EN ECB -PUBLIC  
 
OPINION OF THE EUROPEAN CENTRAL BANK  
of 23 November 2015  
on the production of euro banknotes  
(CON/2015/51)  
 
Introduction and legal basis  
On 7 October 2015,  the European Central Bank (ECB) received a request from the Portuguese Ministry 
of Finance for an opinion on a draft decree- law (hereinafter the ‘draft decree- law’) amending the 
Portuguese legal framework for the production of euro banknotes . 
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 first  and third indent s of Article  2(1) of Council 
Decision  98/415/EC1, as the draft decree- law relates to currency matters  and national central banks . In 
accordance with the first sentence of Article 17.5 of the Rules of Pr ocedure of the European Central 
Bank, the Governing Council has adopted this opinion.  
 
1. Purpose of the draft decree- law 
The draft decree- law amends the existing legal framework for the production of euro banknotes  
detailed in Decree- Law 400/99, of 14 October 199 92. The main purpose of the draft decree- law is 
to allow the Banco de Portugal (BdP), as a Eurosystem central bank with an in- house printing 
works, to participate in forms of mutual cooperation, either  for the production of raw materials or for 
printi ng euro banknotes , between Eurosystem national central banks (NCBs) that produce euro 
banknotes using in- house printing works ( hereinafter the ‘in-house group NCBs’) . In order to 
facilitate the participation of BdP in such forms of cooperation,  the draft decree- law eliminates the 
requirement for the BdP to hold a qualifying majority  (51% or more) of the share capital of the legal 
entities that produc e and print  euro banknotes.  
 
2. General observationsThe ECB welcomes the draft decree- law as it adapts the legal framework 
for the production of euro banknotes to Guideline (EU) 2015/280 of the European Central Bank  
(ECB/2014/44)3, in particular  as regards  the possibility for the in-house group NCBs to enter into 
forms of cooperation to improve the cost -efficiency of euro banknote production.  
                                                 
1  Council Decision 98/415/EC of 29 June 1998 on the consultation of the European Central Bank by national 
authorities regarding draft legislative provisions ( OJ L 189, 3.7.1998, p. 42) . 
2  Diário da República,  No 240 Series 1-A, of 14  October  1999 . 
3  Guideline (EU) 2015/280 of the European Central Bank  of 13 November 2014 on the establishment of the 
Eurosystem Production and Procurement System  (ECB/2014/44)  (OJ L 47, 20.2.2015, p. 29 ). 
ECB -PUBLIC  
2 2.2 In accordance with Articles 1(2) and 8(2) of Guideline (EU) 2015/282 (ECB/2014/44), w hen a 
separate legal entity is established, in the form of a cooperation between the in- house group NCBs,  
to produce euro banknotes , this enti ty may only be directly awarded contracts for the production of 
euro banknotes if it is  jointly controlled by the in- house group NCBs that are  party to the 
cooperation agreement . These provision s do not require that a certain minimum share in the capital 
of the legal entity  concerned be held by the parties  to the cooperation agreement .  
2.3 Since Portuguese law still requires the BdP to hold 51% or more of the share capital of the legal 
entity that produces  and/or  prints euro banknotes, the ECB understands that  this requirement must  
be eliminated in order to facilitate the BdP’s participation  in the forms of mutual cooperation 
between Eurosystem NCBs  provided for in Guideline  (EU) 2015/280 (ECB/2014/44) . 
 
3. Specific observations  
3.1 According to the new Article 2 of D ecree- Law 400/99, as amended by the draft Decree- Law, the 
activity of producing and printing euro banknotes may be carried out by the BdP, within the 
Eurosystem, either directly or through the limited liability company Valora –  Serviços de Apoio à 
Emissão Monetária, SA., or any other  legal entity  that the BdP establishes  for th is purpose,  or in 
which it acquires  a capital holding.  
3.2 The ECB understands the reference to ‘within the Eurosystem’ as meaning that the production and 
printing of euro banknotes, regardless of whether it is done directly by the BdP or not, must  be 
conducted in full compliance with the Eurosystem’s rules, such as those laid down by Guideline 
(EU) 2015/580 ( ECB/2014/44) . 
3.3 In this respect , the ECB notes that a more precise reference to the applicable ECB G uidelines 
would clarify the interpretation of Article 2 of Decree- Law 400/99, as amended by the draft 
Decree- Law. In order to make a general reference to the applicable ECB legal framework that 
would take into account any future legislativ e changes , it may be useful to include a general 
reference to the Eurosystem ’s legal framework for the production and procurement of euro 
banknotes . 
 
This opinion will be published on the ECB’s website.  
 
 
Done at Frankfurt am Main, 23 November 2015.  
 
[signed]  
 The President of the ECB  
Mario DRAGHI