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

text: See the ECB’s Convergence Report of December 2006, p. 210-212.

text: See the ECB’s Convergence Report of May 2007, p. 24.

text: So far, the Czech Government has not set an official target date for the adoption of the euro.

text: See, for example, ECB Opinion

text: of 19 December 2007 at the request of the Slovak Ministry of Finance on a draft law on the introduction of the euro in Slovakia and on amendments to certain laws.

text: See also ECB Opinion

text: of 13 March 2006 at the request of the Slovenian Ministry of Finance on a draft law amending the Law on Banka Slovenije.

text: OJ L 78, 25.3.2003, p. 16.

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

text: concerning the collection of statistical information by the European Central Bank, OJ L 318, 27.11.1998, p. 8.

text: In particular, a Bank Board member’s office terminates on: (i) the expiration of the term of office; (ii) resignation; (iii) taking up an incompatible office (see Article 15(1) of the draft law); (iv) the expiration of two months from the day on which written notice of relief from office is delivered unless the Bank Board member (or the Governing Council in case of the Governor) relieved from office seeks judicial review within this period; (v) entry into force of a judgment depriving the Bank Board member of competence to perform legal acts or limiting their competence to perform legal acts; and (vi) entry into force of a judgment convicting the Bank Board member of a wilful criminal offence.

text: Article 52 of the draft law largely mirrors the wording of the proposed amendment of Article 37 of the current law on ČNB, which was the subject of a recent consultation with the ECB – see ECB Opinion

text: of 7 January 2008 at the request of the Czech Ministry of Finance on a draft law concerning the distribution of powers between the Ministry of Finance and Česká národní banka to prepare and submit certain draft laws to the Government. The ECB understands that the proposed amendment is currently being discussed in the Government and that the wording of Article 52 of the draft law will be adjusted to reflect the final wording of the draft amendment.

text: See, for example, ECB Opinion

text: of 27 January 2006 at the request of the Central Bank of Cyprus on a draft law amending the Central Bank of Cyprus Laws of 2002 and 2003.

title: Opinion of the European Central Bank of 21 May 2008 at the request of Česká národní banka on a draft law on Česká národní banka (CON/2008/21)

text: OPINION OF THE EUROPEAN CENTRAL BANK of 21 May 2008 at the request of Česká národní banka on a draft law on Česká národní banka (

text: ) Introduction and legal basis

text: On 6 March 2008 the European Central Bank (ECB) received a request from Česká národní banka (ČNB) for an opinion on a draft law on Česká národní banka (hereinafter the ‘draft law’). The ECB’s competence to deliver an opinion is based on Article 105(4) of the Treaty establishing the European Community and the first, second, third, fourth and fifth 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 law relates to currency matters, means of payment, Česká národní banka, the collection, compilation and distribution of monetary, financial, banking, payment systems and balance of payment statistics, and payment and settlement systems. In accordance with the first sentence of Article 17.5 of the Rules of Procedure of the European Central Bank, the Governing Council has adopted this opinion.

text: 1. Purpose of the draft law

text: The main purpose of the draft law, which is to take effect on the date of the adoption of the euro in the Czech Republic, is to bring national legislation on ČNB’s status, competences and activities in line with the Treaty, the Statute of the European System of Central Banks and of the European Central Bank (hereinafter the ‘ESCB Statute’) and other relevant Community legislation, in particular with regard to the legal integration of ČNB into the Eurosystem. Given the scope and number of changes required in this regard, the Czech authorities have decided that the proposed legislation should take the form of a new law on ČNB. In the meantime, the currently applicable law, i.e. Law No 6/1993 Coll., on Česká národní banka, which was amended several times in recent years (hereinafter the ‘current law on ČNB’), will remain in force until the date of the adoption of the euro in the Czech Republic.

text: 2. General observations

text: 2.1 The ECB welcomes the Czech authorities’ efforts to achieve the required level of legal convergence. The draft law addresses several of the issues raised by the ECB in its December 2006

text: Convergence Report . However, it is important to reiterate that, pursuant to Article 109 of the Treaty, ‘each Member State shall ensure, at the latest at the date of the establishment of the ESCB, that its national legislation including the statutes of its national central bank is compatible with this Treaty and the Statute of the ESCB’. Thus, the Czech Republic was already obliged to ensure the compatibility of its national legislation as of the date of its entry into the European Union, i.e. on 1 May 2004. In the past, the ECB has identified inconsistencies between Czech national legislation in the areas of central bank independence, confidentiality and the prohibition on monetary financing and privileged access, on the one hand, and the relevant provisions of the Treaty and the ESCB Statute, on the other hand; so far these inconsistencies have not been removed, nor will they be removed altogether should the draft law be adopted. A different deadline applies, however, to the statutory requirements relating to the full legal integration of ČNB into the Eurosystem, which only need to enter into force at the moment that full integration becomes effective, i.e. the date on which the Czech Republic adopts the euro . 2.2 In the light of the above, adopting a new central banking law, which will only become wholly effective on the date of the adoption of the euro in the Czech Republic, raises certain concerns. First, since the current law on ČNB will remain in force until the date of the Czech Republic’s adoption of the euro, the existing incompatibilities identified in the ECB’s Convergence Reports, other than those related to its legal integration into the Eurosystem, will remain unresolved. This will constitute an ongoing breach of the Treaty obligation referred to in the preceding paragraph. Given that it is yet not known when the Czech Republic will adopt the euro, this situation could persist for some time . Therefore, the provisions of the draft law addressing known incompatibilities of the current law on ČNB that do not refer to the integration of ČNB into the Eurosystem should become effective immediately on adoption of the draft law. 2.3 Second, the fact that there could be a long interval between the adoption of the draft law and its coming into effect may present a number of practical difficulties. For instance, the draft law currently contains numerous references to various Community legal acts of relevance to its scope of application. By the time the draft law becomes effective, some of these references may be outdated as the legal acts in question may have been amended or replaced, thereby necessitating amendments to the adopted law before it comes into effect. 2.4 Finally, some of the provisions of the draft law repeat directly applicable Community law provisions. In the ECB’s view, this is unnecessary since, as stated on previous occasions, directly applicable Community law provisions do not need to be ‘transposed’ into domestic law .

text: 3. Specific observations 3.1 Provisions concerning ESCB-related activities

text: Coin issuance

text: Article 4(2)

text: (b) of the draft law recognises ČNB’s power to issue euro coins within the Czech Republic . While this provision contains a footnote reference to Article 106(2) of the Treaty, ČNB may consider inserting in

text: Article 4(2)

text: (b) an explicit reference to the powers of the Council and the ECB in relation to the issuance of euro coins and the approval of the volume thereof, respectively, following the example of

text: Article 4(2)

text: (a) of the draft law, which refers explicitly to the ECB’s powers over the issuance of euro banknotes.

text: Minimum reserves

text: 3.1.2 Article 30(1) of the draft law provides for ČNB’s contribution to the application of the ESCB’s minimum reserve system, while Article 30(2) of the draft law refers to the exercise of the ECB’s right to collect and verify information relating to minimum reserves. The ECB notes that, while the wording of

text: Article 30(1)

text: is unobjectionable (subject, nevertheless, to the insertion of a proviso specifying that, in the pursuit of its minimum reserve-related activities, ČNB must act in accordance with the relevant ECB regulations and guidelines),

text: Article 30(2)

text: is unduly restrictive and not strictly necessary in view of

text: Article 30(1)

text: . Therefore, ČNB may consider deleting Article 30(2) of the draft law.

text: Management of foreign reserve assets

text: 3.1.3 Article 31(2) of the draft law authorises ČNB to decide on the amount of its own foreign reserve assets and determine the investment rules. The ECB would like to draw attention to Article 31.2 of the ESCB Statute on foreign reserve assets held by national central banks (NCBs), providing that all operations in foreign reserve assets remaining with the NCBs after the transfer of foreign reserve assets to the ECB in accordance with Article 30 of the ESCB Statute must, above a certain limit to be established within the framework of Article 31.3 of the ESCB Statute, be subject to the ECB’s approval to ensure consistency with the exchange rate and monetary policies of the Community. To this end, an explicit reference to Article 31 of the ESCB Statute and to the legal framework adopted on the basis thereof would be warranted .

text: Banknote and coin reproduction rules

text: Article 36

text: (b) of the draft law authorises ČNB to stipulate, by means of a decree, the terms and conditions under which banknotes and coins may be reproduced and under which objects imitating them may be produced. In this regard, ČNB is invited to consider including a reference to the ECB’s reproduction rules for euro banknotes, as laid down in Decision ECB/2003/4 of

text: 20 March 2003 on the denominations, specifications, reproduction, exchange and withdrawal of euro banknotes . Provisions concerning the powers of ČNB in the field of statistics 3.1.5 Article 38(1) of the draft law refers to ČNB’s contribution to the compilation and production by the ECB and Eurostat, of Community statistics, stating that ČNB ‘shall transmit statistical information and individual data to the European Central Bank and Eurostat’. To the extent that this provision suggests that ČNB is under a legal obligation to transmit statistical information to Eurostat (other than balance of payments and international investment position statistics, in connection with which ČNB is the competent national authority in the Czech Republic), despite the fact that it is not a member of the European Statistical System, ČNB may wish to reconsider the drafting of this provision. 3.1.6 Article 45(2) of the draft law, referring to the treatment of confidential statistical data, provides that where statistical information is created by aggregating individual data for less than three reporting agents, ČNB may provide such information only as confidential data intended exclusively for statistical purposes and these data may only be published with such reporting agents’ consent. The ECB notes that

text: Article 8 of Council Regulation (EC) No 2533/98

text: on the confidentiality regime for ECB statistics, which takes precedence over Article 45(2) of the draft law, contains no such explicit restriction and would invite ČNB to consider the relationship between

text: Article 45(2)

text: and

text: Article 8 of Regulation (EC) No 2533/98

text: to the extent, at least, that the former would also apply to ECB statistics.

text: 3.2 Other issues

text: Bank Board member eligibility criteria and termination of office 3.2.1 The wording of Article 16(1) of the draft law, listing the reasons for which a Bank Board member’s office terminates , is not fully aligned with that of Article 14.2 of the ESCB Statute and should be modified accordingly. In addition, the wording of

text: Article 16(2)

text: which contains the grounds for dismissal of a Bank Board member should also be aligned with Article 14.2 of the Statute. In particular, the wording ‘if the Governor no longer fulfils the conditions required for the performance of his office stipulated by law’ should be replaced by ‘if the Governor no longer fulfils the conditions required for the performance of his duties as foreseen in Article 14.2 of the Statute’.

