EN
OPINION OF THE EUROPEAN CENTRAL BANK
of 18 June 2001
at the request of the Spanish Ministry of Economy on a draf t Order on the frontloading of
banknotes and coins denominated in euro
(CON/2001/14)
1. On 28 May 2001 the European Central Bank (E CB) received a request from the Spanish
Secretary of State for the Economy, Energy a nd Small and Medium-sized Enterprises for an
opinion on a draft Order on the frontloading of ba nknotes and coins denominated in euro (the
draft Order).
2. The competence of the ECB to deliver an opini on on the draft Order is based on Article 2 of
Council Decision 98/415/EC of 29 June 1998 on the consultation of the ECB by national
authorities regarding draft legislative provisions.1 In accordance with the first sentence of
Article 17.5 of the Rules of Procedure of the ECB, this opinion has been adopted by the
Governing Council of the ECB.
3. Article 20(2) of Guideline E CB/2001/1 of 10 January 2001 adoptin g certain provisions on the
2002 cash changeover2 recommended that the provisions of the Guideline applied also to the
frontloading of coins, which is the competen ce of each of the governments of the Member
States participating in the euro. Hence, the dr aft Order lays down certain aspects of a common
regime for the frontloading of euro banknotes a nd coins. In particular, the draft Order (1) lays
down the starting date for the frontloading of eu ro banknotes and coins, (2) establishes the
parties to whom credit institutions may de liver euro banknotes and coins prior to
1 January 2002, and (3) enables the Banco de España to adopt implementing measuresregarding the frontload ing of euro coins.
4. Paragraph 3 of the Sole Article of the draft Order lays down that the delivery of euro coins by
the Treasury, through the Banco de España, and the delivery of euro banknotes to creditinstitutions by the Banco de España shall take place as from 1 September 2001. The ECBwelcomes this provision which is in lin e with Article 3 of Guideline ECB/2001/1.
                                                     
1OJ L 189, 3.7.1998, p. 42.
2OJ L 55, 24.2.2001, p. 80.
25. According to paragraphs 3 and 4 of the Sole Ar ticle of the draft Order, frontloading of euro
banknotes and coins would be carried out in acco rdance with the distribution contracts to which
the Banco de España and credit institutions are party. These contracts may provide for sub-frontloading as from 1 September 2001 for general commercial distribution and large moneytraders. Furthermore, credit institutions may deliver limited quantities of euro banknotes and
coins to retailers as from 1 December 2001 in acco rdance with the terms laid down in relevant
contracts for frontloading. The ECB welcomes  the broad definition of general commercial
distribution (meaning retail activities with a larg e sales volume and a quantity of commercial
outlets allowing for a large influx of customers,  and a network covering most of the national
territory) and of retailers (as including any ac tivity carried out professionally for profit that
consist of offering for sale any article or the provision of any service to the final destination,
whether or not they use an establishment). The provisions of the draft Order would thus
guarantee a pre-distribution of euro banknotes and coins to economic agents across the national
territory that would ensure a smooth process for the cash changeover to the euro. Provided that
the distribution contracts conc luded between the Banco de España and credit institutions
comply with the requirements of Guideline ECB/2001/1, sub-frontloading of euro banknotes
would not have the effect of anticipated circ ulation of euro banknotes among the general
public.
6. The ECB would like to note that paragraph 2 of th e First Final Provision of the draft Order may
give rise to confusion as regards the sub-frontlo ading of euro banknotes and coins to retailers.
According to paragraph 2 of the First Final Prov ision, the General Director of the Treasury and
Financial Policy shall be empowered to authoris e the sub-frontloading of euro banknotes and
coins, as referred to in Article 4 of the draf t Order, to third parties other than general
commercial distribution or other money handlers,  when appropriate. This provision would seem
to suggest that sub-frontloading of limited quantities of euro banknotes and coins to retailers by
credit institutions would require specific author isation from the Treasury. This would conflict
with the objective of a smooth and efficient pre- distribution stage for the cash changeover. The
ECB thus recommends further clarificati on on the application of this provision.
7. The First Final Provision of the draft Order empowers the Banco de España to develop and
implement the draft Order, and to approve the model frontloading contracts with credit
institutions for euro coins. The ECB welcom es this provision, as it will facilitate the
consistency and co-ordination of the frontloadin g and sub-frontloading of euro banknotes and
coins, and the fulfilment of the recommendati on of Guideline ECB/2001/1 that national central
banks apply the provisions of the Guideline to euro coins.
8. The ECB confirms that it has no objection to the publication of this Opin ion at the discretion of
the consulting authority.
3Done at Frankfurt am Main on 18 June 2001.
The President of the ECB
[signed]
Willem F. DUISENBERG