EN ECB -PUBLIC  
 
OPINION OF THE EUROPEAN CENTRAL BANK  
of 5 December 2016  
on the transfer  of public tasks concerning coins to De Nederlandsche Bank  
(CON/20 16/58) 
 
Introduction and legal basis  
On 8 November 2016, the European Central Bank (ECB) received a request from the Minister of Finance 
of the Netherlands for an opinion on a draft ministerial regulation (hereinafter the ‘draft m inisterial 
regulation’) and a draft royal order (hereinafter the ‘draft royal order’  and, together with the draft 
ministerial regulation, the ‘draft laws’ ) relating to the transfer of public tasks concerning coins to De 
Nederlandsche Bank ( DNB ). 
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, second and third indent s of Article 2(1) of Council 
Decision 98/415/EC1, as the draft laws  concern currency matters, means of payment and DNB . 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 l aws 
1.1 The draft ministerial regulation amends the ministerial regulation concerning the establishment  of 
the Coin National Analysis Centre (CNAC)2. It provides that DNB, instead of the Royal Dutch Mint  
N.V. (the ‘Mint’) , shall be designated as the CNAC under Article 5 of Council Regulation (EC) No 
1338/20013 and shall be responsible for the examination by  the CNAC of suspected counterfeit 
coins.  The draft r oyal order appoints DNB to carry out the tasks of the CNAC.  
1.2 Article 2(a) of t he draft royal order reconfirms , for the sake of clarity , DNB’s existing task of putting  
into circulation and recirculation euro coins . The draft royal order  also authorises DNB to carry out 
three specific coin-related tasks currently carried out by the Mint, as part of DNB’s responsibility  for 
the circulation of coins, namely ( b) the withdra wal from circulation of euro coins and ‘special coins 
that hold the status of legal tender ’ that are unfit for circulation4; (c) the demonetisation and sale of 
euro coins, special coins and excess euro coins at the request of the Minister  of Finance5; and (d) 
                                                 
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  Regulation of the State Secretary for Finance of 3 December 2001 for the Creation of the National Analysis Centre 
for Coins , Staatscourant  2001/ 247. 
3  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).  
4  See Article 2(b) of the draft royal order.  
5  See Article 2(c) of the draft royal order.  
ECB -PUBLIC  
2 the management of the State’s euro coin stocks and the stamps and models not necessary for the 
production of Dutch euro coins and ‘coins  not holding the status of legal tender ’6.  
1.3 As noted in the explanatory memorandum accompanying the draft law, t he main reasons for the 
transfer to DNB of the abovementioned public coin tasks are related to the new strategic direction 
for the State’s shareholding in the Mint . On 22 November 2016 the State’s shares in the Mint were 
sold to Groep Heylen, which means t hat the Mint will have a private shareholder and it will no 
longer be appropriate for it  to carry out public coin -related tasks. DNB already has a similar 
responsibility concerning euro banknotes  as well as  some public tasks in respect of coins , and is 
therefore well  positioned to perform these additional tasks relating to coins.  
1.4 As noted in the Minister  of Finance’s request for an opinion, to ensure compliance with the 
prohibition of monetary financing an agreement will be concluded between the Ministr y of Finance 
and DNB that will provide for sufficient funds to be paid in a timely manner , on the first working day 
of the year , from the State Treasury to DNB. The amount to be paid to DNB will fully cover the 
costs of the new tasks expected in that year.  
 
2. General observations  
2.1 The draft laws complement DNB’s existing tasks in the field of protection against counterfeiting  
and, hence, do not confer genuinely new tasks  in this area. DNB has already been appointed  to 
carry out the tasks of the Nationa l Analysis Centre (NAC) , which concern suspect counterfeit euro 
banknotes7.  
The ECB notes  that the protection of the euro against counterfeiting of both banknotes and coins 
will be henceforth in the hands of one single a uthor ity, DNB . While DNB acts within the Eurosystem 
framework with regard to the protection of euro banknotes, its new euro coin- related tasks are 
conferred upon it as a function other than those specified in the Statute of the European System of 
Central Banks and of the European Central Bank (hereinafter the ‘Statute of the ESCB’) , which 
shall be performed in accordance with Article 14.4 of the Statute of the ESCB and shall not be 
regarded as forming part of the functions of the Eurosystem . 
2.2 The draft royal order further complements DNB’s existing tasks with respect to the circulation and 
recirculation of euro circulation coins  and, hence, do es not confer genuinely new tasks .  
 
