notes that Article 1(6) of the Draft Law proposes that the existing prohibitions against insider trading and price manipulation are extended to also include securities that are accepted for listing or for trading on stock exchanges or which are traded in authorised marketplaces or equivalent regulated marketplaces outside the EEA. This will create a global prohibition against insider trading and price manipulation, which is reaching further than strictly required by the

text: Council Directive 89/592/EEC of 13 November 1989

text: on insider trading.

text: 8. Article 1(7) of the Draft Law proposes to extend the existing access for clearing centres and clearing participants to establish collateral rights in connection with settlement of securities trades to apply also to registered payments systems as well as participation therein with regard to loans granted in connection with the settlement of payments within such systems. The borrowers can be both direct and indirect participants in these payment systems. The proposal puts clearing centres and registered payment systems on the same footing, as is already the case for a number of other items such as netting and immediate realisation of collateral in case of a default. The ECB appreciates that under article 1(7) of the Draft Law, the area of application of the above-mentioned collateral rights is expanded to apply also in connection with settlement in the payment systems operated by the Danish central bank. As a whole, the new

text: Article 1(7)

text: will improve risk and liquidity management and, as laid down in the Directive

text: of the European Parliament and of the Council of 19 May 1998 on settlement finality in payment and securities settlement systems, reduce systemic risk at the same time.

text: 9. Traditionally, pledging of collateral includes the deposit of collateral security in specific securities in a safekeeping account. This has led to a binding of the securities portfolios, which are normally part of the participants' liquid reserve of securities used to manage the participants' risks. The suggested collateral right is seen to make the pledging of collateral within payment systems more flexible since the safekeeping account as such, and not the individual paper, constitutes the collateral. The ECB welcomes this initiative since it improves the participants' opportunities for effective risk and liquidity management and, at the same time, reduces systemic risk to the benefit of financial stability.

text: 10. The ECB confirms that it has no objection to this Opinion being made public by the competent national authorities at their discretion. Done at Frankfurt am Main on 1 November 2000. The President of the ECB [signed] Willem F. Duisenberg


text: On the 1.Euro-Justiz-Begleitgesetz the European Monetary Institute was consulted and has delivered an opinion on 13 February 1998 (CON/98/01).

title: Opinion of the European Central Bank of 26 October 2000 at the request of the Austrian Ministry of Justice pursuant to the second indent of Article 105(4) of the Treaty establishing the European Community and the second indent of Article 4(a) of the Statute of the European System of Central Banks and of the European Central Bank on a draft federal law containing ancillary measures for the introduction of the euro to be inserted in the legislation on cooperatives and amending the Act on Commercial and Industrial Cooperatives and the 1997 Cooperatives Audit Act (Law on the introduction of the euro in connection with cooperatives - Euro-GenBeG) (CON/00/25)

text: OPINION OF THE EUROPEAN CENTRAL BANK of 26 October 2000 of the Treaty establishing the European Community and the second indent of Article 4(a) of the Statute of the European System of Central Banks and of the European Central Bank on a draft federal law containing ancillary measures for the introduction of the euro to be inserted in the legislation on cooperatives and amending the Act on Commercial and Industrial Cooperatives and the 1997 Cooperatives Audit Act (Law on the introduction of the euro in connection with cooperatives - Euro-GenBeG) CON/00/25

text: 1. On 5 October 2000 the European Central Bank (ECB) received a request from the Austrian Ministry of Justice for an ECB opinion on a draft federal law containing ancillary measures for the introduction of the euro to be inserted in the legislation on cooperatives and amending the Act on Commercial and Industrial Cooperatives and the 1997 Cooperatives Audit Act (the draft law).

text: 2. The ECB’s competence to deliver an opinion is based on the first indent of

text: Article 2(1) of Council Decision 98/415/EC of 29 June 1998

text: on the consultation of the ECBank by national authorities regarding draft legislative provisions , as the legislative proposal contains provisions concerning currency matters. The Governing Council of the ECB has adopted this opinion in accordance with the first sentence of Article 17.5 of the ECB’s Rules of Procedure.

text: 3. The purpose of the draft law is to pattern for cooperatives the ancillary measures for the introduction of the euro which have been introduced by the 1.Euro-Justiz-Begleitgesetz (BGBl. I Nr. 125/1998) for joint stock companies. The draft law aims at making the euro available for cooperatives as soon as possible. In this context, the draft law contains provisions concerning the conversion of shareholdings, decisions thereon, accounting of conversion gains, as well as special provisions relating to legislation on cooperatives. The straight conversion of amounts in schillings would result in amounts in euro that are not whole numbers. To facilitate the of adjustment of shares that are not whole numbers, the draft law provides for simplified procedures. These are, however, only to apply if amounts of shares are only to be increased or reduced to the extent necessary to reach the nearest whole number of euro. In case of upward adjustment in this context, cash contributions are the normal procedure, but for ease of processing, the required amounts can also be covered from free reserves or net profit. In case of downward adjustment to the nearest whole number of euro, the draft law suggests two possible ways of appropriating the amounts. The amounts can (i) be allocated to an appropriated capital reserve; or (ii) be immediately paid out to the members of the cooperative. Furthermore, the draft law addresses the replacement of schilling amounts with euro amounts.