text: Legislative powers

text: 3.2.2 Article 52(1) of the draft law provides for the joint competence of ČNB and the Czech Ministry of Finance to prepare and submit to the Government draft legislation on currency, money circulation, the money market and the status, competence, organisation and activities of ČNB as the central bank of the Czech Republic. Under Article 52(2) of the draft law, ČNB assists the Ministry of Finance in preparing draft legislation on the financial market, payments, the regulation of electronic money and foreign exchange management and the law on the introduction of the single currency in the Czech Republic. The ECB considers that Article 52 of the draft law should be amended to provide that the respective legislative powers of ČNB and the Ministry of Finance are without prejudice to the powers of relevant EU authorities in this field.

text: Auditing

text: 3.2.3 Pursuant to Article 60(2) of the draft law, the accounts of ČNB ‘shall be audited by an independent auditor in accordance with the Statute’. Article 27(1) of the ESCB Statute requires that the accounts of the Eurosystem NCBs be audited by auditors that are independent and external. In order to comply with the ESCB Statute,

text: Article 60(2)

text: should therefore be amended to state that the auditor appointed to audit ČNB’s accounts should also be an ‘external’ auditor, in line with Article 27(1) of the ESCB Statute .

text: This opinion will be published on the ECB’s website.

text: Done at Frankfurt am Main, 21 May 2008.

text: [signed]

text: The President of the ECB

text: Jean-Claude TRICHET


text: Rättsakten signerades av Europaparlamentets och rådets ordförande den 23 april 2008, men har ännu ej publicerats och har därför inte erhållit något officiellt nummer.

text: Europeiska centralbankens statistikkrav inom området allmän ekonomisk statistik, augusti 2000 (uppdaterade i december 2004) finns tillgängliga på ECB:s webbplats www.ecb.europa.eu

text: Se ESS guidelines on seasonal adjustment, april 2008. Finns på engelska på http://www.cmfb.org (hemsidan för kommittén för valuta-, finans- och betalningsbalansstatistik, CMFB).

publisher: Europeiska centralbanken

sprak: sv

title: Europeiska centralbankens yttrande av den 23 maj 2008 över två förslag till kommissionsförordningar om genomförande av Europaparlamentets och rådets förordning om kvartalsstatistik över lediga platser i gemenskapen (CON/2008/22)

serie: con

text: Inledning och rättslig grund

type: rubrik

text: Den 13 maj 2008 mottog Europeiska centralbanken (ECB) en begäran från Europeiska gemenskapernas kommission om ett yttrande över två förslag till kommissionsförordningar om genomförande av Europaparlamentets och rådets förordning (EG) nr …/2008 om kvartalsstatistik över lediga platser i gemenskapen, det ena om förfaranden för säsongsjustering samt kvalitetsrapporter (nedan kallat det första förslaget till förordning) och det andra om definitionen av lediga platser, referensdatum för uppgiftsinsamling, specifikationer för uppgiftsöverföring samt genomförbarhetsstudier (nedan kallat det andra förslaget till förordning).

type: stycke

text: ECB:s behörighet att avge ett yttrande grundas på artikel 105.4 första strecksatsen i fördraget om upprättandet av Europeiska gemenskapen. I enlighet med artikel 17.5 första meningen i arbetsordningen för Europeiska centralbanken har detta yttrande antagits av ECB-rådet.

text: Allmänna kommentarer

text: 1. Uppgifterna över lediga platser i gemenskapen som omfattas av de båda förslagen till förordningar är viktiga för ECB. ECB har offentliggjort vilken konjunkturstatistik ECB behöver för att genomföra penningpolitiken, vilket bl.a. omfattar uppgifter över lediga platser i gemenskapen. Därutöver framgår behovet av statistik över lediga platser av handlingsplanen om statistikkrav för ekonomiska och monetära unionen (EMU) som, på begäran av rådet (Ekofinrådet), utarbetats av Europeiska kommissionen (Eurostat) i nära samarbete med ECB; arbetet ledde även till framtagandet av europeiska ekonomiska huvudindikatorer som inkluderar statistik över lediga platser och antogs av Ekofinrådet den 18 februari 2003.

text: Det första förslaget till förordning

text: 2. Framtagandet av säsongsjusterade serier, på det sätt som anges i det första förslaget till förordning, är viktigt för sådana uppgifter över lediga platser i gemenskapen som används i ekonomisk analys som görs inom ett kalenderår. En annan viktig del av kvalitetssäkringen är framtagandet och publiceringen av kvalitetsrapporter om uppgifterna.

text: 3. ECB välkomnar säsongsjusterade och arbetsdagsjusterade uppgifter över lediga platser så snart uppgifter för 16 kvartal föreligger. Det skulle också vara fördelaktigt om de metoder som beskrivs i det europeiska statistiksystemets riktlinjer för säsongsjusteringar skulle användas i arbetet.

text: 4. Kvalitetsrapporter såsom framgår av bilagan till det första förslaget till förordning är värdefulla manualer genom vilka användarna kan ges information om statistikens specifika kvalitet. ECB skulle välkomna om de nationella rapporterna fick större spridning bland användarna.

text: Det andra förslaget till förordning

text: 5. ECB stöder målsättningen i det andra förslaget till förordning, nämligen att införa definitioner och referensdatum som beaktar användarnas behov men samtidigt belastar uppgiftslämnarna så lite som möjligt.

text: 6. ECB välkomnar att den rekommenderade referensperioden för uppgiftsinsamling är ett genomsnitt för perioden, medan man bibehåller möjligheten att använda sig av en skattning per ett visst datum om detta är representativt för perioden i fråga. Studier visar att tidpunkten för uppgiftsinsamling kan ha stor betydelse för uppgifterna. ECB föreslår därför att denna aspekt tas i beaktande i de kvalitetsrapporter som krävs enligt det första förslaget till förordning.

text: 7. ECB vill understryka vikten av de två genomförbarhetsstudierna som omnämns i bilagan till det andra förslaget till förordning.

punkt: a

text: Genomförbarhetsstudien för att bedöma hur kvartalsstatistik över lediga platser kan samlas in för avsnitten O, P, Q, R och/eller S i NACE Rev. 2 är viktig eftersom sysselsättningen inom dessa NACE-avsnitt omfattar mer än 35 % av all sysselsättning inom euroområdet.

punkt: b

text: Genomförbarhetsstudien för att bedöma hur kvartalsstatistik över lediga platser kan samlas in från verksamhetsenheter med färre än 10 anställda är viktig eftersom dessa verksamhetsenheter står för merparten av den sammanlagda sysselsättningen i många medlemsstater. Därutöver visar studier att dessa företag tenderar att skapa fler nya arbetstillfällen än större verksamhetsenheter.

type: vagledning

utgivare: ecb


text: ECB Opinion

text: of 19 December 2007 at the request of the Slovak Ministry of Finance on a draft law on the introduction of the euro in Slovakia and on amendments to certain laws. 3 OJ L 23, 26.1.2008, p. 30. 4 Article 18(1) of the Slovak Euro-Law: ‘The period of dual display during which the simultaneous dual display in the Slovak currency and the euro is implemented on a mandatory basis, in the established relevant scope of prices, payments and other amounts and in accordance with other stipulated rules, shall begin one month following the date when the conversion rate is fixed and shall end one year following the euro introduction date. Voluntary dual display may, under the stipulated rules, be implemented more broadly than in the mandatory scope of dual display; voluntary dual display may also be implemented, under the stipulated rules, outside the mandatory period of dual display but from the conversion rate fixing date at the earliest.’ 5

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

text: on certain provisions relating to the introduction of the euro (OJ L 162, 19.6.1997, p. 1). Regulation as amended by

text: Regulation (EC) No 2595/2000

text: (OJ L 300, 29.11.2000, p. 1).

text: See e.g. the introductory sentence of Article 15(9) of the Slovak Euro-Law as an enabling provision for the adoption of the second draft decree. 7

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

text: on the introduction of the euro (OJ L 139, 11.5.1998, p. 1). Regulation as last amended by

text: Regulation (EC) No 835/2007

text: (OJ L 186, 18.7.2007, p. 1). 8 Judgment in

text: Case C-19/03

text: Verbraucher-Zentrale Hamburg v O2 (Germany) GmbH & Co. OHG [2004] ECR I-8183 and

text: Case C-359/05

text: Estager v Receveur principal de la recette des douanes de Brive [2007] ECR I-00581. 9 Article 2(3) of the Slovak Euro-Law. 10

text: Article 2(4)

text: and (5) of the Slovak Euro-Law. 11 Article 41(8) of Law No 594/2003 Coll. on collective investment and including amendments to certain laws, as amended.

sprak: en

title: Opinion of the European Central Bank of 30 May 2008 at the request of Národná banka Slovenska on a draft decree laying down rules for the dual display of certain prices, payments and other amounts and on a draft decree laying down the number of decimal places of certain types of securities for the purpose of rounding by redenomination of their nominal value from the Slovak currency to the euro (CON/2008/23)

text: OPINION OF THE EUROPEAN CENTRAL BANK of 30 May 2008 at the request of Národná banka Slovenska on a draft decree laying down rules for the dual display of certain prices, payments and other amounts and on a draft decree laying down the number of decimal places of certain types of securities for the purpose of rounding by redenomination of their nominal value from the Slovak currency to the euro (

text: ) Introduction and legal basis

text: On 6 May 2008 the European Central Bank (ECB) received a request from Národná banka Slovenska (NBS) for an opinion on a draft decree laying down certain rules for the dual display of certain prices, payments and other amounts in the banking, capital market, insurance industry and pension saving sectors (hereinafter the ‘first draft decree’) and on a draft decree laying down the number of decimal places of certain types of securities for the purpose of rounding by redenomination of their nominal value from the Slovak currency to the euro (hereinafter the ‘second draft decree’). The ECB’s competence to deliver an opinion is based on Article 105(4) of the Treaty establishing the European Community and 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 first and second draft decrees (hereinafter collectively the ‘draft legislative provisions’) relate to currency matters and means of payment. In accordance with the first sentence of Article 17.5 of the Rules of Procedure of the European Central Bank, the Governing Council has adopted this opinion.

