EN 
 
 
OPINION OF THE EUROPEAN CENTRAL BANK 
of 8 December 2008 
at the request of Národná banka Slovenska 
on a draft decree regarding cash currency circulation 
(CON/2008/86) 
 
Introduction and legal basis  
On 10 November 2008 the European Central Bank (ECB) received a request from Národná banka 
Slovenska (NBS) for an opinion on a draft decree on certain details regarding cash currency circulation 
and on amendments to certain decrees (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 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, 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. 
 1.  Purpose of the draft decree  
The draft decree is a technical implementing measure to be adopted pursuant to Articles 17b(5), 17e(5) 
and 17f(10) of the Law of the National Council of  the Slovak Republic No 566/1992 Coll. on Národná 
banka Slovenska. It aims to regulate the processi ng of euro banknotes and coins, the withdrawal of 
counterfeit, mutilated or damaged eu ro banknotes, and in particular to  implement the Framework for the 
detection of counterfeits and fitness sorting by cr edit institutions and other professional cash handlers
2 
(hereinafter the ‘Framework’), thereby also contributing to a smooth euro changeover in Slovakia from 1 January 2009. In detail, the draft decree: (i) define s the most frequently used terms in connection with 
euro banknotes and coins; (ii) regulates the handling, sorting and packaging of euro banknotes and coins 
by banks or professional cash handlers; and (iii) prov ides for the procedures for withdrawal of altered or 
counterfeit euro banknotes and coins and euro banknotes or coins that are suspect ed of being counterfeit, 
altered, damaged, mutilated or illegally produced.  
 
                                                 
1  OJ L 189, 3.7.1998, p. 42. 
2  See the ECB document entitled ‘Recycling of euro banknotes: framework for the detection of counterfeits and fitness 
sorting by credit institutions and other professional cash handlers’  as agreed by the ECB’s Governing Council on 
16 December 2004, which is available on the ECB’s we bsite at www.ecb.europa.eu. 
2 2. General observations  
2.1  The ECB welcomes the fact that NBS is implementing the Framework by means of the draft 
decree, as this will contribute to a high level of harmonisation within the Eurosystem in the field of 
euro banknotes and coins and assist Slovakia’s legal convergence in that field. Under the 
transitional regime for the implementation of th e Framework in the new participating Member 
States (hereinafter the ‘Transitional regime’) approved by the ECB’s Governing Council in 
December 2004, NBS as a national central bank (N CB) of a new participating Member State from 
1 January 2009, should adopt the Fr amework ‘… as soon as possible, at  the latest within 12 months 
of the date on which euro banknotes and coins acquire  the status of legal tender in the relevant new 
participating Member State.’ Since the intended date of entry into force of the draft decree is 1 January 2009, Slovakia will comply with the requirements of the Transitional regime. 
2.2 Under Article 106 of the Treaty, the ECB has the exclusive right to authorise the issue of banknotes 
within the Community. Coins are issued by the Me mber States subject to approval by the ECB of 
the volume of the issue. Consequently, as a ge neral principle, the Eurosystem’s regulatory 
competence only concerns banknotes. Moreover, as fa r as the accession of NCBs to the Eurosystem 
is concerned, the ECB supports a clear and consis tent separation between national rules relating to 
banknotes and rules relating to coins
3. The ECB is therefore of the view that the draft decree would 
benefit from introducing a consistent internal  separation between the rules concerning euro 
banknotes and the rules concerning euro coins4. 
2.3 Since the draft decree also re gulates issues that fall outside the scope of Community law, in 
particular the legislative framework of the Europ ean System of Central Banks and the ECB, this 
opinion focuses on those provisions of the draft decree: (i) that do fall within the scope of 
Community law; (ii) that fall under the ECB’s competen ce; and (iii) that are of a legal rather than a 
purely technical nature. Moreover, the ECB would li ke to underline that pursuant to Article 10 of 
the Treaty it is the Slovak authorities’ responsibility to take all appropriate measures to ensure the 
fulfilment of their obligations arising out of the Treaty or resulting from action taken by the institutions of the Community, including those ta ken within the framework of the Eurosystem. 
 