text: 4. The ECB welcomes the draft law which not only provides for technical adaptations such as the replacement of schilling amounts with euro amounts, but also aims at complying with

text: Council Regulation (EC) No 1103/97 of 17 June 1997

text: on certain provisions relating to the introduction of the euro and

text: Council Regulation (EC) No 974/98 of 3 May 1998

text: on the introduction of the euro . In this context, the draft Law addresses in its explanatory memorandum issues such as the continuity of contracts, the replacement of the Austrian schilling by the euro, rounding as well as the principle of “no prohibition no compulsion”.

text: 5. The ECB notes that the draft law does not contain specific rounding provisions but makes, in its explanatory memorandum, reference to Articles

text: and

text: of Council Regulation (EC) No 1103/97.

text: 6. The ECB confirms that it has no objections to this ECB opinion being made public by the competent national authorities. Done at Frankfurt am Main on 26 October 2000. The President of the ECB [signed] Willem F. DUISENBERG


text: OJ L 189, 3.7.1998, p. 42.

title: Opinion of the European Central Bank of 20 November 2000 at the request of Sveriges Riksbank on a draft law to amend the Sveriges Riksbank Act (1998:1385) (CON/00/26)

text: 1. On 23 October 2000 the European Central Bank (ECB) received a request from Sveriges Riksbank for an ECB opinion on a draft law amending the Sveriges Riksbank Act (1998:1385) (hereinafter referred to as the ‘draft law’), together with an explanatory memorandum proposing the requisite change of the Sveriges Riksbank Act (1998:1385) in accordance with the draft law (‘explanatory memorandum’).

text: 2. The ECB’s competence to deliver an opinion is based on the third indent

text: on the consultation of the ECB by national authorities regarding draft legislative provisions , as the legislative proposal contains provisions concerning the Swedish central bank legislation. In accordance with the first sentence of Article 17.5 of the Rules of Procedure of the ECB, the ECB opinion has been adopted by the Governing Council of the ECB.

text: 3. The explanatory memorandum and the draft law constitute a proposal that the current arrangement, where Sveriges Riksbank has six members of the Executive Board, shall be changed through an amendment to Article 4 of Chapter 1 of the Sveriges Riksbank Act (1998:1385), whereby the Executive Board shall consist of no more than six and not less than three members from 1 January 2001.

text: 4. The ECB has no objections to the amendment to the Sveriges Riksbank Act as proposed by the draft law.

text: 5. The ECB confirms that it has no objection to this ECB opinion being made public by the competent national authorities at their discretion. Done at Frankfurt am Main on 20 November 2000. The President of the ECB [signed] Willem F. Duisenberg


title: Opinion of the European Central Bank of 21 November 2000 at the request of the German Ministry of Economics and Technology on a draft decree amending the Decree concerning payment statistics data collection in Germany (CON/00/28)

text: 1. On 31 October 2000 the European Central Bank (ECB) received a request from the German Ministry of Economics and Technology for an ECB opinion on a draft decree amending the Decree concerning payment statistics data collection in Germany (hereinafter referred to as the "draft Decree").

text: 2. The ECB’s competence to deliver an opinion is based on the fourth indent of

text: Article 2(1) of Council Decision (EC) No 98/415 of 29 June 1998

text: on the consultation of the European Central Bank by national authorities regarding draft legislative provisions. In accordance with the first sentence of Article 17.5 of the Rules of Procedure of the ECB, this ECB opinion has been adopted by the Governing Council of the ECB.

text: 3. The draft Decree intends to raise the threshold for exemptions from reporting obligations for balance of payments purposes from DEM 5 000 to EUR 12 500 and to repeal the obligation to report import payments to the Deutsche Bundesbank with the objective of fostering the efficient operation of payment systems within the euro area and to reduce the statistical reporting burden of credit institutions and other reporting agents.

text: 4. The ECB welcomes the rise in the threshold for exemption from the obligation to report for balance of payments purposes from DM 5 000 to EUR 12 500 which is in line with the recommendation expressed in the opinion agreed in June 2000 by the Committee for Monetary, Financial and Balance of Payments Statistics.

text: 5. The ECB has no objection to removing the obligation to report payments for merchandise imports for balance of payments statistics purposes to the Deutsche Bundesbank as foreseen by the draft Decree and assumes that the change will not affect the overall quality of the German contribution to the euro area aggregates.

text: 6. The ECB confirms that it has no objections to this ECB Opinion being made public by the competent national authorities at their discretion. Done at Frankfurt am Main on 21 November 2000. The President of the ECB [Signed] Willem F. DUISENBERG


title: Opinion of the European Central Bank of 19 December 2000 at the request of the Netherlands Ministry of Finance under the second indent of Article 105(4) of the Treaty establishing the European Community and the second indent of Article 4(a) of the Statute of the European System of Central Banks and of the European Central Bank on a draft law enacting the specification of the Dutch system of coinage in connection with the introduction of euro banknotes and coins (Coinage Act 2002) (CON/00/29)

text: 1. On 24 November 2000 the European Central Bank (ECB) received a request from the Netherlands Ministry of Finance for an opinion on a bill of law amending the Coinage Act of 1987 in connection with the introduction of euro banknotes and coins.

