EN
OPINION OF THE EUROPEAN CENTRAL BANK
of 30 August 2001
at the request of the Bank of Greece on a draf t law presented to the Greek Parliament by
the Minister of National Econ omy and Finance with respect to the circulation of euro
banknotes and coins and other related provisions
(CON/2001/21)
1. On 1 August 2001 the European Central Bank  (ECB) received a request from the Bank of
Greece for an opinion on a draft law with respect to  the circulation of euro banknotes and coins
and other related provisions (hereinaft er referred to as the Draft Act).
2. The ECBs competence to deliver an opinion is based on Article 105(4) of the Treaty
establishing the European Community (hereinafter referred to as the Treaty) and the first and
second indents of Article 2(1) of Council Decision 98/ 415/EC of 29 June 1998 on the
consultation of the European Central Bank by national authorities regarding draft legislative
provisions1 since the Draft Act deals with currency  matters and means of payment. Article
11(2) of the Council framewor k Decision of 29 May 2000 on incr easing protection by criminal
penalties and other sanctions against counterfeitin g in connection with the introduction of the
euro (hereinafter referred to as the framework Decision)2 provides the ECB with the
possibility to contribute in relation to the pr ovisions transposing into national law the
obligations imposed on Member States under the framework Decision. In accordance with thefirst sentence of Article 17.5 of the Rules of  Procedure of the European Central Bank
3, this
opinion has been adopted by the Governing Council of the ECB. 
                                                     
1OJ L 189, 3.7.1998, p. 42.
2OJ L 140, 14.6.2000, p. 1.
3OJ L 125, 19.5.1999, p. 34.
23. In line with Article 15 of Council Regu lation (EC) No 974/98 of 3 May 1998 on the
introduction of the euro4, Article 1 of the Draft Act introduces a parallel circulation period,
which will be limited to the period running from 1 January 2002 to 28 February 2002. 
4. The Draft Act provides that the right to issu e coins is vested in the Greek State and that
approval by the ECB is necessary for issuance.  A reference to Article 106(2) of the Treaty is
made in connection with this issuance and also  in respect of commemorative coins. Features
and designs of the national side of the first series  of coins, the procedure to select the designs of
the national side for future series and the pr oduction of coins, as well as the withdrawal of
coins, are stipulated in the Draft Act. Th e Bank of Greece, according to the national cash
changeover scenario, shall have the obligation to exchange banknotes denominated in drachmae
for euro until 1 March 2012, while the Bank of Greece and the Internal Revenue Offices shallexchange coins denominated in drachmae for euro until 1 March 2004. 
5. Member States are free to design the national si des of euro coins provided that 12 stars are
displayed on such national side5. For the sake of legal clarity, the ECB appreciates that
appropriate wording regarding this condition appl ying to the national sides has been introduced
in Article 3(4) of the Draft Act.
6. The Draft Act prohibits frontloading and sub- frontloading beyond the conditions set out in
Article 7(2) of the Draft Act and pursuant to the provisions of Guideline ECB/2001/1 of
10 January 2001 adopting certain provisions on the 2002 cash changeover6. The ECB welcomes
that the eligible institutions fo r frontloading are stipulated in the Draft Act. The conditions for
sub-frontloading are broadly laid down, while th e general public may be provided with euro
coins in the form of starter kits from 17 December 2001. In addition to the credit institutions,
the Bank of Greece, and other institutions design ated by the Minister of Finance following a
proposal by the Bank of Greece may sub-frontload  the general public with  euro coins in the
form of starter kits, from the same date . By a similar decision, the Bank of Greece and
eligible credit institutions may be authorised to supply retailers with euro coins. The ECB
welcomes that the Bank of Greece may modify the terms and conditions for frontloading and
sub-frontloading in accordance with the relevant  guidelines and decisions of the European
Central Bank. In Article 7(3), the Draft Act makes provision for adequate collateral forfrontloading. 
                                                     
