EN 
 
 
OPINION OF THE EUROPEAN CENTRAL BANK 
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 
(CON/2007/43) 
 
Introduction and legal basis  
On 20 July 2007 the European Central Bank (ECB) received a request from the Slovak Ministry of 
Finance for an opinion on a draft law on the introducti on of the euro in Slovakia and on amendments to 
certain laws. On 24 September 2007 the Slovak Ministry of Finance sent the ECB a revised version of this law (hereinafter the ‘draft law’) w ith an urgent request for an opinion. 
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 , fifth and sixth indents of Article 2(1) of Council 
Decision 98/415/EC of 29 June 1998 on the consulta tion of the European Central Bank by national 
authorities regarding draft legislative provisions
1, as the draft law relates to currency matters, means of 
payment, Národná banka Slovenska (NBS), the coll ection, compilation and distribution of monetary, 
financial, banking, payment systems and balance of payment statistics, payment and settlement systems 
and the rules applicable to financial institutions in sofar 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, th e Governing Council has adopted this opinion. 
 1.  Purpose of the draft law 
The main objective of the draft law is to amend almo st all relevant parts of the Slovak legal framework
2 
for the introduction of the euro in Slovakia and to en sure the compatibility of Slovak legislation with the 
Treaty and the Statute of the European System of  Central Banks and of the European Central Bank 
(hereinafter the ‘ESCB Statute’). The draft law contains three main parts: (i) the draft law on the introduction of the euro (hereinafter the ‘draft euro  law’); (ii) the draft law amending Law No 566/1992 
Coll. on Národná banka Slovenska, as amended (hereina fter the ‘draft amendments to the NBS Law’); 
                                                 
1  OJ L 189, 3.7.1998, p. 42.  
2  In line with the National Euro Changeover Plan for Slova kia adopted by the Resolution of the Slovak Government 
No 525 of 6 July 2005, as amended, there are three groups of legislative measures to be brought into line with 
Community law and this draft law contains the legislative m easures from the first group and several legislative measures 
from the second group. 
2 and (iii) amendments to 26 other laws3 to prepare for the introduc tion of the euro in Slovakia4. 
 2. General observations 2.1 The ECB welcomes the Slovak Government’s initiative to start early preparations for the 
introduction of the euro, which should facilitate  Slovakia’s smooth changeover to the euro. 
Direct applicability of Community regulations and provisions of primary Community law 
2.2 Certain provisions of the draft law repeat rele vant provisions of Community regulations. In this 
context, the ECB notes that Article 249 of the Tr eaty provides that a Community regulation ‘shall 
be binding in its entirety and directly applicable  in all Member States’. Therefore, a Community 
regulation, as stated by the Court of Justice of  the European Communities, does not need to be 
transposed into the domestic law of a Member State
5. The same applies to all directly applicable 
provisions of primary Community law. In this li ght, the ECB recommends deleting those articles of 
the draft law that repeat provisions and defin itions of Community regulations and directly 
                                                 