text: 2. The ECB’s competence to deliver an opinion is based on the first and second indents of

text: Article 2(1) of Council Decision 98/415/EC of 29 June 1998

text: on the consultation of the European Central Bank by national authorities regarding draft legislative provisions , as the legislative proposal contains provisions concerning currency matters and means of payment. In accordance with the first sentence of Article 17.5 of the Rules of Procedure of the ECB, this opinion has been adopted by the Governing Council of the ECB.

text: 3. The objective of the draft law is to complement Community law, as laid down in

text: Council Regulation (EC) No 974/98 of 3 May 1998

text: on the introduction of the euro and in

text: Council Regulation (EC) No 975/98 of 3 May 1998

text: on denominations and technical specifications of euro coins intended for circulation , as amended by

text: Council Regulation (EC) No 423/1999 of 22 February 1999

text: , with a number of national provisions concerning euro coins, special coins that will only have legal tender status in the Netherlands, and coins without legal tender status. OJ L 189, 3.7.1998, p. 42. OJ L 139, 11.5.1998, p. 1. OJ L 139, 11.5.1998, p. 6. OJ L 52, 27.2.1999, p. 2. The ECB welcomes Article 6 of the draft law that clearly states that, in accordance with Article 106(2) of the Treaty, the aforementioned coins will be issued subject to the approval by the ECB of the volume of the issue.

text: 4. Guilder coins are only referred to in one article of the draft law. Article 9(2) of the draft law clarifies that the withdrawal and exchange of guilder coins (and sub-denominations thereof) will be decided by ministerial regulation. The Explanatory Memorandum notes that the public will be able to exchange these coins (and guilder banknotes) for euro coins (respectively banknotes) up to five years after 1 January 2002. The intention of the Dutch authorities is that until 1 January 2003, such exchange will be possible at commercial banks. This exchange will be free of charge until 1 April 2002. Subsequently after 1 January 2003 and until 1 January 2007, exchange of guilder coins will only be possible at the branch offices of De Nederlandsche Bank. The Explanatory Memorandum also notes that guilder coins will lose their legal tender status at midnight on 28 January 2002. This is in line with the Joint Declaration of the Council of the European Union concerning the introduction of euro banknotes and coins of 8 November 1999, according to which the transitional period of dual circulation of euro banknotes and coins and national banknotes and coins of the individual EU Member States is to last between four weeks and two months.

text: 5. Article 3 of the draft law specifies that the national side of euro coins minted in the Netherlands will be fixed by royal decree.

text: Article 4

text: adds the provision that the technical specifications and denominations of special coins with legal tender status (collector coins) will be determined by Order in Council. In accordance with the conclusions of the Ecofin Council meeting of 31 January 2000, the Explanatory Memorandum notes that the denominations, technical specifications and design of these collector coins will differ from that of euro coins. The withdrawal of special coins will be decided by ministerial regulation. It is noted that further measures might be necessary in this respect after the adoption of the draft Council Regulation which is currently being prepared on the protection of euro banknotes and coins against counterfeiting.

text: 6. Article 5 of the draft law contains the technical specifications of coins that do not have legal tender status. It is noted that Article 8 of the draft law empowers the Minister of Finance to appoint a special centre for the assessment and registration of counterfeit euro coins. This will be done in the context of the Technical Scheme for handling counterfeit euro coins which has been adopted by the Ecofin Council on 28 February 2000. The Explanatory Memorandum notes the Minister's intention of appointing the Koninklijke Nederlandse Munt (the Royal Netherlands Mint) as the Dutch authority for the assessment and registration of counterfeit euro coins. The Minister can issue rules concerning this assessment.

text: 7. Finally, the ECB welcomes the fact that those provisions in Dutch legislation which have become obsolete are explicitly repealed by the draft law's

text: Article 10

text: 8. The ECB confirms that it has no objection to this opinion being made public by the competent national authorities at their discretion. Done at Frankfurt am Main on 19 December 2000. The President of the ECB [signed] Willem F. DUISENBERG


text: OJ L 189, 3.7.1998, p. 42.

text: The ECB draws attention to the fact that it did not evaluate the compatibility of the draft law in this opinion with Community directives that may be applicable.

title: Opinion of the European Central Bank of 2 February 2001 at the request of the Danish Ministry of Economic Affairs on a draft law on financial services (CON/00/32)

text: 1. On 22 December 2000 the European Central Bank (ECB) received a request via Danmarks Nationalbank from the Ministry for Economic Affairs for an opinion on a draft law on financial services (draft law). Subsequently, the draft law has been revised and on 22 January 2001, the ECB received a request to take the revised draft law into account when drafting the opinion.