text: 1. Purpose of the draft legislative provisions

text: The first draft decree provides for dual display and other rules to convert certain amounts in the banking, capital market, insurance industry and pension savings sectors and is based on

text: Article 18(10)

text: (a)(2) of Law No 659/2007 Coll. on the introduction of the euro in Slovakia and including amendments to certain laws (hereinafter the ‘Slovak Euro-Law’). The second draft decree provides for rounding rules for certain types of securities and is based on Article 15(9) of the Slovak Euro-Law. The purpose of both draft legislative provisions is to implement the Slovak Euro-Law to facilitate Slovakia’s smooth changeover to

text: the euro.

text: 2. General observations

text: The ECB welcomes the draft legislative provisions as important preparatory measures for the eventual introduction of the euro in Slovakia. The ECB notes that both draft legislative provisions are based on enabling provisions contained in the Slovak Euro-Law providing for a possibility to adopt detailed technical implementing measures to facilitate the smooth changeover to the euro. The ECB has assessed this Law in Opinion

text: . In light of Commission Recommendation of 10 January 2008 on measures to facilitate future changeovers to the euro , published after adoption of the Slovak Euro-Law, the ECB notes that mandatory dual display should start as soon as possible after the Council’s official adoption of the irrevocably fixed conversion rate between the national currency and the euro. The Slovak Euro-law provides that mandatory dual display shall start one month after the conversion rate is fixed, allowing also for voluntary dual display outside the mandatory period . In view of the Slovak Euro-law and the Commission’s recommendation, the parties concerned should be encouraged to apply the draft legislative provisions in this regard from the day of fixing the conversion rate.

text: 3. Specific observations on the first draft decree on dual display of certain amounts in financial markets and financial institution services in certain sectors

text: Rounding rules

text: Article 9 of the first draft decree provides: ‘When converting insurance amounts from the Slovak koruna to the euro, the converted sum may be rounded up to the whole euro, whereby the whole euro means euro without cent.’ Even though the established method of rounding is not mandatory and may be interpreted as being in favour of the final beneficiary in line with Article 2(4) of the Slovak Euro-Law and its general principles, the ECB notes that an insurance amount is pursuant to

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

text: an amount to be paid or accounted for thus being rounded up or down to the nearest cent and therefore Article 9 of the first draft decree should be aligned with

text: Regulation (EC) No 1103/97

text: 4. Specific observations on the second draft decree on rounding rules and redenomination of certain types of securities

text: Article 1 of the second draft decree provides: ‘In respect of redenomination of the nominal value of equity securities, except for fund shares, from the Slovak koruna including the halier … to the euro including the cent …, the number of decimal places for the purpose of rounding the nominal value of one security shall be maximum four decimal places.’ Redenomination of the nominal value of all types of securities must comply with the principles and rules provided for by Article 2 of the Slovak Euro-Law , which is aligned with

text: Regulation (EC) No 1103/97

text: Regulation (EC) No 974/98

text: and the case-law of the Court of Justice of the European Communities . The Slovak Euro-Law distinguishes between (a) amounts in euro which are paid or accounted for (hereinafter the ‘cash final amount’) rounded to a number with two decimal places ; and (b) non-cash final amounts, which may be rounded to a higher number of decimal places thus ensuring the appropriate level of accuracy . The ECB questions the different method of rounding applying to the nominal value of equity securities pursuant to Article 1 of the second draft decree (four decimal places), on the one hand, and to the nominal value of mutual fund shares pursuant to Law No 594/2003 Coll. (six decimal places), on the other, since both nominal values can be considered as non-cash final amounts. In this case it appears that the principle of price neutrality and of the continuity of legal instruments is not precisely followed, thus substantially differing from Article 2 of the Slovak Euro-Law. The ECB therefore recommends ensuring that the same rounding method is used in draft legislative provisions for comparable non-cash amounts of all types of securities.

text: Done at Frankfurt am Main, 30 May 2008. [signed]

text: The President of the ECB

text: Jean-Claude TRICHET


text: Government Gazette Vol. A 37/30.3.1963. 2 The draft decision was discussed by the Banking and Credit Issues Committee of the Bank of Greece on 22 April 2008 (meeting No 258, topic No 14). 3 OJ L 189, 3.7.1998, p. 42. 4 Law relating to the taking up and pursuit of the business of credit institutions, capital adequacy of credit institutions and investment firms and other provisions, Government Gazette Vol. A 178/1.8.2007.

text: Subject to the provisions applying from time to time to transactions of credit and financial institutions with persons with which they have a special relationship,

text: Article 23

text: a sets out restrictions as regards the provision of credit, guarantees and collateral to or in favour of persons maintaining a ‘special relationship’ with the relevant credit institution. 6 As defined in Act No 2606/21.2.2008 of the Governor of the Bank of Greece, Codification of data and information that credit institutions are required to transmit to the Bank of Greece periodically for the supervision purposes – Replacement of Act No 2563/19.7.2005 of the Governor of the Bank of Greece – Determining of persons maintaining a special relationship with the credit institution, Government Gazette Vol. B 526/26.3.2008. Such Act was adopted pursuant to

text: Article 5(12)

text: (d) of Law No 3601/2007 which authorised the Bank of Greece, in order to fulfil its supervisory purposes and for transparency reasons, to determine the criteria according to which natural and legal persons are deemed to directly or indirectly maintain a ‘special relationship’ with a credit institution. 7 As for the rest, such transactions are governed by Sections 11 and 12 of Chapter ΙΙ of Act No 2577/9.3.2006 of the Governor of the Bank of Greece on the principles of operation and evaluation of internal audit systems of credit and financial institution, Government Gazette Vol A 59/20.3.2006. 8 Guideline ECB/2007/2 of 26 April 2007 on a Trans-European Automated Real-time Gross settlement Express Transfer system (TARGET2) (OJ L 237, 8.9.2007, p. 1). 9 Government Gazette Vol B 697/21.4.2008.

title: Opinion of the European Central Bank of 4 June 2008 at the request of the Bank of Greece on a draft decision establishing a derogation from Article 23a of Codified Law 2190/1920 on sociétés anonymes (CON/2008/24)

text: OPINION OF THE EUROPEAN CENTRAL BANK of 4 June 2008 at the request of the Bank of Greece on a draft decision establishing a derogation from Article 23a of Codified Law 2190/1920 on sociétés anonymes (

text: ) Introduction and legal basis

text: On 19 May 2008 the European Central Bank (ECB) received a request from the Bank of Greece for an opinion on a draft decision of the Banking and Credit Issues Committee of the Bank of Greece establishing a derogation from Article 23a of Codified Law No 2190/1920 on sociétés anonymes (hereinafter the ‘draft decision’) . The ECB’s competence to deliver an opinion is based on Article 105(4) of the Treaty establishing the European Community and, in particular, on the fifth and sixth indents of

text: on the consultation of the European Central Bank by national authorities regarding draft legislative provisions , as the draft decision relates to payment and settlement systems and to rules applicable to financial institutions insofar as they materially influence the stability of financial institutions and markets. In accordance with the first sentence of Article 17.5 of the Rules of Procedure of the European Central Bank, the Governing Council has adopted this opinion.

text: 1. Purpose of the draft decision

text: 1.1 The aim of the draft decision is to adjust the scope of specific Greek company law provisions, in order to enable certain transactions relating to credit institutions to be conducted, taking into account their nature and function. Indeed, pursuant to

text: Article 5(12)

text: (e) of Law No 3601/2007 , the Bank of Greece may, by way of derogation from the general provisions applying to sociétés anonymes, determine the procedures, maximum amounts and all other terms for the provision by credit institutions of any type of loans and other credits to persons with which they maintain a ‘special relationship’, guarantees in favour of such persons, as well as for the participation by credit institutions in such persons, in order to ensure that such transactions are not conducted on

text: preferential terms or in a manner that could operate to the detriment of the sound and prudent management of the credit institution. Pursuant to the abovementioned provision, the draft decision introduces a derogation from

text: Article 23

text: a of Codified Law No 2190/1920 with regard to the conduct of certain financial transactions between credit institutions and natural or legal persons with which they maintain a ‘special relationship’ , specifying that such transactions should not be conducted on preferential terms or in a manner that could operate to the detriment of the sound and prudent management of the credit institution concerned . 1.2 In the same context, the draft decision further allows credit institutions which maintain a special relationship with each other and which belong to the same ‘aggregated liquidity group’ within the meaning of Guideline ECB/2007/2 , as implemented in Greece by means of Monetary Policy Council Act No 66/8.4.2008 , to conduct specific transactions unconditionally, without being subject to the limitations of

text: Article 23

text: a of Codified Law No 2190/1920. This is intended to ensure a smooth migration of the domestic payment system to TARGET2 and an appropriate implementation of the TARGET2 legal framework, in particular for liquidity pooling purposes.

text: 2. General observations

text: This opinion addresses the provisions of the draft decision that pertain to the migration of Bank of Greece to TARGET2. Taking into account the fact that the Bank of Greece belongs to the third group of national central banks that migrated to TARGET2 on 19 May 2008, the ECB welcomes the draft decision as a necessary measure which will enable the Bank of Greece to successfully complete such migration and properly implement the TARGET2 legal framework, such implementation being subject to a separate assessment by the ECB. The ECB understands that pending the adoption of the draft decision, no credit institutions established in Greece may be admitted to the groups eligible to use the aggregated liquidity mode.

text: 3. Specific observations

text: The ECB has no specific observations on the draft decision. This opinion will be published on the ECB’s website. Done at Frankfurt am Main, 4 June 2008. [signed]

text: The President of the ECB

text: Jean-Claude TRICHET


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

text: ECB Opinion

text: of 19 December 2007 at the request of the Slovak Ministry of Finance on a draft law on the introduction of the euro in Slovakia and on amendments to certain laws. 3 ECB Opinion

text: of 30 May 2008 at the request of Národná banka Slovenska on a draft decree laying down rules for the dual display of certain prices, payments and other amounts and on a draft decree laying down the number of decimal places of certain types of securities for the purpose of rounding by redenomination of their nominal value from the Slovak currency to the euro. 4 Recommendation

text: (notified under document number C(2007)6912), OJ L 23, 26.1.2008, p. 30. 5 Article 18(1) of the Slovak Euro-Law reads: ‘The period of dual display during which simultaneous dual display in the Slovak currency and the euro is implemented on a mandatory basis, in the established relevant scope of prices, payments and other amounts and in accordance with other stipulated rules, shall begin one month following the date when the conversion rate is fixed and shall end one year following the euro introduction date. Voluntary dual display may, under the stipulated rules, be implemented more broadly than in the mandatory scope of dual display; voluntary dual display may also be implemented, under the stipulated rules, outside the mandatory period of dual display but from the date of fixing the conversion rate at the earliest.’