3 Law No 39/1993 Coll. on the Supreme Audit Office of Slov akia, as amended, Law No 513/1991 Coll., as amended (the 
Commercial Code), Law No 747/2004 Coll. on financial market supervision (includi ng amendments to cer tain laws), as 
amended, Law No 566/2001 Coll. on securiti es and investment services (includi ng amendments to certain laws), as 
amended, Law No 530/1990 Coll. on bonds, as  amended, Law No 191/1950 Coll. on bills  of exchange and cheques, Law 
No 594/2003 Coll. on collective investment (including amendments to certain laws ), as amended, Law No 483/2001 Coll. 
on banks (including amendments to certa in laws), as amended, Law No 310/ 1992 Coll. on home savings, as amended, 
Law No 118/1996 Coll. on deposit protection (including amendm ents to certain laws), as amended, Law No 510/2002 
Coll. on the payment system (including amendments to certain laws), as amended, Law No 202/1995 Coll. (foreign 
exchange), as amended, Law No 43/2004 Co ll. on retirement pension saving (includi ng amendments to cer tain laws), as 
amended, Law No 650/2004 Coll. on supplemen tary pension saving (including amendmen ts to certain laws ), as amended, 
Law No 461/2003 Coll. on social insuranc e, as amended, Law No 462/2003 Coll. on compensation of earnings during an 
employee’s temporary incapacit y (including amendments to certain laws ), as amended, Law No 171/2005 Coll. on 
gambling games (including amendments to certain laws), as amended, La w No 530/2003 Coll. on the Commercial 
Register (including amendmen ts to certain laws), as amended, Law No 18/1996 Coll. on prices, as amended, Law 
No 258/2001 Coll. on consumer loans and on the amendment to Law No  71/1986  Coll. on the Slovak Trade Inspectorate, 
as amended, Law No 63/1993 Coll. on stat e symbols of Slovakia and on their us e, as amended, Law No 231/1999 Coll. 
on state aid as amended, La w No 82/1994 Coll. on state material reserves , as amended, Law No 80/1997 Coll. on the 
Export-Import Bank of Slovakia, as ame nded, Law No 507/2001 Coll. on postal se rvices, as amended, Law No 291/2002 
Coll. on the State Treasury (including amendments to certain laws), as amended. 
4  For ease of reference, with regard to Sections I and II of the draft law, the Article numbers in the text refer to the 
numbering in the underlying legal act (e.g. th e draft amendments to the NBS Law). W ith regard to Sections III to XXX of 
the draft law, the Article numbers refe r to the underlying law covered by each  section and there are also footnote 
references to the corresponding Section and Point in the draft law. 
5  As stated by the Court of Justice of the European Communities in Case 34/73 Fratelli Variola S.p.A v Amministrazione 
italiana delle Finanze  [1973] ECR 981: ‘by virtue of the obligations ar ising from the Treaty and assumed on ratification, 
Member States are under a duty not to obstruct the direct applicability inherent in re gulations and other rules of 
Community law. Strict compliance with this obligation is  an indispensable condition of simultaneous and uniform 
application of Community regulations throughout the Community’. This position was reiterated in Case 50/76 
Amsterdam Bulb v Produktschap voor Siergewassen [1977] ECR 137. See also ECB Opinion CON/2006/10 of 
23 February 2006 at the request of the Central Bank of Malt a on a draft law on the adoption of the euro; ECB Opinion 
CON/2006/29 of 12 June 2006 at the request of the Slovenian Mi nistry of Finance on a draft law on the introduction of 
the euro; and ECB Opinion CON/2007/1 of 15 January 2007 at the request of the Cypriot Ministry of Finance on a draft 
law regulating the adoption of the euro and the currency changeover. 
3 applicable provisions of primary Community law6, including definitions. The draft law should 
therefore include only those issues relating to the introduction of the euro in Slovakia7 that are not 
regulated by Community legislation. This would also contribute to simplifying the draft law. 
 
3. Specific observations concerning the dra ft euro law (Section I of the draft law) 
Changeover rules Article 3(8)(b)(1) of the draft euro law provides that  banks will be required to exchange Slovak currency 
banknotes into euro for a period of one year from the day the euro is introduced. This one year period applicable to banks goes beyond, but is not incons istent with what is foreseen in Community law
8. 
 4. Specific observations concerning the draft amendments to the NBS Law (Section II of the 
draft law)  
NBS’s integration into the Eurosystem  
4.1 The draft law addresses a number  of issues that the ECB rais ed in its Convergence Report of 
December 2006
9. The ECB welcomes the Slovak Government’s efforts to achieve the required 
level of legal convergence and notes that the le gal convergence of the amended NBS Law will be 
also assessed in the ECB’ s next Convergence Report. 
4.2 Concerning the system of sanctions provided fo r by Community law, the compatibility of the 
amendments introduced by the draft law to the NB S Law with such system is important for the 
legal integration of NBS into the Eurosystem. Un der Article 21 of the draft amendments to the 
NBS Law, NBS may impose and enforce sanctions relating to minimum reserves or to other monetary policy operations, in accordance w ith the rules applicab le to the Eurosystem
10. The ECB 
assumes that the term ‘other monetary policy opera tions’ in Article 21 of the draft amendments to 
the NBS Law includes ‘credit operations’ within the meaning of the ESCB Statute. 
                                                 