text: 2. The ECB’s competence to deliver an opinion is based on the second indent of Article 105(4) of the Treaty establishing the European Community (hereinafter referred to as the ‘Treaty’) and the sixth indent of Article 2(1) of Council Decision No

text: of 29 June 1998 on the consultation of the European Central Bank by national authorities regarding draft legislative provisions , as the draft law contains rules applicable to financial institutions which would have a material influence on the stability of financial institutions and markets. In accordance with the first sentence of Article 17(5) of the Rules of Procedure of the ECB, this opinion has been adopted by the Governing Council of the ECB.

text: 3. The ECB welcomes the draft law as it aims at ensuring uniform treatment of equivalent financial products, and introduces a number of simplifications and modernisation measures, thereby improving transparency and consistency. The draft law combines equivalent supervisory measures and other statutory provisions in the Commercial Banks and Savings Banks Act, the Act on Insurance Companies, the Act on Stockbroking Companies, the Mortgage Credit Act and the Act on Company Pension Funds into one Financial Services Act. It is noted that some of the provisions in question are adjusted in a number of respects (in terms of wording and general harmonisation), whereas other provisions are generally updated. On the other hand, it is proposed to retain, at present, the special characteristics of each financial sector in the sector-specific acts. The ECB welcomes the measures aimed at simplifying and increasing consistency of the financial services legislation. Likewise, the ECB welcomes the intention to review at a later stage the other parts of the financial acts with a view to further developing a unified structure and increased simplification of e.g. the provisions concerning the establishment of financial undertakings, authorisation to take up business as a financial undertaking, solvency and mergers.

text: 4. The draft law contains uniform definitions, which will apply to the individual types of business undertaking, which are subject to supervision, as well as to financial institutions and associated undertakings. Thus, it defines financial undertakings (consisting of stockbroking companies, insurance companies, commercial banks and mortgage credit institutions), credit institutions, financial institutions, parent companies, subsidiary companies and groups together with financial holding companies. It is noted that the definitions of credit institutions, financial institutions and parent and subsidiary companies are in accordance with the relevant Community directives2. ‘Financial undertakings’ is a new concept, but is at the same time not to be regarded as a new category of undertaking but as covering the above mentioned financial entities (which are all still individually defined in existing laws incorporating Community legislation). The scope of application of the draft law’s provisions on supervision is extended to include financial holding companies. According to the draft law, the Financial Supervisory Authority (FSA) may thus also collect information from and carry out inspections of these companies. The introduction of allencompassing definitions in one legal act is seen favourably by the ECB, since this measure is obviously apt to simplify and increase the transparency of this legislation.

text: 5. The draft law stipulates that financial undertakings and financial holding companies should be operated in accordance with fair business practice and best practice in the relevant sector, and the scope of undertakings which are already subject to similar provisions, is hence broadened to cover also stockbroking companies and financial holding companies. The provisions in the draft law require that the rules for best business practice be observed within each business area. The concept of fair and best practice is to be understood in accordance with current practice, but the FSA is competent to issue guidelines and executive orders concerning such practice and, thus, has the possibility of developing the concept further. These rules apply to all financial undertakings operating in Denmark, be it as a Danish financial undertaking or as a branch. It is also proposed that they should apply to financial services provided by foreign financial undertakings. The ECB is of the opinion that in adopting the rules, particular attention might be paid to their convergence with respective rules of other countries so as to ensure high standards in business practices. Close cooperation with the respective rule-making authorities of other Member States is encouraged by the ECB in order to achieve a high degree of convergence of practices throughout the Community.

text: 6. The draft law contains several provisions amending provisions in the existing financial legislation on professional secrecy. Thus, the existing rule that financial undertakings within a group may transfer normal information on customers is replaced by provisions regulating the transferral of such information for administrative purposes, including outsourcing, as well as for marketing and counselling purposes. The ECB notes that the confidential nature of the information is maintained irrespective of the transferral, and that the receivers of such information are also covered by the scope of the professional secrecy. Furthermore, the safeguard established by the requirement to obtain the consent of the customer for transfers of customer-related information for marketing purposes or, in order to offer customer counselling, should also be noted. The possibility to transfer information, which does not concern strictly private matters, to the parent company of a financial undertaking for use in the group’s risk management is maintained, provided that the parent company is a regulated financial undertaking or a financial holding company. The requirement to obtain a consent does not apply where the transfer of ‘general data’ takes place between undertakings within a group subject to professional secrecy. General data is understood to mean information concerning the name, address and residential status. Furthermore, the general data will have to (i) provide the basis for classification of customers; or (ii) be necessary for the receiving company to pursue justifiable interests. Such interests will only be considered to be justifiable if the transferral is necessary in order to undertake the task, which is the reason for the transferral and where the regard to the customer does not exceed this interest. Information about strictly private matters may under no circumstances be transferred without the consent of the customer. Finally, it is also noted that the formal requirements for customer consent are strengthened. In the future, the consent shall be in a written form, including in digital form, and in order to establish enhanced transparency, the financial undertakings are obliged to annually inform all customers of the scope of the consent obtained. A consent already made may be withdrawn at any point in time.