title: Opinion of the European Central Bank of 12 June 2008 at the request of the Slovak Ministry of Finance on a draft decree laying down the scope of prices, payments and other amounts subject to dual display with regard to the field of gambling games and methods of their dual display (CON/2008/25)

text: OPINION OF THE EUROPEAN CENTRAL BANK of 12 June 2008 at the request of the Slovak Ministry of Finance on a draft decree laying down the scope of prices, payments and other amounts subject to dual display with regard to the field of gambling games and methods of their dual display (

text: ) Introduction and legal basis

text: On 27 May 2008 the European Central Bank (ECB) received a request from the Slovak Ministry of Finance for an opinion on a draft decree laying down the scope of prices, payments and other amounts subject to dual display with regard to the field of gambling games and methods of their dual display (hereinafter the ‘draft decree’). The ECB’s competence to deliver an opinion is based on Article 105(4) of the Treaty establishing the European Community and 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 draft decree relates to currency matters and means of payment. In accordance with the first sentence of Article 17.5 of the Rules of Procedure of the European Central Bank, the Governing Council has adopted this opinion.

text: 1. Purpose of the draft decree

text: The draft decree, which constitutes secondary legislation implementing primary legislation, and is based on

text: Article 18(10)

text: (a)(5) of Law No 659/2007 Coll. on the introduction of the euro in Slovakia and including amendments to certain laws (hereinafter the ‘Slovak Euro-Law’), provides for technical instructions on the dual display of certain prices, payments and other amounts in the gambling games sector.

text: 2. General observations

text: The ECB notes that the draft decree is based on an enabling provision contained in the Slovak Euro-Law pursuant to which detailed technical implementing measures may be adopted to facilitate a smooth

text: changeover to the euro. The ECB has assessed the Slovak Euro-Law in Opinion

text: . Furthermore, ECB Opinion

text: assessed the issue of dual display in Slovakia in more detail. In line with the Commission Recommendation of 10 January 2008 on measures to facilitate future changeovers to the euro , published following adoption of the Slovak Euro-Law, the ECB reiterates that mandatory dual display should become effective as soon as possible after official adoption of the irrevocably fixed conversion rate between the national currency and the euro by the Council. The Slovak Euro-Law provides for mandatory dual display to start one month after the conversion rate is adopted, while also allowing for voluntary dual display both in advance of and following the mandatory period . Taking into account the Slovak Euro-Law and the Commission Recommendation, the parties concerned should be encouraged to apply the draft decree in this regard from the date of official adoption of the conversion rate.

text: 3. Specific observations

text: The ECB has no specific observations on the draft decree.

text: This opinion will be published on the ECB’s website.

text: Done at Frankfurt am Main, 12 June 2008.

text: [signed]

text: The Vice-President of the ECB

text: Lucas PAPADEMOS


text: Ordinance of the NBP President No 1/2003 on the detailed principles and procedure for replacing banknotes and coins which have ceased to be legal tender within the territory of the Republic of Poland as a result of wear and tear or damage (Dz. Urz. NBP of 15 January 2003 No 1, Item 1, as amended). Article 34(2) of the Law on Narodowy Bank Polski of 29 August 1997 forms the statutory basis (consolidated text: Dz.U. of 2005 No 1, item 2, as amended; hereinafter the ‘Law on NBP’). 2 OJ L 189, 3.7.1998, p. 42. 3 See ECB Opinion

text: of 25 September 2007 at the request of the President of Narodowy Bank Polski on a draft ordinance on the method and procedure for counting, sorting, packaging and labelling packaging units of banknotes and coins, and in conducting activities related to the supply of banknotes and coins to banks. 4 Although the draft ordinance does not refer to any specific currency,

text: Articles 32

text: to 34 of the Law on NBP, constituting the legal basis for the adoption of Ordinance No 1/2003, as amended by the current draft ordinance, limit the scope to the Polish currency issued by NBP.

text: See the explanatory memorandum to the draft ordinance, p. 1. 6 See e.g. paragraph 1(2) of the draft ordinance, amending paragraph 2(1)(2) of the NBP President’s Ordinance No 1/2003. 7 See paragraphs 2.1 and 2.3 of ECB Opinion

text: . 8 See Article 34(1) of the Law on NBP and further implemented by the NBP President’s Ordinance No 1/2003. 9 See Article 3(1) of Decision ECB/2003/4 of 20 March 2003 on the denominations, specifications, reproduction, exchange and withdrawal of euro banknotes (OJ L 78, 25. 3. 2003, p. 16). 10 See paragraph 1(3) of the draft ordinance.

text: Or, alternatively, when 50% or less of the euro banknote is presented and the applicant proves that the missing parts have been destroyed. See Article 3(1) of Decision ECB/2003/4.

title: Opinion of the European Central Bank of 16 June 2008 at the request of Narodowy Bank Polski on a draft ordinance amending the principles and procedure for replacing banknotes and coins which have ceased to be legal tender in Poland as a result of wear and tear or damage (CON/2008/26)

text: OPINION OF THE EUROPEAN CENTRAL BANK of 16 June 2008 at the request of Narodowy Bank Polski on a draft ordinance amending the principles and procedure for replacing banknotes and coins which have ceased to be legal tender in Poland as a result of wear and tear or damage (

text: ) Introduction and legal basis

text: On 21 May 2008 the ECB received a request from the President of Narodowy Bank Polski (NBP) for an opinion on a draft ordinance amending the NBP President’s Ordinance No. 1/2003 on the detailed principles and procedure for replacing banknotes and coins which have ceased to be legal tender in Poland as a result of wear and tear or damage (hereinafter the ‘draft ordinance’). The ECB’s competence to deliver an opinion is based on Article 105(4) of the Treaty establishing the European Community and the first and second indents of

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

text: 1. Purpose of the draft ordinance

text: The draft ordinance follows the NBP President’s Ordinance No 19/2007 of 24 October 2007 on the method and procedure to be used in counting, sorting, packaging and labelling banknotes and coins, on which the ECB commented in Opinion

text: . The draft ordinance, which regulates only the circulation of the Polish currency , has as its main objective ensuring compliance of the principles for

text: coin replacement with the principles for determination of coins unfit for circulation in the NBP President’s Ordinance No 19/2007 . As a result of the draft proposal, the criteria for replacing damaged coins will be defined in a more general manner, without referring to specific types of damage which may be incurred by coin elements .

text: 2. General observations

text: 2.1 The draft ordinance introduces into the NBP President’s Ordinance No 1/2003 a number of detailed technical amendments related mainly to circulation and the withdrawal of coins on which the ECB has no specific comments. 2.2 At the same time, the ECB would like to reiterate some of its more general comments made in Opinion

text: which are also valid in the context of the NBP President’s Ordinance No. 1/2003, as amended by the draft ordinance . While the ECB’s requirements for the exchange and withdrawal of euro banknotes in Member States that have adopted the euro currently do not apply to Poland as a Member State with a derogation, these requirements will apply once Poland adopts the euro and NBP becomes a fully integrated part of the Eurosystem. The ECB notes that NBP’s provisions on the principles and procedure for replacing banknotes differ substantially from the Eurosystem rules and that they will have to be aligned with Eurosystem practice before Poland adopts the euro. In the meantime, the continued divergence of the NBP’s provisions and Eurosystem practice gives rise to some concerns, as indicated in the following.

text: 3. Alignment of Polish legislation with the ECB’s legal framework

text: 3.1 From the underlying principle of the NBP President’s Ordinance No 1/2003, it follows that banknotes and coins which do not fulfil NBP’s conditions because of wear or damage cease to be legal tender in Poland and are subject to exchange . However, according to the ECB’s rules for euro banknotes, the status of genuine euro banknotes as legal tender is not affected by their physical condition, including such elements as mutilation or damage . 3.2 The ECB further notes the requirement in paragraph 3(1)(1) of the NBP President’s Ordinance No 1/2003, as amended by the draft ordinance , and in paragraph 7 of the NBP President’s Ordinance No 1/2003 following which banknotes may be exchanged if between 45% and 75% of a banknote’s original surface is presented, either in one piece (when presented to commercial banks) or possibly in a number of pieces (when presented to NBP’s branches). Such rules differ from the

text: ECB’s for euro banknotes, following which a Eurosystem national central bank may exchange a euro banknote for 100% of its face value if more than 50% of the euro banknote is presented, whether presented in one piece or not . 3.3 The ECB is concerned that the abovementioned provisions tend to diverge from the solutions already firmly established under the ECB’s legal framework for euro banknotes. In view of Poland’s future adoption of euro, the ECB invites the NBP to already consider aligning its standards for exchange and withdrawal of banknotes with a view to approximating these standards with the rules applicable to euro banknotes.

text: Done at Frankfurt am Main, 16 June 2008.

text: [signed]

text: The President of the ECB

text: Jean-Claude TRICHET


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

text: ECB Opinion

text: of 19 December 2007 at the request of the Slovak Ministry of Finance on a draft law on the introduction of the euro in Slovakia and on amendments to certain laws. 3 ECB Opinion

text: of 30 May 2008 at the request of Národná banka Slovenska on a draft decree laying down rules for the dual display of certain prices, payments and other amounts and on a draft decree laying down the number of decimal places of certain types of securities for the purpose of rounding by redenomination of their nominal value from the Slovak currency to the euro. 4 ECB Opinion

text: of 12 June 2008 at the request at the request of the Slovak Ministry of Finance on a draft decree laying down the scope of prices, payments and other amounts subject to dual display with regard to the field of gambling games and methods of their dual display. 5 Recommendation

text: (notified under document number C(2007)6912), OJ L 23, 26.1.2008, p. 30. 6 Article 18(1) of the Slovak Euro-Law reads: ‘The period of dual display during which simultaneous dual display in the Slovak currency and the euro is implemented on a mandatory basis, in the established relevant scope of prices, payments and other amounts and in accordance with other stipulated rules, shall begin one month following the date when the conversion rate is fixed and shall end one year following the euro introduction date. Voluntary dual display may, under the stipulated rules, be implemented more broadly than in the mandatory scope of dual display; voluntary dual display may also be implemented, under the stipulated rules, outside the mandatory period of dual display but from the date of fixing the conversion rate at the earliest.’ 7 OJ L 162, 19.6.1997, p. 1. Regulation as last amended by

text: Council Regulation (EC) No 2595/2000

text: (OJ L 300, 29.11.2000, p. 1).