6  If, in spite of what has been explained, the Slovak au thorities still intend to reproduce such primary and secondary 
Community law provisions, they should re produce them precisel y without modifying their wo rding. See Article 1(2)(a) 
of the draft euro law which does not reproduce precisely the provi sions of the relevant monetary  agreements referred to in 
footnote 3 of the draft euro law. Furthermore, Article 24b of the draft law amending Law No 39/1993 Coll. on the Slovak 
Supreme Audit Office (Section III),  as amended, and Article 38(2) of the draft amendments to the NBS Law do not 
reproduce precisely the provisions of  Article 27 of the ESCB Statute. 
7 See, e.g. supervision of compliance with rules and obligat ions concerning the changeover from the Slovak currency to the 
euro governed by Articles 19 to 22 of the draft euro law or w ithdrawal of euro coins governed by Article 17c of the draft 
amendments to the NBS Law. 
8 See Articles 15 and 16 of Council Regulation (EC) No 974/ 98 of 3 May 1998 on the introduction of the euro (OJ L 139, 
11.5.1998, p. 1). Regulation as last amended by  Regulation (EC) No 835/2007 (OJ L 186, 18.7.2007, p. 1) 
9  See the ECB’s Convergence Report of December 2006, pp. 21-33 and 230-231. 
10 See, e.g. Council  Regulation (EC) No  2531/98 of 23  November 1998 concerning the application of minimum reserves by 
the European Central Bank (OJ L 318, 27.11.1998, p.1). Re gulation as last amended by Council Regulation (EC) 
No 134/2002 (OJ L 24, 26.1.2002, p. 1), Council Regulation (EC) No  2532/98 of 23  November 1998 concerning the 
powers of the European Central Bank to impose sanctions (OJ L 318, 27.11.1998, p. 4); and Regulation ECB/2003/9 of 
12 September 2003 on the application of minimum reserves (OJ L 250, 2.10.2003, p. 10).  
4 4.3 Article 5 of Decision ECB/2003/4 of 20 March 2003 on the denominations, specifications, 
reproduction, exchange and withdrawal of euro banknotes11 provides that the Governing Council is 
to decide on the ‘treatment of euro banknotes pr esented once the withdrawal period is over and/or 
they have lost their legal tender status’. In order to reflect this provision in the draft law, the ECB 
recommends adding the wording ‘subject to the rules applicable in the euro area’ at the end of 
Article 17a(4) of the draft amendments to the NBS Law and including a reference to Decision 
ECB/2003/4 in a footnote. 
4.4 The ECB understands that Article 17f(2) of the draft amendments to the NBS Law encompasses 
provisions of the Banknote Recycling Framework12, even though footnote 3h) (listing examples of 
rules applicable in the euro area)  makes no explicit reference to th is Framework. In addition, the 
same approach used in Article 17f(2) should be u sed in Article 17f(5) of the draft amendments to 
the NBS Law; in particular, the wording ‘provided in a separate legal provision’ at the end of the 
first sentence of Article 17f(5) should be replaced by ‘provided in the rules applicable in the euro 
area to the processing of euro banknotes and euro coins’, together with a corresponding reference 
in footnote 3h). 
4.5 Article 17a(1) of the draft amendments to the NBS Law introduces a general provision on legal 
tender, which is to remain in force after the introduction of euro banknotes and coins in Slovakia 
following the abrogation of the derogation by the EU Council. Article 17a(3) of the draft 
amendments to the NBS Law introduces a specific pr ovision on the status as legal tender of euro 
banknotes and coins, and in this connection the ECB makes the following technical recommendations.  
The ECB understands that Article 17a(3) of the dr aft amendments to the NBS Law is intended to 
designate the entities which will be obliged, unde r the third sentence of Article 11 of Council 
Regulation (EC) No 974/98 of 3 May 1998 on the introduction of the euro
13, to accept cash 
payments in euro coins irrespective of the numbe r of coins involved. The purpose of the third 
sentence of Article 11 of Regulation (EC) No 974/98 is to provide for the obligation of the issuing authority to accept unlimited amounts of euro coin s and to allow national law to extend this 
obligation to other entities. The ECB questions th e extensive scope of the entities designated under 
national law to accept euro coins without restrictions
14.  
Parties who are not designated in Article 17a(3) of the draft amendments to the NBS Law, are 
entitled to reject payments involving more than 50 eu ro coins by virtue of the direct application of 
Article 11 of Regulation (EC) No 974/98. Article 17a(3) of the draft amendments to the NBS Law 
                                                 
11  OJ L 78, 25.3.2003, p. 16. 
12  See the ECB document ‘Recycling of euro banknotes: framework  for the detection of counterfeits and fitness sorting by 
credit institutions and other professional cash handlers’ (SEC /GovC/04/23/09a.rev-2) that has been agreed by the ECB’s 
Governing Council on 16 December 2004 and is av ailable on the ECB’s website at www.ecb.int. 
13   OJ L 139, 11.5.1998, p. 1 
14   The ECB notes that the scope of application of the first sent ence of Article 17a(3) in relation to coins is in fact limited by 
virtue of the direct application of Article 11 of the Regul ation (EC) No 974/98. The reference to this Article in 
footnote 3d) of the draft amendments to the NBS Law reflects this intended limitation. 
5 also entitles all legal and natural persons other th an NBS and banks, to reject payments involving 
Slovak euro collector coins15. In this respect the ECB notes th at, in accordance with the Council 
Conclusions of 23 November 1998 on euro collector coins, these coins will only be legal tender in 
the country of issue, if necessary through the ope ration of national law. The Council Conclusions 
should be fully taken into account16 when providing for any limitation to the status as legal tender 
of collector coins such as that provided for in Article 17a(3) of the draft amendments to the NBS 
Law. 
Finally, Article 17a(3) of the draft amendments to the NBS Law is justified to the extent that its 
scope is limited to euro coins in accordance with  Article 11 of Regulation (EC) No 974/98, or to 
the need to deal with the status as legal tender of  euro collector coins. Ho wever, the references in 
Article 17a(3) of the draft amendments to the NBS Law to the status as legal tender of euro 
banknotes are unnecessary in view of the direct applicability of Article 10 of Regulation (EC) No 974/98
17.  
 5.  Specific observations concerning the draft amendments (Sections III to XXVIII of the draft 
law) 
Denomination of amounts in legal instruments 5.1 The currency of a Member State with a derogation is its national currency until the entry into force 
of the Council decision abrogating the derogation under Article 122(2) of the Treaty. In accordance with this principle , the entry into force of national law provisions introducing amounts in euro that 
replace the national currency should not take place pr ior to the entry into force of the eventual 
Council decision abrogating the Member State’s derogation
18. Such entry into force of national law 
provisions containing amounts in euro, other than wh en the euro is used in the context of the euro 
as a foreign currency19, is possible only where it is necessary due to the transposition of 
Community law provisions20 expressed in euro21. In such latter case, national law could refer to ‘an 
                                                 