text: 7. The provisions in the draft law, which govern management related issues, i.e. provisions concerning management obligations as well as the freedom to hold other functions, the prohibition of speculative transactions, provisions concerning loans granted to members of the board of a financial entity covered by the draft law represents a harmonisation of equivalent provisions in existing financial legislation. Certain provisions have extended their scope of application, such as the requirement to use written procedures for all important areas of activities, which then would also apply to insurance companies once the draft law has been adopted by Parliament.

text: 8. It is noted that the provisions in existing legislation governing groups are consolidated by the draft law. A few amendments have been made in relation to the existing rules, to ensure that the consolidated statements are true and fair. Certain subsidiaries of insurance companies will not be included in the consolidation, and it will exclude capital paid up by companies in the group that are not included in the consolidated group accounts. Furthermore, a general provision is introduced to apply to all groups subject to supervision. The groups must comply with the capital adequacy requirements of legislation on financial supervision on a consolidated basis. In general, the consolidation applies solely to the capital adequacy requirements, although credit institutions and stockbroking companies are subject to additional provisions concerning large exposure, shareholdings, liquidity, etc. to be complied with on a consolidated basis. Finally, the provisions concerning intra-group transactions and intervention by the FSA vis-à-vis group structures have also been consolidated and harmonised. The ECB views the application of the above rules, notably on capital requirements, as a very important element in the supervision of financial services groups. The clarification of the scope of application of the respective rules on a group basis is viewed positively.

text: 9. The ECB notes that the provisions governing accounting-related matters have been amended (compared to the existing provisions) in conjunction with the consolidation, to take into account the latest developments in the accounting area, to the extent that this is in line with Community directives concerning financial services, in addition to the recently adopted Community accounting strategy based on international accounting standards (IAS) issued by the International Accounting Standards Committee (IASC). The provisions in question concerning annual reports, annual accounts and auditing should, according to the general comments made in the draft law, be viewed in conjunction with equivalent new provisions concerning stock-exchange listed companies in general, and against the background of recent international development in the accounting field. Financial undertakings are not subject to the general provisions concerning annual reports and the presentation of accounts. At present, accounting provisions are contained in the respective special financial legislation and executive orders issued by the FSA. The provisions in the draft law replace the accounting provisions with general provisions concerning presentation of accounts and they will be supplemented, as is the case under existing legislation, with detailed accounting provisions for each specific type of undertaking.

text: 10. On a technical level, the draft law represents a change from so-called transaction based accounts in favour of accounts based on the current value of assets and liabilities. Thus, the ‘fair value principle’ is introduced and the entry into force of the chapter on accounting has been postponed in order to assess the effect of the introduction of the above mentioned principle on the valuation of lending by credit institutions in particular. The ECB understands that further consideration will be given to the question of whether, and if so where, the executive orders could deviate from the general rule (a consideration especially in relation to credit institutions’ lending portfolio). Furthermore, the ECB understands that exemptions from the general rule will be applied in such a way that the existing valuation provisions are amended only so as to extend the application of fair value when Community directives allow for the full application of the principle. The draft law may, at a certain stage, result in significant changes in accounting for financial undertakings, notably in the principles to be applied to loan valuation by credit institutions. While the ECB welcomes steps aiming at a further harmonisation and an increase in the comparability and transparency of the accounting practices in the financial services sector, the ECB would like to encourage a close monitoring and assessment of the impact of changes in this area on the financial situation of financial undertakings, notably credit institutions. The ECB believes that a common strategy by as many Member States as possible would be desirable in this field.

text: 11. It is noted that the draft law allows for confidential information to be given to the Danmarks Nationalbank and foreign central banks where the information is necessary for the central banks in their capacity as monetary policy authorities or in their oversight of payment systems. While the ECB recognises that this provision maintains existing legislation, it suggests, for reasons of legal clarity, to reflect in this provision the establishment of the European System of Central Banks and of the ECB. In particular, a clarification that the ECB is within the scope of the provisions would be welcomed.

text: 12. The ECB confirms that it has no objection to this opinion being made public by the competent national authorities at their discretion. Done at Frankfurt am Main on 2 February 2001. The President of the ECB [signed] Willem F. DUISENBERG


text: The new wording of Article 65 of the organic law of Banco de Portugal reads as follows: ‘Notwithstanding the exclusive powers of the European Central Bank to authorise the issue,

text: Articles 6

text: to 9 of the organic law of the Banco de Portugal, as amended by decree-law No 337/90, shall remain in force up to 28 February 2002, from which date they shall be deemed revoked’.

