OPINION OF THE EUROPEAN CENTRAL BANK
at the request of the Spanish  Ministry of Economy on a draft law of modification of
Law 46/1998, on the introduction of the euro
CON/00/22
1. On 5 September 2000 the European Central Ba nk (ECB) has received a request from the
Spanish Ministry of Economy for an opini on on a draft law amending Law 46/1998, on the
introduction of the euro (her einafter the “Draft Law”).
2. The ECB’s competence to deliver an opinion on th e Draft Law is based on Article 2 (1), first
indent, of the Council Decision (98/415/EC) of 29 June 1998 on th e consultation of the ECB by
the authorities of the Member States on draft le gislative provisions, as the legislative proposal
contains provisions concerni ng currency matters. In accordance with Article 17.5, first
sentence, of the Rules of Procedure of the Eu ropean Central Bank, this ECB Opinion has been
adopted by the Governing Council of the ECB.
3. The Draft Law is purported to amend Law 46/1998 on the introducti on of the euro (hereinafter
“Law 46/1998”). Law 46/1998 deals with the intr oduction of the euro and therefore concerns
currency matters which fall within the c onsultative competence of the ECB under the
aforementioned provisions. The EC B has already given its opinion at  the request of the Spanish
Ministry of Economy and Finance on the Law 46/1998 on 21 July 1998 (CON/98/31)
(hereinafter the “Opinion on Law 46/1998”). The Draft Law now submitted is equally subject
to the opinion of the ECB for the same reasons that applied to the Law 46/1998 that it modifies.
This opinion must be read in the light of Opinion on Law 46/1998. 
4. The amendments proposed by the Draft Law con cern (i) the shortening of the period during
which banknotes and coins denominated in nati onal currency units shall remain legal tender
after the transitional period, as defined by Article 1 of Council Regulation 974/98 of 3 May
1998 on the introduction of the euro (h ereinafter the “Council Regulation”),1 and their
replacement by euro banknotes and coins (Articles 1, 2 and 3 of the Draft Law); and (ii) the
1 OJ L 139, 11.5.1998, p. 1-5.
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empowering of the Ministry of Economy and Finance to adopt all necessary measures regarding
both the front-loading of euro banknotes and coins and the optimal implementation of the Law
46/1998 concerning the period of exchan ge (Article 4 of the Draft Law).
5. Article 1 of the Draft Law modifies Article  2, paragraph 2 of Law 46/98 reducing to two
months after the end of the transitional pe riod the time during which banknotes and coins
denominated in pesetas may circulate simultaneous ly as legal tender with banknotes and coins
denominated in euro, that is, until 28 February 2000 (as opposed to the previous 6 months – i.e.
until 30 June 2002). Article 2 of the Draft Law gives a new wording to paragraph 1 of Article24 of Law 46/98 in order to ensure that bank notes and coins denominated in pesetas may be
exchanged against euro banknotes and coins until 30 June 2002, free of charge and according tothe conversion rates, at the Banco de España and at Credit Institutions as defined underparagraph 2 of Article 24 of Law 46/98. In so far as the exchange after 1 July 2002 isconcerned, Article 3 of the Dr aft Law modifies Article 25 of  Law 46/1998. This new provision
maintains the obligation of Banco de España, with the exclusion of credit institutions, to
exchange banknotes and coins denominated in national currency units against euro banknotes
and coins after the aforementioned date and pr ovides that such exchange will be done in
accordance with the general rounding rules contained in Article 11 of Law 46/1998.
6. Finally, Article 4 of the Draft Law adds two ne w indents to the Second Final Article of Law
46/1998 which empower the Minist er of Economy (i) to enact all rules necessary for the
frontloading of limited quantities of banknotes and coins before 1 January 2002 with the aim offacilitating the transition to the new currency; and ( ii) to enact all necessary  rules to ensure the
best implementation of the provisions of Law 46/1998 concerning th e period of exchange.
7. The Draft Law constitutes the exercise by th e Kingdom of Spain of its prerogative under
paragraph 1 of Article 15 of the Council Regulation,2 to decide on a shortening of the period
when banknotes and coins denominated in nationa l currency units may circulate as legal tender
in its national territory after the end of the tr ansitional period as defined in Article 1 of the
Council Regulation. As such, the ECB welcomes the proposed amendments as they are in linewith the initiatives adopted by all other par ticipating Member States and since they will
contribute to an earlier general circulation of th e new euro banknotes and coins. The assessment
is therefore positive, and no major inconsistencies or problems are to be mentioned. The ECBwould, however, like to note that as the proposed  amendments stand, credit institutions referred
to under  paragraph 2 of Article 24 of Law 46/1998, will remain under the obligation toexchange banknotes and coins denominated in pesetas against euro banknotes and coins, free of
2 Paragraph 1 of Article 15 of Council Regulation reads: “Banknotes and coins denominated in a national
currency unit as referred to in Article 6(1) shall remain legal tender within their territorial limits until six months
after the end of the transitional period at the latest; this period may be shortened by national law”
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charge, until 30 June 2002, even though banknotes and coins denominated in pesetas will cease
to be legal tender as from 28 February 2002. This solution is very much appreciated by the ECBas it guarantees citizens and undertakings a reasonable period to effectuate the exchange.
8. In relation to the article 4 of the Draft Law, in  view of the possibility that the decision-making
bodies of the ESCB adopt rules concerning so me aspects of the frontloading exercise by
National Central Banks and in order to guarantee consistency between the actions of all publicactors involved, the ECB recommends the addition of a sentence in the proposed new indent c)
of Second Final Article of Law 46/1998 to th e effect that, when adopting the necessary
measures to ensure the frontloading of bank notes denominated in euro, the Minister of
Economy should act consistently with the acts adopt ed by the Banco de España in the exercise
of its role within the ESCB.
9. Finally, the ECB requests that it be consulte d with respect to any royal decree and/or
ministerial order to be enacted pursuant to the Law 46/1998, as eventually amended by the
proposed Draft law.
10. 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 5 October 2000.
The President of the ECB
[signed]
Willem F. Duisenberg