text: For example, Article 19(2) of the draft decree provides that: ‘During the dual display period after the date of the introduction of the euro, the amount of benefit in euro shall, on conversion at the conversion rate, be rounded up to whole Slovak korunas and shall be displayed in Slovak korunas as well.’ which is in line with the current methodology and practice pursuant to Article 116(7) of the Law No 461/2003 Coll. on social insurance, as amended (i.e. rounding up to the nearest whole koruna). Contrary to this, for example,

text: Article 3(2)

text: and Article 10(2) of the draft decree provide that wage, salary or other payments or travel expenses, respectively, as an amount ‘[…] shall be rounded to whole Slovak korunas so that the total calculated remainder of the amount which is lower than one half of one Slovak koruna shall be rounded down to the nearest Slovak koruna, and the total calculated remainder of the amount which is equal to or is higher than one half of a Slovak koruna shall be rounded up to the nearest Slovak koruna’, while under the current methodology and practice pursuant to Article 130(1) of the Law No 311/2001 Coll. Labour Code, as amended, and pursuant to

text: Article 7(7)

text: and Article 8(2) of the Law No 283/2002 Coll. on travel expenses, as amended, amounts are rounded up to the nearest whole Slovak koruna.

title: Opinion of the European Central Bank of 1 July 2008 at the request of the Slovak Ministry of Labour, Social Affairs and Family on a draft decree laying down further detailed rules on the dual display, conversion and rounding of certain prices, payments and other amounts in the labour law and social security sectors on the euro changeover (CON/2008/27)

text: OPINION OF THE EUROPEAN CENTRAL BANK of 1 July 2008 at the request of the Slovak Ministry of Labour, Social Affairs and Family on a draft decree laying down further detailed rules on the dual display, conversion and rounding of certain prices, payments and other amounts in the labour law and social security sectors on the euro changeover (

text: ) Introduction and legal basis

text: On 9 June 2008 the European Central Bank (ECB) received a request from the Slovak Ministry of Labour, Social Affairs and Family for an opinion on a draft decree laying down further detailed rules on the dual display, conversion and rounding of prices, unit prices, payments and other amounts on the changeover from the Slovak currency to the euro in the fields of (i) wages, salaries and other remuneration for work; (ii) reimbursement of travel expenses; (iii) employment services; (iv) social insurance and retirement pension saving, social benefits, social assistance benefits, assistance in material need and other social support; and (v) social services (hereinafter the ‘draft decree’). The ECB’s competence to deliver an opinion is based on Article 105(4) of the Treaty establishing the European Community and 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 draft decree relates to currency matters and means of payment. In accordance with the first sentence of Article 17.5 of the Rules of Procedure of the European Central Bank, the Governing Council has adopted this opinion.

text: 1. Purpose of the draft decree

text: The draft decree, which constitutes secondary legislation implementing primary legislation and is based on

text: Article 18(10)

text: (a)(3) of Law No 659/2007 Coll. on the introduction of the euro in Slovakia and including amendments to certain laws (hereinafter the ‘Slovak Euro-Law’), provides for technical instructions on the dual display, conversion and rounding of certain prices, payments and other amounts in the labour law and social security sectors.

text: 2. General observations

text: The ECB notes that the draft decree is based on an enabling provision contained in the Slovak Euro-Law pursuant to which detailed technical implementing measures may be adopted to facilitate a smooth changeover to the euro. The ECB has assessed the Slovak Euro-Law in Opinion

text: . 3 4 Furthermore, ECB Opinion

text: and

text: assess the issue of dual display in Slovakia in more detail. In line with the Commission Recommendation of 10 January 2008 on measures to facilitate future changeovers to the euro , published following adoption of the Slovak Euro-Law, mandatory dual display should become effective as soon as possible after official adoption of the irrevocably fixed conversion rate between the national currency and the euro by the Council. The Slovak Euro-Law provides for mandatory dual display to start one month after the conversion rate is adopted, while also allowing for voluntary dual display both in advance of and following the mandatory period . Taking into account the Slovak Euro-Law and the Commission Recommendation, the parties concerned should be encouraged to apply the draft decree in this regard from the date of official adoption of the conversion rate.

text: 3. Specific observations

text: Article 3(2)

text: Article 10(2)

text: Article 14(2)

text: Article 15(2)

text: Article 18(2)

text: Article 19(2)

text: Article 29(2)

text: and Article 43(2) of the draft decree provide for conversion of amounts from the euro to Slovak currency during the dual display period after the euro introduction date and for rounding of these amounts in Slovak korunas. The amounts concerned are not monetary amounts to be paid or accounted for within the meaning of

text: Article 5 of Council Regulation (EC) No 1103/97 of 17 June 1997

text: on certain provisions relating to the introduction of the euro and, they therefore fall outside the scope of application of this Council Regulation. Nevertheless, the ECB notes that the draft decree applies different methodologies and practices of rounding which are also inconsistent with the methodologies and practices currently

text: provided for by specific Slovak laws in the labour law and social security sectors . As a result, under the draft decree different rounding rules will apply to comparable cases and comparable situations will be treated differently if addressed by the draft decree or by other laws currently in force in the labour law and social security sectors. The ECB would therefore suggest that either a consistent approach should be adopted to the comparable cases governed by the draft decree or if different rounding rules are used in different but comparable sections of the draft decree, the rationale for such different approaches should be explained. Furthermore, it should be ensured that Slovak citizens are well informed of the change in the current arrangements concerning rounding in relation to the euro changeover, as stated in the Commission Recommendation.

text: This opinion will be published on the ECB’s website.

text: Done at Frankfurt am Main, 1 July 2008.

text: [signed]

text: The President of the ECB

text: Jean-Claude TRICHET


text: KOM(2008) 250 slutlig.

text: SEC(2008) 2107 slutlig.

title: Europeiska centralbankens yttrande av den 3 juli 2008 på begäran av Europeiska unionens råd över ett förslag till rådets förordning om ändring av förordning (EG) nr 974/98 när det gäller införandet av euron i Slovakien och ett förslag till rådets förordning om ändring av förordning (EG) nr 2866/98 vad beträffar omräkningskursen till euron för Slovakien (CON/2008/28)

text: Inledning och rättslig grund

text: Den 20 maj 2008 mottog Europeiska centralbanken (ECB) en begäran från Europeiska unionens råd om ett yttrande över ett förslag till rådets förordning om ändring av förordning

text: (EG) nr 974/98

text: när det gäller införandet av euron i Slovakien. Den 30 juni 2008 mottog ECB en begäran från Europeiska unionens råd om ett yttrande över ett förslag till rådets förordning om ändring av förordning

text: (EG) nr 2866/98

text: vad beträffar omräkningskursen till euron för Slovakien.

text: ECB:s behörighet att avge ett yttrande grundar sig på artikel 123.5 i fördraget om upprättandet av Europeiska gemenskapen. I enlighet med

text: artikel 17.5

text: första meningen i arbetsordningen för Europeiska centralbanken har detta yttrande antagits av ECB-rådet.

text: Kommentarer

text: De föreslagna förordningarna kommer, efter upphävandet av Slovakiens undantag i enlighet med förfarandet i artikel 122.2 i fördraget, att möjliggöra införandet av euron som Slovakiens valuta.

text: ECB välkomnar de förslagna förordningarna.


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

text: See ECB Opinion

text: of 1 February 2008 at the request of the Portuguese Parliament on a draft law on the principles, rules and structure of the National Statistical System.

title: Opinion of the European Central Bank of 9 July 2008 at the request of the Bulgarian Prime Minister on a draft law amending the Law on statistics (CON/2008/29)

text: OPINION OF THE EUROPEAN CENTRAL BANK of 9 July 2008 at the request of the Bulgarian Prime Minister on a draft law amending the Law on statistics (

text: ) Introduction and legal basis

text: On 17 June 2008 the European Central Bank (ECB) received a request from the Bulgarian Prime Minister for an opinion on a draft law amending the Law on statistics (hereinafter the ‘draft law’). The ECB’s competence to deliver an opinion is based on Article 105(4) of the Treaty establishing the European Community and the fourth indent 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 law relates to the collection, compilation and distribution of statistics. In accordance with the first sentence of Article 17.5 of the Rules of Procedure of the European Central Bank, the Governing Council has adopted this opinion.

text: 1. Purpose of the draft law

text: The purpose of the draft law is to provide a clear legal framework for the implementation of the functions and tasks of the National Statistical System as a part of the European Statistical System. Primarily, the draft law sets out of the conditions under which the National Statistical Institute (NSI) and the statistics bodies are to fulfil their obligations under the annual European statistical programmes. It strengthens the requirements to protect statistical confidentiality, regulates the voluntary and mandatory use of administrative sources for the production of official statistical information, specifies the relationships between the NSI and the statistical bodies, and implements the principles laid down in the European Statistical Code of Practice.

text: 2. General observations

text: 2.1 The ECB welcomes the draft law which will optimise the reliability and efficiency of the statistical production process. 2.2 In that regard, it should be emphasised that ensuring effective cooperation between the national central bank, as a producer of statistics, and other statistical authorities is very important for the quality and cost-effectiveness of statistics. Depending on national circumstances and choices, this

text: aim can be pursued through different institutional settings. Whatever the general setting, the specific arrangements should aim to optimise the reliability and efficiency of the statistical production process, while preserving in all respects the independence of the central bank . 2.3 Moreover, the ECB notes that Article 4(5) of the Law on statistics provides that the NSI will collaborate closely with Българска народна банка (Bulgarian National Bank) by exchange of individual data for statistical purposes provided it is necessary for the development, production and dissemination of official national or European statistical information or statistical information of the ECB. Following this principle of effective cooperation, the ECB suggests clarifying in

text: Article 30(1)

text: that the Българска народна банка (Bulgarian National Bank) has access to the registers mentioned in this Article.

text: Done at Frankfurt am Main, 9 July 2008.

text: [signed]

text: The President of the ECB

text: Jean-Claude TRICHET


text: Directive

text: of the European Parliament and of the Council of 5 September 2007 amending

text: Council Directive 92/49/EEC

text: and Directives

text: and

text: as regards procedural rules and evaluation criteria for the prudential assessment of acquisitions and increase of holdings in the financial sector (OJ L 247, 21.9.2007, p. 1). 2 OJ L 189, 3.7.1998, p. 42.

