EN ECB -PUBLIC  
 
 
OPINION OF THE EUROPEAN CENTRAL BANK  
of 2 April 2014  
on crisis management  
(CON/20 14/24) 
 
Introduction and legal basis  
On 26 February 2014 , the European Central Bank (ECB) received a request from the Office of the 
Lithuanian Government for an opinio n on a draft law on crisis management  (hereinafter the ‘draft law ’). 
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 De cision 98/415/EC1, 
as the draft law relates to Lietuvos bankas . 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 law  
1.1 The draft law establish es a general legal framework for cr isis management in Lithuania. In 
particular, the draft law  (a) defines the aim s and objectives of crisis prevention and management , 
(b) lists the entities involved in crisis management, their respec tive competence and arrangements 
for cooperation , and  (c) provides for international cooperation with the Union and the North 
Atlantic Treaty Organisation in the field of crisis prevention and management.  
1.2 The draft law defines ‘crisis’ very broad ly as ‘any situation threatening the national security and 
caused by a national or international event or process , the prevention of potential, or elimination of 
actual effects of which necessitates recourse to crisis management measures’. It therefore covers 
situations  which  go beyond the competence of a single national institution  and require coordinate d 
action . According to the draft law, it is for the Lithuanian government to announce and revoke a 
state of crisis,  and to decide which crisis management measur es should be applied.  
1.3 The draft law also designates Lietuvos bankas as one of the  institution s responsible , ‘within its 
remit ’, for the prevention and management of crises.  
 
                                                      
1  Council Decision 98/415/EC of 29  June 1998 on the consultation of the European Central Bank by national autho rities 
regarding draft legislative provisions ( OJ L 189, 3.7.1998, p. 42). 
ECB -PUBLIC  
2 2. General observations  
2.1 Under the Treaty, exclusive competence for moneta ry policy is conferred on the Union for Member 
States whose currency is the euro2 and such Member States may not adopt unilateral measures in 
this field. Therefore, in adopting the euro a Member State irreversibly transfers to the Union 
monetary policy and  other powers enumerated in the Treaty and the Statute of the European 
System of Central Banks and of the European Central Bank (hereinafter the ‘Statute of the ESCB’) 
with regard to ESCB tasks. In these fields (i.e. setting reference rates, injecting or w ithdrawing 
liquidity in the market, ensuring efficient and sound clearing and payment systems, managing 
foreign reserves, issuing banknotes, contributing to the stability of the financial system) , certain 
policy -making and legislative powers belong exclusi vely, under Articles 8 and 12 of the Statute of 
the ESCB, to the decision -making bodies of the ECB3. 
2.2 Article 347 of the Treaty , however,  envisages that a Member State  may be called upon to take 
action  in the event of serious internal disturbances affec ting the maintenance of law and order, war, 
serious international tension constituting a threat of war , or in order to carry out obligations it has 
accepted for the purpose of maintaining peace and international security . Accordingly, in the event 
of emerg ency conditions under Article 347, national authorities may be justified in exercising, on a 
temporary basis, powers that fall within the exclusive competence of the ESCB4. 
2.3 Since Lithuania  is a Member State with a derogation  pursuant to Article 139 of the Treaty,  the 
above requirements will appl y once Lithuania adopts the euro and Lietuvos bankas  becomes a fully 
integrated member of the Eurosystem.  
 
3. Specific observations  
3.1 Article 10 of the draft law  defin es the duties  of Lietuvos bankas in crisis situations , providing  that, 
‘within its remit’ , Lietuvos bankas  is to: (1) carry out analysis of risk factors in the financial sector  
as well as analysis of information on the potential or actual crisis; (2) submit proposals to the  
government on measur es for crisis prevention and crisis management  in the financial sector  as well 
as on the announcement or revocation of a state of crisis in the financial sector; (3) apply measures 
for crisis prevention and crisis management in accordance with laws and other legal acts ; and 
(4) perform other functions related to crisis prevention and crisis management in accordance with 
the draft law and other legal acts . 
The ECB understands the expression that Lietuvos bankas is acting ‘within its remit’ to imply  that 
Lietuvos bankas  will act within its competence  under  the Law on Lietuvos bankas, as well as under 
the Treaty and the Statute  of the ESCB , and recommends clarifying the draft law accordingly.  
                                                      
2  See Article 3(1)(c) of the Treaty.  
3  See Opinion CON/2006/6, paragraph 8 and Opinion CON/2002/27, paragraph 9 . All ECB opinions are published on the 
ECB’s website at www.ecb.eu ropa.eu . 
4  See Opinion CON/2006/6, paragraph 14.  
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3 3.2 The ECB further understands that the list of  tasks to be perfo rmed by  Lietuvos bankas in cris is 
situations  is not exhaustive and that Lietuvos bankas may be required to apply other measures and 
perform other function s, within its competence , which are laid down  in other relevant legislation . 
Moreover , whilst Article 14 of the draft law  lists potential crisis management measures  without  
specify ing any measure to be taken by  Lietuvos bankas , it includes ‘any other measures necessary 
for the prevention of potential effects of the crisis or elimination of the effects ther eof’. It is 
therefore not clear whether Article 14 of the draft law assigns  any tasks to Lietuvos bankas , and the 
ECB recommends clarifying the draft law in this regard .  
3.3 When implementing crisis prevention and management measures and performing fun ctions under  
the draft law, any involvement of Lietuvos bankas should be fully compatible with its institutional 
and financial independence to safeguard the proper performance of its tasks under the Treaty and 
the Statute  of the ESCB . The principle of cent ral bank independence  requires , inter alia , that 
Member States do not put their national central banks in a position where they have insufficient 
financial resources and inadequate net equity to carry out their tasks related to the ESCB  or the 
Eurosystem5. 
 
This opinion will be p ublished on the ECB’s website.  
 
 
Done at Frankfurt am Main, 2 April  2014 . 
 
[signed]  
 
The President of the ECB  
Mario DRAGHI  
                                                      
5  See Opinion CON/2012/63, paragraph 6.1.