4OJ L 139, 11.5.1998, p 1.
5Directorate-General for Economic and Financial Affairs, European Commission, Euro coins, From design
to circulation, May 2000, p. 8.
6OJ L 55, 24.2.2001, p. 80.
37. Furthermore, the ECB welcomes the provision in Article 7(5) specifying the parameters for the
imposition of administrative sanctions by the Bank of Greece on credit institutions in the caseof violation of their obligations under frontload ing agreements. Following harmonisation in the
respective field with other participating NCBs, the administrative sanction has been set at the
level of 10 % of the amount of the violation or, if such amount cannot be determined, as a lump
sum between 10,000 and up to one million euro. 
8. From the publication of the Draft Act until 31 December 2001, Article 7(6) of the Draft Act
prohibits the production, issuance, distribution or supply of collect ors coins, medals or tokens
bearing the words euro or  lepta /cent or designs, similar to those appearing on the common
sides of the euro coins. 
9. The ECB welcomes the provision of Article 7(4) of the Draft Act that frontloading and sub-
frontloading agreements in respect of euro bank notes and coins shall not be subject to any tax
or levy or any other fiscal burde n, direct or indirect. This under lines the principle that the cash
changeover should have no impact on costs.
10. Article 3(2) of the framework Decision requi res each Member State to take the necessary
measures to ensure that participating in and ins tigating the conduct referred to in Article 3(1) of
the framework Decision, and attempting the conduct re ferred to in points (a) to (c) of Article 3,
paragraph 1 of the framework D ecision, are punishable. The ECB not es that apart from specific
provisions of the Draft Act, provisions of genera l Greek criminal law are also relevant in so far
as they provide that all forms of participa tion to the commission of the said offences are
punishable. In that regard, specific provisions of  the Penal Code are to be amended by means of
Article 8 of the Draft Act, which transposes into  Greek law the provisions of Articles 3 and 4 of
the framework Decision. Furthermore, legislati on regarding the protection of national currency
continues to apply according to Article 8(6) of the Draft Act. With regard to the offences of
instigating, participating in a nd attempting the conduct referred to in Article 3(1) points (a) to
(c) of the framework Decision, the present word ing of the Draft Act does not address these
issues. It is understood that these offences s hould be punishable under the general provisions of
Greek criminal law (Articles 42 to 49 of the Greek Penal Code). It is noted that the minimumpunishment of incarceration will be augmented for all offences covered by the framework
Decision.
11. The Draft Act provides for administrative sanc tions imposed on legal entities in the case that
individuals with a power of representation of that  legal person, or authority to take decisions on
behalf of it, or authority to exercise cont rol within it, pursue ac tivities described in the
provisions of Article 8 of the Draft Act im plementing Articles 3 and 4 of the framework
Decision.  
412. The ECB welcomes that the Draft Act provides that conduct referred to in Articles 3 and 4 of
the framework Decision is punishable if it relate s to banknotes and coins in national currency
units of Member States which are accepte d for exchange by competent agencies. 
13. The ECB further notes that the Draft Act does not include any provisions allowing Greece to
comply with its obligations under Articles 4 and 5 of Council Regulation (EC) No 1338/2001 of
28 June 2001 laying down the measures necessary for the protection of the euro againstcounterfeiting
7. It is understood that the Greek authorities are bound to take the necessary
measures to comply with the obligations unde r the above Regulation prior to its entry into
force.
14. The ECB welcomes that Article 7 of th e Draft Act protects the frontloading and
subfrontloading operations in Greece by penalising the use of euro banknotes as a means ofpayment before 1 January 2002. 
15. The ECB takes note of Article 8(7) of the Dr aft Act empowering the Government, by joint
decision of the competent Ministers, to adjust  financial amounts in drachmae, such as fines,
fees, pecuniary penalties, charges, levies etc ., after rounding into euro from 1 January 2002.
With regard to a number of legislative provisions, a smoothing  of rounded amounts is
considered necessary for greater legal certainty  and transparency. In this context, the ECB
should like to recall the joint statement by the members of the Eurogroup of 4 June 2001,whereby, overall, conversion into euro of all prices, charges and fees administered by
governments will be price neutral or smoothed in favour of the consumer.
16. The ECB confirms that it has no objection to the publication of this opini on at the discretion of
the consulting authority.
Done at Frankfurt am Main on 30 August 2001.
The President of the ECB
[signed]
Willem F. DUISENBERG
                                                     
7OJ L 181, 4.7.2001, p. 6.