text: The product may be linked, at a higher premium, to the guaranteed minimum rate of return. 4 See, e.g. paragraph 2.1 of ECB Opinion

text: of 4 April 2008 at the request of the Finnish Ministry of Finance on a draft government proposal for a law on the Financial and Insurance Supervisory Authority and certain related draft laws. 5 See ECB Opinion

text: of 25 of May 2001 at the request of the Austrian Ministry of Finance on the Law establishing and organising the financial market supervisory authority and amending several laws. 6 See ECB Opinion

text: of 5 November 2007 at the request of the Austrian Federal Ministry of Finance on a draft law amending the Law on banking, the Law on savings banks, the Law on the Financial Market Supervisory Authority and the Law on the Oesterreichische Nationalbank. 7 The Law on the Oesterreichische Nationalbank. 8 See paragraph 2.4 of ECB Opinion

title: Opinion of the European Central Bank of 18 July 2008 at the request of the Austrian Federal Ministry of Finance on the provisions introducing investment-oriented life assurance (CON/2008/30)

text: OPINION OF THE EUROPEAN CENTRAL BANK of 18 July 2008 at the request of the Austrian Federal Ministry of Finance on the provisions introducing investment-oriented life assurance (

text: ) Introduction and legal basis

text: On 9 June 2008 the European Central Bank (ECB) received a request from the Austrian Federal Ministry of Finance for an opinion on a draft law implementing Directive

text: amending the Law on banking, the Law on securities supervision, the Law on the stock exchange, the Law on savings banks, the Law on federal finance, the Law on insurance supervision, the Law on company pensions and the Law on financial conglomerates (hereinafter the ‘draft law’), and at the same time introducing a new investment instrument, namely investment-oriented life assurance. The ECB’s competence to deliver an opinion is based on the sixth indent of

text: on the consultation of the European Central Bank by national authorities regarding draft legislative provisions , as the draft law relates to rules applicable to financial institutions insofar as they materially influence the stability of financial institutions and markets. In accordance with the first sentence of Article 17.5 of the Rules of Procedure of the European Central Bank, the Governing Council has adopted this opinion.

text: 1. Purpose of the draft law and scope of the opinion

text: 1.1 According to the explanatory memorandum to the draft law, the proposed investment-oriented life assurance would allow proceeds from the premiums paid out under a specific life assurance contract to be invested in line with the pre-defined investment strategy specified in the contract. Proceeds gained from such specified investments will be attributed to the individual contract, whereas in unit-linked life assurance or index-linked life assurance, the investment is attached to an external fund or index. This differs also from classic life assurance, where all interest yields are equally distributed to the respective contracts. According to the explanatory memorandum, the

text: insurance company will hence be in a position to provide insurance products tailored to the client’s individual risk preferences with a guaranteed interest rate . 1.2 Under the draft law, insurance companies will also have to comply with conduct of business rules for transactions in unit-linked life assurance, and in investment-oriented life assurance without guarantee. It also empowers the Financial Market Authority, which supervises insurance companies, to exercise regulatory powers in that respect. 1.3 This opinion does not consider the measures intended to transpose Directive

text: and only focuses on the above summarised provisions introducing investment-oriented life assurance and conduct of business rules for insurance companies.

text: 2. The central bank’s financial stability role and exchange of information

text: 2.1 In previous opinions, the ECB has recognised that the nature and scope of risk in the financial sector is widening, due to closer links between credit institutions, insurance companies, investment firms and pension funds, as demonstrated by the emergence of hybrid financial products, the increased use of risk transfer instruments and the growing role of financial conglomerates . 2.2 Further, in keeping with the position taken by the ECB in previous opinions on draft national legislation, including its opinions on the 2001 reform of the Austrian financial supervision 5 6 framework and the reform of the banking supervision framework in Austria , the ECB considers that central banks are in general best placed to take on responsibility for financial stability, given their insight into money and financial market developments and their involvement in payment systems and monetary policy operations. This applies both to the normal conduct of business and in crisis situations. 2.3 Given the hybrid nature of the proposed investment-oriented life assurance, the Oesterreichische National Bank (OeNB) must have adequate access to information and data in relation to this product. The ECB understands that

text: Article 44

text: b(1) of the Law on the OeNB provides an adequate legal basis in this respect .

text: 3. Specific issues

text: 3.1 The ECB welcomes the introduction of conduct of business rules in relation to the abovementioned assurance products as they will enhance consumer protection. This opinion will be published on the ECB’s website.

text: Done at Frankfurt am Main, 18 July 2008. [signed]

text: The President of the ECB

text: Jean-Claude TRICHET


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

text: Amendment to

text: Article 33(1)

text: (d) of the BNR Statute, which adds the requirement that the internal organisational structure, indemnities, salaries and other pecuniary rights granted to the staff should be decided by BNR’s Board ‘according to the law’; amendment to Article 35(2) of the BNR Statute, which provides that the appointment of BNR’s staff in BNR’s headquarters and managers of the branches and agencies by the Governor should be done ‘based on a competition’ and ‘under the conditions set out in the law’ and amendment to Article 53 of the BNR Statute, which limits the maximum level of net remunerations for the members of the BNR’s Board to the annual remuneration of the President of Romania.

text: Amendment to Article 44 of the BNR Statute.

text: See ECB Convergence Report, May 2008, p. 246 to 249, available on the ECB’s website at http://www.ecb.europa.eu.

text: See ECB Opinion

text: of 24 May 2007 at the request of the Hungarian Ministry of Finance on a draft law amending the Law on the Magyar Nemzeti Bank.

text: See in particular ECB Opinion

text: of 21 February 2008 at the request of the German Ministry of Finance on a draft law amending the Law on the Deutsche Bundesbank and ECB Opinion

text: of 21 February 2008 at the request of the Italian Ministry of Economic Affairs and Finance on some provisions of the Law on the State annual and pluriannual budget (2008 Budget law).

text: See ECB Opinion

text: of 21 February 2008 at the request of the Italian Ministry of Economic Affairs and Finance on some provisions of the Law on the State annual and pluriannual budget (2008 Budget Law), paragraph 3.2.2.

text: See in particular ECB Opinion

text: of 2 August 2001 at the request of the German Ministry of Finance on a draft Seventh Law amending the Deutsche Bundesbank Act, paragraph 11.

title: Opinion of the European Central Bank of 21 July 2008 at the request of the Romanian Parliament on a legislative proposal amending Law No 312/2004 on the Statute of Banca Naţională a României (CON/2008/31)

text: OPINION OF THE EUROPEAN CENTRAL BANK of 21 July 2008 at the request of the Romanian Parliament on a legislative proposal amending Law No 312/2004 on the Statute of Banca Naţională a României (

text: ) Introduction and legal basis

text: On 12 June 2008 the European Central Bank (ECB) received a request from the Romanian Parliament, Senate Commission for Budget, Finance, Banking and Capital Market, for an opinion on a legislative proposal amending Law No 312/2004 on the Statute of Banca Naţională a României (hereinafter the ‘draft law’). The ECB’s competence to deliver an opinion is based on Article 105(4) of the Treaty establishing the European Community and the third indent 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 law relates to Banca Naţională a României (BNR). In accordance with the first sentence of Article 17.5 of the Rules of Procedure of the European Central Bank, the Governing Council has adopted this opinion.

text: 1. Purpose of the draft law

text: The draft law amends several provisions of Law No 312/2004 on the Statute of BNR (hereinafter the ‘BNR Statute’) regarding indemnities, salaries and other pecuniary rights granted to staff, recruitment and BNR’s organisation . Second, it excludes the possibility of renewal of the five-year term of office of the members of BNR’s Board . Third, it provides for the obligation for the Prime-Minister to participate in the meetings of the BNR’s Board, together with the Minister for Public Finance and one of the State Secretaries of the Ministry of Public Finance . Fourth, it provides that Parliament votes and decides on BNR’s annual report on its activities, annual financial statements and auditor’s report, which are currently only debated by Parliament . Fifth, it introduces a new paragraph in Article 35 of the BNR Statute

text: entrusting the Government with the task of proposing to the Parliament ‘constructive solutions aimed at achieving the objectives of economic and social development in Romania, according to the Governance Programme’. Finally, it introduces the concepts of ‘objective’ and ‘subjective’ reasons with respect to losses incurred by BNR during a financial year and the liability for such losses .

text: 2. General observations

text: 2.1 The compatibility of the national legislation of a Member State, including the statute of its national central bank (NCB), with the requirements of the Treaty and the Statute of the European System of Central Banks and of the European Central Bank (hereinafter the ‘ESCB Statute’) concerning central bank independence (Article 108 of the Treaty) must be ensured upon accession to the European Union. In the case of Romania, the compatibility requirement (Article 109 of the Treaty) should have been satisfied by 1 January 2007. 2.2 Instead of addressing the existing incompatibilities of the BNR Statute with the Treaty and the ESCB Statute, also highlighted in the ECB’s 2008 Convergence Report , the draft law introduces new incompatibilities with the Treaty and the ESCB Statute by limiting BNR’s independence. The draft law is, therefore, fundamentally incompatible with the Economic and Monetary Union related Treaty provisions and its enactment could trigger infringement proceedings before the Court of Justice of the European Communities. 2.3 The Treaty’s requirement of central bank independence reflects the generally held view that the primary objective of price stability is best served by a fully independent institution with a precisely defined mandate . The convergence reports of the European Monetary Institute and of the ECB, as well as the ECB opinions, have consistently confirmed the importance of central bank independence. It is of the utmost importance to design an institutional structure that guarantees the functional, institutional, personal and financial independence of BNR. 2.4 Contrary to the requirement of central bank independence, the proposed amendments to BNR’s Statute considerably limit BNR’s independence and clearly put pressure on BNR, its decisionmaking bodies, its members and BNR staff. Therefore, the draft law raises serious concerns to the ECB.