title: Opinion of the European Central Bank of 26 January 2001 at the request of Portuguese Minister of Finance concerning two draft decree-law concerning (I) the dual circulation of banknotes and coins denominated in euro and in escudos; and (II) amendments to the organic law of the Banco de Portugal (CON/2001/1)

text: OPINION OF THE EUROPEAN CENTRAL BANK of 26 January 2001 at the request of Portuguese Minister of Finance concerning two draft decree-law concerning (I) the dual circulation of banknotes and coins denominated in euro and in escudos; and (II) amendments to the organic law of the Banco de Portugal (

text: 1. On 8 January 2001 the European Central Bank (ECB) received a request from the Portuguese Minister of Finance for an opinion on two draft decree-law concerning (I) the dual circulation of banknotes and coins denominated in euro and in escudos; and (II) amendments to the organic law of the Banco de Portugal.

text: 2. The ECB’s competence to deliver an opinion is based on the first, second and third indents of

text: Article 2(1) of Council Decision 98/415/EC of 29 June 1998

text: on the consultation of the European Central Bank by national authorities regarding draft legislative provisions , as the draft legislative proposals contain provisions concerning currency matters, means of payment and the national central bank statute. In accordance with the first sentence of Article 17.5 of the Rules of Procedure of the European Central Bank, this opinion has been adopted by the Governing Council of the ECB.

text: 3. The first draft decree-law contains the provisions necessary to implement into the Portuguese legal system Articles

text: and

text: of Council Regulation (EC) 974/98 of 3 May 1998 on the introduction of the euro . It deals with the period during which banknotes and coins denominated in escudos remain legal tender by limiting such period to two months after the end of the transitional period (Articles

text: and

text: ). This is in line with the common statement on the introduction of euro banknotes and coins issued by the ECOFIN Council on 8 November 1999 and with the solution adopted by a majority of participating Member States. The ECB has no objections to this solution and especially welcomes the measures adopted in the field of exchange and withdrawal of banknotes and coins denominated in escudos (Articles

text: and

text: ). The exchange and withdrawal of banknotes denominated in escudos will take place until 30 June 2002 at the counters of the Banco de Portugal and of credit institutions, and at the local offices of the tax authorities, thus contributing in a positive manner to a smoother cash changeover. It should be mentioned that whilst credit institutions are entitled to limit the volume and frequency of exchange operations, they will have to inform the Banco de Portugal in advance and will not be allowed to establish such limits if the Banco de Portugal is opposed thereto (

text: Article 3(2)

text: ). The same rules are applicable to the exchange and withdrawal of coins, with the particularity that the Banco de Portugal will accept coins for exchange at its counters until 31 December 2002 (

text: Article 4

text: 4. Article 5 of the draft decree-law deals with the automatic redenomination of bank accounts. Whilst not legally indispensable in the light of

text: Article 14 of Council Regulation (EC) 974/98

text: , this provision introduces an element of additional legal certainty in the large-scale operation involving the redenomination of bank accounts, which cannot be underestimated.

text: 5. Article 6 of the same draft legal act establishes a free-of-charge rule for the exchange and withdrawal of banknotes and coins, and for the redenomination of bank accounts, that also contributes to additional legal certainty and to a smoother cash changeover.

text: 6. Article 7(1) of the draft decree-law requires that only the conversion rate 1 euro = 200,482 escudos be applied for the exchange and withdrawal of banknotes and coins and for the redenomination of bank accounts. The ECB has doubts about the appropriateness of this provision in the light of Articles

text: and

text: of Council Regulation (EC) 974/98,

text: Article 4(3) of Council Regulation (EC) 1103/97 of 17 June 1997

text: on certain provisions relating to the introduction of the euro and

text: Article 1 of Council Regulation (EC) 2866/98 of 31 December 1998

text: on the conversion rates between the euro and the currencies of the Member States adopting the euro . Indeed, consistent case-law of the Court of Justice has established that Member States should not pass any measures having the effect of transposing a Community regulation into national legislation. Community regulations are an integral part of the national legal order and Member States are under the obligation not to introduce any measures that might affect the uniform interpretation and application of Community law. Converting provisions of a Community regulation into national legislation could be deemed to affect the uniform interpretation and application of Community law in a field where Member States are unable to adopt national legislation. However, the ECB understands that these provisions may be intended for reasons of clarity and to reinforce the principle that the exchange and withdrawal of banknotes and coins and the redenomination of bank accounts should be made without charge and without mark-up or commission; but would prefer the use of a cross-reference to the applicable provisions of Community law. The same considerations are applicable to Article 7(2) of the draft decree-law, dealing with rounding on the occasion of the exchange of banknotes and coins and the redenomination of bank accounts. Such rounding rules mirror

text: Article 5 of Council Regulation (EC) 1103/97

text: , and, as such, would not be legally necessary. However, it is admitted that such rounding rules would contribute to clarity and legal certainty for the cash changeover in Portugal and again could contribute to avoiding the imposition of fees or commission in the exchange and withdrawal of banknotes and coins, and the redenomination of bank accounts.

text: Article 8

text: grants to the Banco de Portugal regulatory powers to adopt additional provisions that may prove necessary to implementing the draft decree-law. The ECB has no objections to this solution and notes that it might prove extremely useful in order to ensure a smooth cash changeover.