15    Article 17a(3) of the draft amendments to the NBS Law does not distinguish between Slovak euro collector coins and 
euro collector coins issued by other Member States. Howeve r, since euro collector coins are only legal tender in the 
issuing Member State, in accordance with the Council Conc lusions of 23 November 1998 on euro collector coins, the 
ECB understands that this Article only re fers to Slovak euro collector coins. 
16  The second sentence of Article 17a(3) of the draft amendments to the NBS Law would have to provide a clear reference 
to Article 11 of the Regulation (EC) No 974/98. 
17   See paragraph 2.2. of this opinion. If the Slovak authorities still intend to refer to euro banknotes in Article 17a(3) of th e 
draft amendments to the NBS Law, a cl ear reference should be made to Article  10 of Regulation (EC) No 974/98 in the 
first sentence of Article 17a(3) of the draft amendments to the NBS Law. 
18  Article 123(5) of the Treaty provides that if the Council deci des to abrogate the derogation, it ‘shall … adopt the rate at 
which the euro shall be substituted for the currency of the Me mber State concerned’. See also paragraphs 3.2 and 3.3 of 
ECB Opinion CON/2006/28 of 9 June 2006 at the request of Es tonian Ministry of Justice on a draft law amending the 
Commercial Code and some other legisla tion to facilitate euro introduction.  
19  This use of the euro in the context of the euro as a fore ign currency in national law provisions occurs, for instance, when 
the provisions refer to expenses incurred in a euro area Member State or to loans denominated in euro.    
20  See, e.g. Article 4 of Directive 97/9/EC of the European  Parliament and of the Council  of 3 March 1997 on investor-
compensation schemes (OJ L 84, 26.3.1997, p. 22) and Article 9(2)(b) of the Law No 118/96 Coll. (Section XII, Point 5 
of the draft law) transposing this Directive. 
6 amount in the national currency equivalent  to “X” euro’  (including a formula to be used for the 
calculation of such amounts) until the eventual Council decision that will abrogate the Member 
State’s derogation enters into force. The draft law amends Law No 18/1996 Coll.22 as follows: 
(i) thresholds expressed in the Slovak currency w ill be replaced by thresholds expressed euro in 
Article 18(1)(b) and 18(2); and (ii) a new Article 23c specifies that the euro foreign exchange 
reference rate set and published by NBS will be u sed to calculate in the Slovak currency the actual 
amounts resulting from the said thresholds expressed in  euro in Articles 18(1)(b) and 18(2) for the 
period between 1 January 2008 (the date the draft la w enters into force) and the date the euro is 
introduced in Slovakia. 
Law No 510/2002 Coll. on the payment system (Section XIII) 5.2 The existing Trans-European Automated Real-t ime Gross settlement Express Transfer system 
(TARGET) will be replaced by TARGET2 starti ng from 19 November 2007. Each NCB that is a 
member of the Eurosystem is obliged to migrat e to TARGET2 and to bring its respective national 
legislative provisions into line with the TARGET2 Guideline
23. Even though this obligation does 
not yet apply to NBS, Law No 510/2002 Coll. will need to be amended before NBS becomes a member of the Eurosystem. 
 This opinion will be published on the ECB’s website.   Done at Frankfurt am Main, 19 December 2007. 
 
[signed] 
 
The President of the ECB 
Jean-Claude TRICHET 
                                                                                                                                                             
21  The national law would have to provide that upon the introduc tion of the euro such provisions should be read as referring 
to the given amount in euro and not to its equivalent. The E CB notes that a legal technique along these lines is already 
applied in this draft law (see, e.g. the Law No 258/2001 Coll. in Section XXII of the draft law).  
22  See Section XXI, Point 1 and Point 2 in conjunction with Point 4 of the draft law. 
23 See 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).