text: 3. Specific comments

text: Staff matters

text: 3.1 With respect to the amendments on staff matters, the ECB notes that an NCB may not be put into a position where it has limited or no control over its staff, or where the government of a Member

text: State is in a position to influence its policy on staff matters . According to the explanatory memorandum to the draft law, amendments to

text: Articles 33(1)

text: (d) and 53 of the BNR Statute regarding indemnities, salaries, and other pecuniary rights are necessary to provide for a legal basis for BNR’s decisions on these matters. However, it should be noted that the current version of

text: Article 33(1)

text: (d) of the BNR Statute already provides such legal basis, since it stipulates that BNR’s Board decides ‘under the conditions set out in the law ... on the internal organisational structure, indemnities, salaries and other pecuniary rights granted to the staff’. The purpose of the additional wording ‘according to the law’ is therefore unclear. It creates uncertainty concerning the applicable legislation to BNR’s staff-related matters and the relationship with the BNR Statute. 3.2 In addition, in order to ensure that the amended

text: Article 53

text: on the maximum level of net remunerations for BNR’s Board members is consistent with the Community requirements for personal independence of the members of NCBs’ decision-making bodies, the new legislation should be implemented so as to ensure that it does not affect the terms under which the current members of BNR’s Board have been appointed. Therefore, this aspect of the new legislation should only apply to future appointments .

text: Participants in the meetings of BNR’s Board

text: 3.3 The draft law adds the Prime-Minister to the list of third parties that participate in BNR’s Board meetings, together with the Minister for Public Finance and one of the State Secretaries in the Ministry of Public Finance; it also introduces an obligation for them to participate in such meetings . These amendments raise serious concerns with respect to the institutional independence of BNR in two respects: (i) the obligation of third parties to participate in BNR’s Board meetings must not impede the functioning of the meetings and, in particular, the absence of such third parties must not prevent the meetings from being held; and (ii) the participation of such third parties must not result in these third parties actually giving direct or indirect instructions to BNR, its decisionmaking bodies or its members. 3.4 In the context of the close cooperation between the European Union institutions, it may be noted that the President of the Council of the European Union and a member of the Commission of the European Communities have the possibility to participate, without voting rights, in the meetings of the ECB’s Governing Council . Nevertheless, such third parties are not obliged to participate in the meetings. This mirrors other forms of interaction, notably the fact that the ECB’s President is invited to participate in Council meetings when the Council is discussing matters relating to the ESCB’s objectives and tasks. Thus, the ECB would strongly recommend clarifying the scope of the

text: obligation of the Prime Minister and the Ministry of Public Finance representatives to participate in BNR’s Board meetings. Parliamentary vote and decision on the annual and audit reports and on the annual financial statements 3.5 The Parliament’s competence to vote on and adopt a decision on BNR’s annual report on its activities, annual financial statements and auditor’s report, could affect the institutional independence of BNR, as it goes beyond the transparency and accountability of a central bank towards the Parliament. 3.6 The ECB recalls that, in general, dialogue between NCBs and third parties is welcome and compatible with central bank independence, provided that: - this does not result in interference with the independence of the members of the NCB’s decision-making bodies; - the special status of Governors in their capacity as members of the ECB’s General Council is fully respected; - confidentiality requirements resulting from the ESCB Statute are observed. 3.7 A decision of the Parliament as regards these documents must not result in actually giving direct or indirect instructions, e.g. to amend the annual report, to BNR, its decision-making bodies or its members . Moreover, any rights of the Parliament to approve, suspend, annul or defer BNR’s decisions would be contrary to BNR’s institutional independence.

text: BNR’s statutory objectives

text: 3.8 The draft law introduces a new paragraph in Article 35 of the BNR Statute on the prerogatives of BNR’s Governor. It provides that the Government suggests to the Parliament ‘constructive solutions aimed at achieving the objectives of economic and social development in Romania, according to the Governance Programme’. This provision could be understood as establishing new objectives for BNR, as well as allowing the Government to give indirect instructions to or influence BNR, its decision-making bodies or its members. As such, it would be contrary to the principle of institutional independence of BNR. Moreover, it would also compromise the functional independence of BNR as it would contravene Article 105(1) of the Treaty and Article 2 of the ESCB Statute concerning the primary objective of price stability and the secondary objective of supporting the general economic policies in the Community.

text: Loss coverage

text: 3.9 Under the draft law, the loss incurred by BNR ‘based on objective reasons’ will be covered, as currently all of BNR’s losses (with no distinction) are covered, from the available sources in the following order: (a) special revaluation account; (b) statutory reserves. When BNR incurs a loss

text: ‘based on subjective reasons established by the Court of Auditors’, the loss will be covered by the persons found liable for the loss . 3.10 The ECB notes that such personal liability for losses resulting from ‘subjective reasons established by the Court of Auditors’ jeopardises the independence of BNR’s decision-making bodies and staff. If they were to incur financial liability linked to their performance of central banking tasks, which are complex, subject to a considerable degree of discretion and dependent on the national and international economic and financial environment, their capacity to function fully and independently would be seriously compromised as a result of the inhibiting effect that the risk of having to bear the damages would trigger. Indeed, NCBs cannot be hindered in making their decisions by the prospect of personal liability of their staff acting in good faith.

text: This opinion will be published on the ECB’s website.

text: Done at Frankfurt am Main, 21 July 2008.

text: [signed]

text: The President of the ECB

text: Jean-Claude TRICHET


title: Opinion of the European Central Bank of 23 July 2008 at the request of the Polish Minister for Finance on a draft law amending the Law on the Bank Guarantee Fund (CON/2008/32)

text: OPINION OF THE EUROPEAN CENTRAL BANK of 23 July 2008 at the request of the Polish Minister for Finance on a draft law amending the Law on the Bank Guarantee Fund (

text: ) Introduction and legal basis

text: On 23 May 2008 the European Central Bank (ECB) received a request from the Polish Minister for Finance for an opinion on a draft law (hereinafter the ‘draft law’) amending the Law of 14 December 1994 on the Bank Guarantee Fund (hereinafter the ‘Law on the Bank Guarantee Fund’). The ECB’s competence to deliver an opinion is based on Article 105(4) of the Treaty establishing the European Community and the third and sixth 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 law relates to Narodowy Bank Polski (NBP) and to rules applicable to financial institutions insofar as they materially influence the stability of financial institutions and markets. In accordance with the first sentence of Article 17.5 of the Rules of Procedure of the European Central Bank, the Governing Council has adopted this opinion.

text: 1. Purpose of the draft law

text: 1.1 The draft law proposes certain amendments to the regulation of the national deposit insurance scheme, managed by the Bank Guarantee Fund (hereinafter the ‘Fund’) . The ECB has already been consulted on two earlier versions of the amendments, as described in detail in ECB Opinions

text: and

text: . 1.2 The draft law introduces inter alia the following amendments to the Law on the Bank Guarantee Fund:

text: 1 Consolidated text: Dz.U. of 19 April 2007 No 70, Item 474.

text: 2 OJ L 189, 3.7.1998, p. 42.

text: 3 Participation in the deposit guarantee scheme operated by the Fund is mandatory for all banks established in Poland, including cooperative banks, but not for Polish credit unions operating on the basis of the Law of 14 December 1995 on cooperative savings and loan associations (Dz.U. of 4 January 1996 No 1, Item 2, as amended). The scheme is compulsory for branches of non-EU banks and optional for branches of EU credit institutions to the extent that their home country schemes do not ensure the level of deposit guarantees provided by Polish law (Articles

text: and

text: b of the Law on the Bank Guarantee Fund). For ease of reference, the entities covered by the mandatory deposit guarantee scheme operated by the Fund are referred to in this opinion as ‘commercial banks’.

text: 4 See ECB Opinion

text: of 27 August 2007 at the request of the Polish Minister for Finance on a draft law amending the Law on the Bank Guarantee Fund and ECB Opinion

text: of 17 January 2008 at the request of the Polish Minister for Finance on a draft law amending the Law on the Bank Guarantee Fund. (i) it abolishes NBP’s non-repayable annual subsidies for the Fund . NBP’s right to extend credit facilities to the Fund will be restricted to short-term credit facilities extended at NBP’s discretion to enable the Fund to repay guaranteed deposits, only insofar as the Fund’s own resources are insufficient and only where the stability of the banking system is threatened ; (ii) it introduces new rules for the Fund’s management of its financial resources. In particular, any balance sheet surplus of the Fund should, as a rule, be allocated to its assistance fund supporting the Fund’s operations to the benefit of distressed but still solvent commercial banks, rather than to the Fund’s core resources securing the repayment of guaranteed deposits in the event of a bank insolvency ; (iii) it modifies the rules for the Fund’s governance, regulation and supervision. Most of the NBP’s governance and regulation powers over the Fund will be eliminated or limited, as further specified in paragraph 3.1 .

text: 2. Compatibility with the monetary financing prohibition

text: 2.1 In line with its previous recommendations, the ECB welcomes the draft law insofar as it continues to propose abolishment of NBP’s annual subsidies of the Fund . 2.2 As regards the possibility of NBP extending credit facilities to the Fund, the ECB repeats its stance on the prohibition on monetary financing, as most recently expressed in its 2008 Convergence Report. In the Convergence Report, the ECB states that national legislation which provides for the ‘financing by NCBs [national central banks] of a public sector national deposit insurance scheme for credit institutions … would not be compatible with the monetary financing prohibition, if it is not short term, does not address urgent situations, systemic stability aspects are not at stake, and decisions do not remain at the NCB’s discretion’ . The ECB further notes that Article 43 of the Law on Narodowy Bank Polski and Articles 15(6) and 34(3) of the Law on the Bank Guarantee Fund, which empower NBP to grant credit to the Fund, are incompatible with the Treaty prohibition on monetary financing .

text: 5 At the same time, the method for calculating the commercial banks’ financial contributions to the Fund is modified (see Article 13 of the Law on the Bank Guarantee Fund, as amended by Article 1(9) of the draft law).

text: 7 See Article 1(13) of the draft law. The statutory application of the Fund’s various resources is regulated in paragraphs 28 to 31 of the Bank Guarantee Fund Statute (see the Annex to the Regulation of the Council of Ministers of 28 February 1995 on the adoption of the Bank Guarantee Fund Statute, Dz.U. of 6 March 1995 No 21, Item 113, as amended (hereinafter the ‘Fund Statute’)).

text: 8 See

text: Article 1(4)

text: , (5), (8) and (17) of the draft law. Among other things these amendments increase the Minister for Finance’s regulatory and supervisory powers over the Fund. Auditing powers exercised by the Supreme Chamber of Auditing are also strengthened (Article 3 of the draft law).

text: 9 See the ECB Convergence Report, May 2008, p. 244 (Section 6.7.3 ‘Monetary financing and privileged access’). Available on the ECB’s website at www.ecb.europa.eu. See also paragraph 2.2 of ECB Opinion

text: 10 See the ECB Convergence Report, May 2008, p. 24 (under ‘Financial support for deposit insurance and investor compensation schemes’).