text: Article 9

text: deals with sanctions and infringements to the provisions of the draft decree-law and to the regulations adopted for its implementation by the Banco de Portugal under the aforementioned

text: Article 8

text: . The ECB welcomes this provision as it ensures that appropriate sanctions will be levied in the case of infringement of the draft decree-law and the Banco de Portugal regulations adopted pursuant thereof (‘avisos’), namely where exchange obligations or the free-of-charge rules are not adhered to.

text: 8. Finally, with regard to the wording of Article 10 of the draft decree-law, the ECB would prefer that, for accounting reasons, a solution in line with the wording of Article 9(2) of the organic law of the Banco de Portugal, in the wording set forth by decree-law 337/90 of 30 October, would be used, so that a reference to the accounting treatment of national banknotes that are no longer legal tender would be maintained.

text: 9. The second draft decree-law dealing with amendments to the organic law of the Banco de Portugal contains two sets of rules. On the one hand, it covers the Banco de Portugal responsibility to issue its own official bulletin (amendments to

text: Article 59

text: ) and clarifies the legal nature of the Banco de Portugal according to the Portuguese legal system (amendments to Articles

text: and

text: ). On the other hand, it introduces in the organic law of the Banco de Portugal the necessary adaptations to terminate the legal tender status of banknotes and coins denominated in escudos. Indeed, the current wording of Article 65 of the organic law of the Banco de Portugal requires the approval of special legislation in order to repeal

text: Articles 6

text: to 9 of the organic law in the wording set forth by decree-law 337/90, Those Articles were kept in force by the said

text: Article 65

text: as they concern the issuance of banknotes denominated in escudos which retained their status as legal tender according to

text: Article 9 of Council Regulation (EC) 974/98

text: . The new wording of

text: Article 65

text: revokes those provisions in conformity with the termination of the legal tender status of banknotes denominated in escudos . Only this last set of rules relating to the cessation of the legal tender status of banknotes and coins denominated in escudos is relevant for the present opinion, as the other matters are mainly internal in nature.

text: 10. The ECB welcomes the new wording of Article 65 of the organic law of the Banco de Portugal as it ensures consistency with the provisions of the first draft decree-law on the dual circulation of banknotes and coins denominated in euro and in escudos, namely with Article 2 of that legal act; and embodies a necessary legal adaptation to the organic law of the Banco de Portugal in view of the cessation of the legal tender status of banknotes and coins denominated in escudos. As a consequence, Article 6(1) of the organic law of the Banco de Portugal law, in the wording set forth by Law 5/98 of 31 January, will become the only provision in the organic law of the Banco de Portugal dealing with banknote issuance. In this respect, the opportunity could be used to update the reference made in Article 6(1) of the organic law of the Banco de Portugal law to the EC Treaty, as

text: Article 105

text: a was renumbered by the Amsterdam Treaty as

text: Article 106

text: 11. The ECB confirms that it has no objection to this opinion being made public by the competent national authorities at their discretion. Done at Frankfurt am Main on 26 January 2001. The President of the ECB [signed] Willem F. DUISENBERG


title: Opinion of the European Central Bank of 11 April 2001 at the request of the French Ministry of Economy, Finance and Industry on a draft article of a legal act in the field of payment systems (CON/2001/2)

text: OPINION OF THE EUROPEAN CENTRAL BANK of 11 April 2001 at the request of the French Ministry of Economy, Finance and Industry on a draft article of a legal act in the field of payment systems (

text: 1. On 22 March 2001, the European Central Bank (ECB) received a request from the French Ministry of Economy, Finance and Industry for an opinion on a draft amendment to Article L. 141-4 of the French Monetary and Financial Code in the field of payment systems (hereinafter referred to as the ‘draft amendment’).

text: 2. The ECB’s competence to deliver an opinion is based on Article 105(4) of the Treaty establishing the European Community (hereinafter referred to as the ‘Treaty’), Article 3.1 of the Protocol on the Statute of the European System of Central Banks and of the European Central Bank, and

text: Article 2 of Council Decision 98/415/EC of 29 June 1998

text: on the consultation of the European Central Bank by national authorities regarding draft legislative provisions , as the draft amendment contains provisions concerning a national central bank, in addition to rules applicable to the smooth operation of payment systems in so far as it is intended to increase the capacity of the Banque de France to ensure such smooth operation. In accordance with the first sentence of Article 17.5 of the Rules of Procedure of the European Central Bank, this opinion has been adopted by the Governing Council of the ECB.

text: 3. The draft amendment is based on Article 105(2) of the Treaty and draws from the ECB’s policy statement of June 2000 relating to the ‘Role of the Eurosystem in the field of payment systems oversight’. The draft amendment extends the competence of the Banque de France to the security of the payment instruments themselves. According to the draft amendment, where the Banque de France considers that a payment instrument does not provide for sufficient security, it may recommend that its issuer adopt the corrective measures necessary to remedy that OJ L 189, 3.7.1998, pp. 42-43. situation. If these recommendations are not implemented, the Banque de France may decide to issue a negative opinion and to publish it. In order to carry out these tasks, the Banque de France shall carry out expert work and obtain relevant information.

