EN 
 
 
OPINION OF THE EUROPEAN CENTRAL BANK 
of 26 July 2010  
on the containment of public expenditure, as regards the Banca d’Italia 
(CON/2010/58) 
 
Introduction and legal basis  
On 15 July 2010 the European Central Bank (ECB) re ceived a request from the Italian Ministry of 
Economic Affairs and Finance (hereinafter the ‘Min istry’) for an opinion on Decree-Law No 78 of 
31 May 2010 on urgent measures for financia l stabilisation and economic competitiveness1 (hereinafter 
the ‘Decree-Law’), in particular Article 3(3) thereof. 
The ECB’s competence to deliver an  opinion is based on Articles 127(4) and 282(5) of the Treaty on the 
Functioning of the European Union and the third indent  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 provisions2, as the Decree-Law relates to the Banca d’Italia. 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 Decree-Law 
The Italian Government adopted the Decree-Law on 31 May 2010 with the purpose of stabilising the 
public finances, including by means of reducing publ ic expenditure. The specific provision on which the 
ECB was consulted regards the role of the Banca d’Italia as a national central bank (NCB). Article 3(3) of 
the Decree-Law provides that the Banca d’Italia ‘shall take account, in relation to its own legal order, of 
the principles of the containment of expenditure’ laid down in Title I3 of the Decree-Law for the three 
years 2011-2013.  
 2. General observations  2.1 Compliance with the central bank independence principle  
2.1.1 The ECB understands that Article 3(3) of the Decree-Law directly and specifically concerns the 
Banca d’Italia, thus it prevails over any other pr ovision of Title I of the Decree-Law which might 
otherwise have been applicable to the Banca d’Italia. 
                                                 
1  Gazzetta Ufficiale della  Repubblica Italiana  No 125, 31.5.2010; Supplemento Ordinario  No 114. 
2  OJ L 189, 3.7.1998, p. 42.  
3  Title I of the Decree-Law consists of several provisi ons the aim of which is to reduce public expenditure.   
 
2 2.1.2 As recalled in the ECB Convergence Reports4 and several opinions5 on issues concerning 
autonomy in staff matters, which are an aspect of  NCBs’ financial independence, Member States 
may not impair an NCB’s ability to employ and re tain the qualified staff necessary for the NCB to 
perform independently the tasks conferred on it by the Treaty and the Statute of the European 
System of Central Banks and of the European Centra l Bank (hereinafter the ‘Statute of the ESCB’).  
2.1.3 The ECB understands that Article 3(3) of the Decree-Law does not require the Banca d’Italia to 
take specific measures but invites it to consider, taking into account its own legal order, whether 
the purposes enshrined in the Decree-Law can be ach ieved without prejudicing the Banca d’Italia’s 
performance of its tasks under the Treaty, the Statute of the ESCB and national legislation. The Decree-Law can therefore be considered comp atible with the principle of central bank 
independence. However, the ECB trusts that it w ill be consulted on any future or revised draft 
legislative provisions in this matter. 
 2.2 Compliance with the consultation obligation  
2.2.1 In view of the late stage in the legislativ e process at which the ECB was consulted on an urgent 
basis, the ECB would like to draw attention to  Article 4 of Decision 98/415/EC, which requires 
Member States to ensure that the ECB is consulte d at an appropriate point in time to allow the 
consulting authority to take its opinion into cons ideration before deciding on the substance of the 
draft legislative provisions
6. In the present matter, the ECB was consulted more than one month 
after approval of the Decree-Law by the Italian G overnment, and fourteen days before the deadline 
for final conversion of the Decree-Law into a law by the Parliament. 
2.2.2 As has been stated in other ECB opinions7, in cases of particular urgency which do not allow for a 
normal consultation period, the consulting authorit y may indicate such urgency in the consultation 
request and ask for a shorter deadline for adop tion of the ECB’s opinion. However, the ECB 
considers that the justification provided by the Mi nistry cannot be considered as a case of extreme 
urgency within the meaning of Article 3(2) of Decision 98/415/EC. The ECB understands that, 
pursuant to Article 77 of the Italian Constitution, the Italian Government may, in the event of 
                                                 
4  See, for example, the ECB Converg ence Report 2010, p. 23; available on the ECB’s website at www.ecb.europa.eu. 
5  See ECB Opinions CON/2008/9, CON/2008/10, CON/2009/15, CON/200 9/45, CON/2009/47, CON/2010/42, 
CON/2010/51 and CON/2010/56. All ECB opinions  are available on the ECB’s website. 
6  On this point see also ECB Opini ons CON/2008/10, CON/2010/51 and CON/2010/56. 
7  See on this point Opinion CON/2010/56, paragraphs 2.2 and 2. 3. In particular, the ECB would like to emphasise that 
even in cases of particular urgency a minimum one-month deadline applies according to Article 3(1) of Decision 
98/415/EC. This does not prejudice the consulting authority’s duty under Articles 127(4) and 282(5) of the Treaty to 
consult the ECB on national draft legislative provisions falling wi thin its fields of competence at an appropriate stage in 
the national legislative process, as provi ded by the second sentence of Article 4 of Decision 98/415/EC. This means that 
the consultation should take place at a point in the legisla tive process which affords the ECB sufficient time to examine 
the draft legislative provisions and to adopt its opinion in all required language versions, and which also enables the 
relevant national authorities to take th e ECB’s opinion into consideration before the provisions are adopted. Article 3(4) 
of Decision 98/415/EC also obliges Member States to susp end the adoption process for draft legislative provisions, 
pending receipt of the ECB’s opinion. In the event of extrem e urgency, the time limit of one month may be reduced but, 
pursuant to Article 3(2) of Decision 98/415/EC, the consulting authority must state the reas ons for the urgency. The ECB 
reiterates its position that even cases of  particular urgency do not relieve national authorities from their duty to consult 
the ECB and to allow themselves  sufficient time to take into account the EC B’s views, in accordance with Decision 
98/415/EC. On this point see also E CB Opinion CON/2010/51, paragraph 2.  
 
3 urgency, adopt a Decree-Law. The Decree-Law has to  be converted into a law by the Parliament 
within sixty days from its publication. The D ecree-Law enters into force immediately after 
publication and has the same legal effect as a la w. Thus, when a Decree-Law falls within the 
competence of the ECB, as in this  case, the ECB should be consulted in due time prior to the entry 
into force of the relevant provisions. More gene rally, internal administrative procedures should be 
in place to ensure that timely consultation of the ECB is foreseen whenever such consultation is 
mandatory8, and the ECB should be consulted at an appropriate point in time in the event of 
relevant amendments in the cour se of the legislative procedure9. 
 This opinion will be published on the ECB’s website.    Done at Frankfurt am Main, 26 July 2010. 
 
[signed] 
 
The President of the ECB 
Jean-Claude TRICHET 
 
                                                 
8  See on this point ECB Opinions CON/2008/10, paragraph 2, last sentence and CON/2010/51, paragraph 2, last sentence. 
9  Any substantive amendments to the draft law must be s ubmitted to the ECB to allow it to adopt its opinion on the most 
recent text. On this point see ECB Opinion CON/2010/56, pa ragraph 2.3, last sentence , and ECB Opinion CON/2009/59, 
paragraph 2.1.