text: 11 Law on Narodowy Bank Polski of 29 August 1997 (consolidated text: Dz.U. of 1 April 2005 No 1, Item 2, as amended (hereinafter the ‘Law on NBP’)).

text: 12 See the ECB Convergence Report, May 2008, p. 244. 2.3 The draft law will amend the conditions under which NBP may grant credit facilities to the Fund. Under the amended Article 34(3) of the Law on the Bank Guarantee Fund, such credit facilities may only be given for a short term, and only if: (i) the total amount of claims submitted for the repayment of guaranteed deposits exceeds the Fund’s accumulated resources; and (ii) the stability of the banking system is threatened . Further, Article 15(6) of the Law on the Bank Guarantee Fund, establishing the sources of finance of the Fund, is amended to reflect the amendments to Article 34(3) of the same Law . At the same time, the draft law amends Article 43 of the Law on NBP so that it will now provide: ‘In the event referred to in Article 34(3) of the Law on the Bank Guarantee Fund, Narodowy Bank Polski may extend a short-term credit facility to the Bank Guarantee Fund’ . 2.4 According to the consulting authority, the new regulation of conditions under which NBP’s credit facilities may be extended to the Fund is intended to ensure full compliance of the Law on the Bank Guarantee Fund with the monetary financing prohibition under Article 101(1) of the Treaty . The ECB welcomes this intention, but points to the remaining incompatibility. The Convergence Report states that central bank credit extended to a national deposit insurance scheme may only address urgent situations is not incorporated. To this effect, the amended Article 34(3) of the Law on the Bank Guarantee Fund needs to specify that credit facilities may only be granted for urgent needs of the Fund . 2.5 Other related comments in ECB Opinion

text: remain valid, as in particular referring to the classification of the Fund as a ‘body governed by public law’, the priority of commercial banks’ contributions over possible NBP credit facilities among the sources of Fund’s funding and the possible enhancement of the regulation of the NBP’s crediting of the Fund by way of including express references to adequate collateral and to compliance with Article 101 of the Treaty . 2.6 Moreover, the ECB notes the stronger emphasis by the draft law on the Fund’s assistance activity constituting financial support for the reorganisation and consolidation of commercial banks threatened with insolvency , which is differentiated from the Fund’s operations related to

text: 14 The proposed wording of Article 15(6) of the Law on the Bank Guarantee Fund, as amended by Article 1(12) of the draft law, specifies ‘short-term credit facility extended by NBP pursuant to

text: Article 34(3)

text: [of the Law]’ as one of the sources of finance of the Fund. The related provisions of the Law on the Bank Guarantee Fund specifying the mode of application and repayment of NBP’s credits are not affected.

text: 15 Article 43 of the Law on NBP, as amended by Article 4 of the draft law.

text: 16 See the third paragraph of the general part of the explanatory memorandum accompanying the draft law (p. 12 of the joint document containing the draft law and the explanatory memorandum) as well as specific remarks in point 15 of the explanatory memorandum (p. 17 of the joint document).

text: 17 See paragraph 2.5(ii) of ECB Opinion

text: 18 See paragraphs 2.4 and 2.6 to 2.7 of ECB Opinion

text: 19 See Article 1(13) of the draft law amending Article 16 of the Law on the Bank Guarantee Fund, as commented in point 19 of the specific remarks in the explanatory memorandum (p. 16 of the joint document containing the draft law and the explanatory memorandum). The assistance activity constitutes providing repayable financial assistance, under statutorily defined conditions, to commercial banks threatened with insolvency by, among other things, issuing credit facilities, guarantees and endorsements to such commercial banks, acquiring specified types of their loan portfolios and other receivables, or crediting the acquisition of bank shares or stocks. See also Article 4(2) of the Law on the Bank Guarantee Fund, as partly amended by Article 1(5) of the draft law. See also paragraph 4 of the Regulation of the Council of repayment of guaranteed deposits held by insolvent banks. In this respect, the ECB notes that the Law on the Bank Guarantee Fund stipulates that NBP’s credit facilities may only be used to fulfil the Fund’s task of protecting guaranteed deposits, hence excluding the use of NBP’s credits to finance any of the Fund’s other operations . From a Community law perspective, as consistently held by the ECB, any financing by the central bank of the tasks of a deposit guarantee fund which is a public sector body will be compatible with the monetary financing prohibition only subject to the introduction of the necessary safeguards related to solvency of the recipient institution, as most recently stated in the ECB Convergence Report of May 2008 .

text: 3. Governance of the Fund and coordination with the central bank’s financial stability role

text: 3.1 The draft law will make certain changes to the current institutional and regulatory regime for the

text: Fund which, as regards the powers of NBP’s President exercised in relation to the Fund: (i) reduces

text: the number of Fund Council members appointed by NBP’s President from four to two, and limits

text: the role of NBP’s President in selecting the Fund Council’s Chair ; (ii) NBP’s President will only

text: submit a non-binding opinion on draft regulations proposed by the Minister for Finance relating to

text: the Fund, instead of being a co-regulator of the Fund operations ; (iii) NBP’s President will lose his

text: current powers related to the selection of the Fund’s auditors ; and, on the other hand, (iv) NBP’s

text: President will obtain a new right to receive, together with the Minister for Finance, quarterly reports

text: on the activities and finances of the Fund .

text: 3.2 The ECB repeats its earlier observation that deposit insurance schemes are a key element of the

text: financial safety net and that effective coordination of their important functions with the overall role

text: of central banks in safeguarding financial stability should be ensured. This aim may be achieved

text: Ministers of 22 September 1999 on the trade by the Bank Guarantee Fund in the receivables acquired from banks threatened with insolvency (Dz.U. of 8 October 1999 No 80, Item 904).

text: 21 See the ECB Convergence Report, May 2008, p. 244 (Section 6.7.3 ‘Monetary financing and privileged access’) and paragraph 2.2 of ECB Opinion

text: 22 Currently the Prime Minister appoints the Fund Council’s Chair on a joint recommendation by the Minister for Finance and NBP’s President; the draft law provides for appointment by the Minister for Finance after consulting NBP’s President, the Chair of the Financial Supervision Commission and the Polish Banking Association (Article 1(6) of the draft law, amending

text: Article 6(3)

text: and (4) of the Law on the Bank Guarantee Fund).

text: 23 Currently, proposals for regulations in the following areas must be agreed between the Minister for Finance and NBP’s President: (1) the adoption of the Fund’s Statute; (2) setting the conditions for the Fund’s trading in the loans acquired from commercial banks threatened with insolvency; and (3) any additional Fund tasks concerning the provision of assistance to commercial banks. Further, NBP’s President adopts the regulation regarding remuneration of the Fund Council’s members in consultation with the Minister for Finance. These powers of NBP’s President will be replaced with the right to issue a non-binding opinion on the proposals submitted by the Minster for Finance (see Articles

text: (2a), 4(3) and 6(6) of the Law on the Bank Guarantee Fund, as amended by

text: Article 1(4)

text: (a), (5)(d) and (6) of the draft law). Additionally, NBP’s President will also obtain the right to issue a non-binding opinion on draft regulations by the Minister for Finance relating to special accounting rules for the Bank Guarantee Fund (see

text: Article 81(2)

text: (11) of the Law of 29 September 1994 on accounting (consolidated text: Dz.U. 2002 No 76, Item 694, as amended) as added by Article 2 of the draft law).

text: 24 See Article 17(2) of the Law on the Bank Guarantee Fund, as amended by Article 1(14) of the draft law, which provides that auditors are selected through a tender announced by the Fund Council (and no longer by NBP’s President). through, among other things, maintaining an adequate level of central bank involvement in the governance and regulation of the national deposit insurance scheme . 3.3 Moreover, the ECB notes that as a result of the supervisory reform completed on 1 January 2008, banking supervision responsibilities have been transferred from the defunct Banking Supervision Commission, a body closely associated with NBP, to the newly created Financial Supervision Commission, which is largely disconnected from NBP . In this new institutional setting, it is important to maintain channels for timely central bank access to information concerning financial market participants, relating in particular to crisis situations. Such meaningful access to prudential information, as possessed inter alia by the Fund, will allow NBP to properly perform its financial stability role. The ECB further notes that the financial stability role, as expressly introduced by the draft law in relation to the Fund , should also be expressed more explicitly in relation to NBP. Specifically, the ECB refers to paragraph 4.2 of ECB Opinion

text: : ‘Assuming the implementation of a supervisory reform weakening the existing institutional relationship between NBP and the banking supervisory authority, the ECB recommends amending the Law on NBP, so as to specify that NBP has a formal responsibility for contributing to financial stability by monitoring and assessing the financial system as a whole, as a separate function from hands-on supervision and financial regulation’ . 3.4 Finally, the ECB notes the introduction by the draft law of a procedure under which the members of the Fund’s governing bodies will be automatically dismissed if the Council of Ministers does not endorse the Fund’s financial report . This procedure is described by the explanatory memorandum to the draft law as ‘similar’ to the procedure for endorsement of the NBP’s financial report by the Council of Ministers . For clarification purposes, the ECB understands that in the context of submission of NBP’s financial report for endorsement by the Council of Ministers no dismissal sanction of any kind may be applied to members of the NBP’s governing bodies. This opinion will be published on the ECB’s website. Done at Frankfurt am Main, 23 July 2008. [signed] The President of the ECB Jean-Claude TRICHET

text: 26 See paragraph 3.3 of ECB Opinion

text: 27 As described in paragraph 1.1 of ECB Opinion

text: of 9 October 2007 at the request of the Polish Minister for Finance on a draft law amending the Law on the supervision of financial markets.

text: 28 See

text: Article 1(5)

text: (e) of the draft law, adding

text: Article 4(4)

text: in the Law on the Bank Guarantee Fund, as commented in point 10 of the specific remarks in the explanatory memorandum (p. 15 of the joint document containing the draft law and the explanatory memorandum).

text: 29 ECB Opinion

text: of 2 August 2006 at the request of Poland’s Sejm Marshall on a draft law amending the Law on Narodowy Bank Polski.

text: 30 See Article 1(14) of the draft law amending Article 17(5) of the Law on the Bank Guarantee Fund, as commented in point 12 of the specific remarks in the explanatory memorandum (p. 16 of the joint document containing the draft law and the explanatory memorandum).