3. Specific observations  
3.1 Coin terminology  
3.1.1  The ECB notes  that the draft r oyal order makes use of the coin-related terminology used in certain 
existing provisions of Dutch coinage legislation , which refer to euro coins, special coins that hold 
the status of legal tender and coins for investment purposes8. This t erminology is not consistent 
                                                 
6  See Article 2(d) of the draft royal order.  
7  Royal Order of 6 December 2001 for creation of a Nati onal Analysis Centre against counterfeiting,  Staatscourant 
2001/244.   
8  See Dutch Coin Act 2002, Staatsblad 2001/631; Royal Order on Special Coins of 7 January 2002, Staatsblad  
2002/24.  
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3 with the terminology established by the relevant Union legislation for euro coins, namely (1) Council 
Regulation (EU) No 729/20149, and (2) Regulation (EU) No 651/2012 of the European Parliament 
and of the Council10. In pa rticular, Article 2 of Regulation (EU) No 729/2014 contains a definition of 
‘circulation coins’, which includes both ‘regular coins’ and ‘commemorative coins’ ; and Article 1(3) 
of Regulation (EU) No 651/2012 contains a definition of ‘collector coins ’, meaning euro coins 
intended for collection that are not issued with a view to their entry into circulation. The ECB 
understands that, where the draft r oyal order uses the term ‘euro coins’, it intends to refer to 
circulation coins, including both regular coins  and commemorative coins . The ECB further 
understands that  where the draft royal order uses the term s ‘special coins that hold the status of 
legal tender’  and ‘coins for investment purposes’ , it intends to refer to two specific kinds of collector 
coins , both of which, consistent with Article 5(1) of Regulation (EU) No 651/2012,  have the status of 
legal tender only in the Netherlands. The ‘special coins that hold the status of legal tender’ refer to 
collector coins issued in denominations of five , ten, twenty and fifty  euro.  The ‘coins for investment 
purposes’  refer to collector coins  which may be issued pursuant to a 2015 amendment to the Dutch 
Coin Act11. This amendment to the Dutch Coin Act was made to meet a possible demand on  a part 
of the general public at that time to convert  their savings in to pure and standardised precious metal 
products. The quality of the metals contained in these collector coins exceeds even the quality of 
the other collector coins.  For the sake of consistency and legal certainty , it would be helpful if the 
terminology used in Dutch law for these different kinds of coins could be better aligned with the 
terminology used in Union law. 
3.1.2  In accordance with Article 1(3)  of Regulation (EU) No 651/2012, euro collector coins are not issued 
with a view to their entry into circulation. Consistent with this, t he draft royal order could usefully  be 
amended so as to make reference to the sale, rather than the circulation, of col lector coins.  
3.2 Prohibition on monetary financing  
3.2.1 The monetary financing prohibition is laid down in Article 123(1) of the Treaty and replicated in 
Article 21.1 of the Statute of the ESCB, and prohibits overdraft facilities or any other type of credit 
facility with the ECB or the national central banks ( NCBs) in favour of Union institutions, bodies, 
offices or agencies, central governments, regional, local or other public authorities, other bodies 
governed by public law, or public undertakings of Member States. The precise scope of application 
of the monet ary financing prohibition is further clarified by Council Regulation (EC) No 3603/9312. 
3.2.2 Article 128(2) of the Treaty  provides that  the right to issue euro coins rests with the Member States . 
Consequently, it is up to each Member State to specify the legal issuer of the euro coins13. In view 
of the fact that the tasks conferred on DNB by the draft laws complement existing tasks of DNB but do not constitut e genuinely new tasks  in the field of protection against counterfeiting and circulation 
                                                 
9  Council Regulation (EU) No 729/2014 of 24 June 2014 on denominations and technical specifications of euro coins 
intended for circulation (OJ L 194, 2.7.2014, p. 1).  
10  Regulation (EU) No 651/2012 of the European Parliament and of the Council of 4 July 2012 on the issuance of euro 
coins (OJ L 201, 27.7.2012, p. 135).  
11  See Article 4a of the Dutch Coin Act  2002, which followed from the Amendment Law on financial markets 2 015, 
Staatsblad 2014/472.  
12 Council Regulation (EC) No 3603/93 of 13 December 1993 specifying definitions for the application of the 
prohibitions referred to in Articles 104 and 104b (1) of the Treaty (OJ L 332, 31.12.1993, p. 1). See also paragraph 
3.2.1 of Opinion CON/2014/56.  All ECB opinions are published on the ECB’s website at www.ecb.europa.eu.  
13  See paragraph 2.1 of Opinion CON/2016/4 and paragraph 2 of Opinion CON/2014/56.   
ECB -PUBLIC  
4 of coins , the ECB welcomes the Minister  of Finance’s clarification that an agreement will be 
concluded between the Ministry of Finance and DNB . This agreement will provide for  full 
remuneration,  to be paid by the State to DNB in a timely manner at the beginning of each year from 
funds held by the State Treasury , of the costs to be incurred by DNB in carrying out the tasks 
expected in the coming year14.  
3.2.3  For the time being, the ECB is not in a position to assess the way in which the abovementioned 
reimbursement will be agreed upon. The ECB would therefore appreciate receiving a copy of the 
draft agreement between the Ministry of Finance and DNB prior to its execution and entry into 
effect15.  
 
This opinion will be published on the ECB’s website.  
 
 
Done at Frankfurt am Main, 5 December 2016.  
 
[signed]  
 
The President of the ECB  
Mario DRAGHI  
                                                 
14  See paragraph 3.2.2 of Opinion CON/2016/4 and paragraph 3.1.9 of Opinion CON/2016/6.  
15  See paragraph 2.2 of Opinion CON/2016/14.