                                                 
3  See paragraph 2.3 of ECB Opinion CON/2007/28 of 25 Sept ember 2007 at the request of the President of Narodowy 
Bank Polski on a draft ordinance on the method and procedur e for counting, sorting, pack aging and labelling packaging 
units of banknotes and coins, and in conducting activities related to the supply of ba nknotes and coins to banks; 
paragraph 2.2 of ECB Opinion CON/2008/36 of 5 August 2008 at  the request of Latvijas Banka on a draft regulation on 
lats banknotes and coins; and paragraph 2 of ECB Opini on CON/2008/47 of 9 October 2008 at the request of Sveriges 
Riksbank on a draft Regulation on the redemption of banknotes and coins. 
4  Currently the draft decree does not separate the rules on euro banknotes and coins at all. 
3 3. Specific observations 
3.1 In addition to implementing the Framework, Sl ovakia will also have to comply with Community 
and ECB legal acts in the field of euro banknotes5. Although it has no further specific comments of 
a legal nature on the draft decree, the ECB reemph asises that the responsibility for ensuring that the 
draft decree complies fully with the Eurosystem le gal framework in this re gard remains with the 
consulting authority. 
3.2 Pursuant to Council Decision 2008/608/EC of 8 Ju ly 2008 in accordance with Article 122(2) of the 
Treaty on the adoption by Slovakia of the single currency on 1 January 20096, Slovakia fulfils the 
necessary conditions for adoption of the euro a nd its derogation under Artic le 4 of the Act of 
Accession7 will be abrogated with effect from 1 January 2009. Since the date of entry into force of 
the draft decree either coincides w ith the date of the euro introduction in Slovakia or is postponed 
until 1 January 2010 pursuant to Section V thereo f, it would be advisable  for reasons of legal 
clarity to delete any references in the draft decree8 to those Community law provisions which will 
become obsolete once the euro is introduced in Slovakia9. 
 This opinion will be published on the ECB’s website.   Done at Frankfurt am Main, 8 December 2008. 
 
[signed] 
 
The President of the ECB 
Jean-Claude TRICHET 
                                                 
5  Council Regulation (EC) No 1338/2001 of 28 June 2001 laying down measures necessary for the protection of the euro 
against counterfeiting (OJ L 181, 4.7.2001, p. 6); D ecision ECB/2003/4 of 20 March 2003 on the denominations, 
specifications, reproduction, exchange and withdrawal of euro banknotes (O J L 78, 25.3.2003, p. 16); Guideline 
ECB/2003/5 of 20 March 2003 on the enforcement of measur es to counter non-compliant reproductions of euro 
banknotes and on the exchange and withdrawal of euro banknotes (OJ L 78, 25.3.2003, p.  20); Council Regulation (EC) 
No 2182/2004 of 6 December 2004 concerning medals and tokens similar to euro coins (OJ L 373, 21.12.2004, p. 1); 
Commission Recommendation of 27 May 2005 concerning authentica tion of euro coins and handling of euro coins unfit 
for circulation (notified under document number C(2005) 1540) (OJ L 184, 15.7.2005, p. 60); and the ECB document 
entitled  ‘Data Collection from Credit Ins titutions and other Professional Cash Handlers under the Framework for 
Banknote Recycling’ , which is available on the ECB’ s website at www.ecb.europa.eu. 
6  Council Decision of 8 July 2008 in acco rdance with Article 122(2) of the Treaty on the adoption by Slovakia of the single 
currency on 1 January 2009 (OJ L 195, 24.7.2008, p. 24). 
7  Act concerning the conditions of accession of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the 
Republic of Latvia, the Republic of Lith uania, the Republic of Hungary, the Repub lic of Malta, the Republic of Poland, 
the Republic of Slovenia and the Slovak Republic and the adju stments to the Treaties on which the European Union is  
founded (OJ L 236, 23.9.2003, p. 33). 
8 See footnote 1 to the draft decree. 
9 From the date of introduction of the euro in Slovakia,  Council Regulation (EC) No 1339/2001 of 28 June 2001 extending 
the effects of Regulation (EC) No 1338/2001 laying down measur es necessary for the protection of the euro against 
counterfeiting to those Member States which have not adopted the euro as th eir single currency (OJ L 181, 4.7.2001, 
p. 11) will no longer apply.