text: 4. The ECB welcomes the introduction of the draft amendment. Indeed, safeguarding the security of payment instruments used by the public is one of the main objectives of the Eurosystem within its oversight competence. The security of payment instruments is of high importance for the Eurosystem in order to maintain the confidence of users of payment systems.

text: 5. The ECB notes that, pursuant to the first indent of the draft amendment, the provision introduced by the draft amendment applies to the payment instruments ‘defined by Article L. 311-3 of the Monetary and Financial Code with the exception of fiduciary money’. Article L. 311-3 of the Monetary and Financial Code is drafted broadly to cover all instruments which allow any person to transfer funds whatever the support or technical means used. Besides, the ECB understands that in France, making available to the customer or administrating payment instruments, including e-money instruments, is, according to Article L. 311-1 of the Monetary and Financial Code, a banking operation and that, consequently, all e-money products are covered by the draft amendment. However, it should be noted that the note presenting the draft amendment, which was attached to the request from the Ministry of Economy, Finance and Industry, states that the draft amendment empowers the Banque de France to ensure the security of scriptural payment instruments (‘moyens de paiements scripturaux’). For the sake of completeness, the ECB would appreciate a clarification that the draft amendment covers also all e-money products where the payment instrument is not necessarily linked to the credit or debit of a bank account.

text: 6. The last indent of the draft amendment provides that ‘In order to carry out these tasks, the Banque de France shall carry out expert work and obtain any relevant information’. The note presenting the draft amendment is more explicit than the draft amendment as far as the communication of information is concerned. It specifies that the Banque de France is empowered ‘to obtain from the issuers or from any party having an interest in the circulation of the payment instrument, all relevant information for the accomplishment of these tasks’. The ECB proposes the incorporation of these specifications in the draft amendment itself. This would make it clear in the legislation itself that the Banque de France has the power to obtain information from issuers or from any party having an interest in the circulation of the payment instrument.

text: 7. The ECB confirms that it has no objection to the publication of this opinion by the competent national authorities at their discretion. Done at Frankfurt am Main on 11 April 2001. The President of the ECB [signed] Willem F. DUISENBERG


text: OJ L 189, 3.7.1998, p. 42-43.

title: Opinion of the European Central Bank of 20 April 2001 at the request of the Euro Changeover Board of Ireland on a draft legislative proposal on certain provisions included in a draft Euro Changeover (Amounts) Bill, 2001 (CON/2001/5)

text: 1. On 27 March 2001 the European Central Bank (ECB) received a request from the Euro Changeover Board of Ireland for an ECB opinion on two provisions included in a draft Euro Changeover (Amounts) Bill, 2001.

text: 2. The ECB’s competence to deliver an opinion is based on

text: on the consultation of the European Central Bank by national authorities regarding draft legislative provisions1, as the legislative proposal contains provisions concerning currency matters, means of payment and payment and settlement systems. In accordance with

text: Article 17.5

text: , first sentence, of the Rules of Procedure of the European Central Bank, this ECB opinion has been adopted by the Governing Council of the ECB.

text: 3. The first provision in the draft Bill on which the ECB has been consulted concerns Section 135 of the Central Bank Act, 1989, which has been amended to provide, inter alia, that no person shall be compellable to make any payment or do any act on a day on which the TARGET system is closed where that person would not be so compellable on Christmas Day or Good Friday by virtue of any rule of law relating to banking. ‘A day on which the TARGET system is closed’ has been defined to mean such day or days as the ECB Governing Council from time to time decide to be a day or days on which the Trans-European Automated Realtime Gross settlement Express Transfer system will be closed. The ECB welcomes this clarification under Irish law which makes provision for the inability of a party to make payment or conduct banking transactions on days on which the TARGET system is closed. The flexible approach to the definition of a TARGET closing day is also consistent with the provisions regarding operating days contained in

text: Article 3

text: (d)(1) of the ECB Guideline of 3 October 2000 on a Trans-European Automated Real-time Gross settlement Express Transfer system (ECB/2000/9). The ECB notes, however, one drafting point: it is assumed that there is in fact th an established rule of law relating to banking in Ireland, perhaps dating back to the 19 century or arising at common law, whereby a person would not be compellable to make payments on Christmas Day or Good Friday, but the ECB is in fact unaware of the precise source of any such rule of law.

text: 4. The second provision in the draft Bill on which the ECB has been consulted concerns Section 5 of the Economic and Monetary Union Act, 1998, which has been amended to redefine the ‘participating Member States’ (i.e., Member States having adopted the euro) to include Greece and any other EC Member State adopting the single currency as its currency. The ECB welcomes this amendment, which will ensure that certain provisions of the 1998 Act relating to euro-denominated coins issued by the participating Member States will be applicable to coins issued by Greece and such other Member States.

text: 5. The ECB confirms that it has no objection to this ECB opinion being made public by the competent national authorities at their discretion. Done at Frankfurt am Main on 20 April 2001. The President of the ECB [signed] Willem F. DUISENBERG