EN Official Journal of the European Union C 284/6

OPINION OF THE EUROPEAN CENTRAL BANK

of 16 November 2009

on a proposal for a Council Regulation concerning authentication of euro coins and handling of euro coins unfit for circulation

(CON/2009/95)

2009/C 284/02

Introduction and legal basis

On 30 September 2009, the European Central Bank (ECB) received a request from the Council of the European Union for an opinion on a proposal for a Council Regulation concerning authentication of euro coins and handling of euro coins unfit for circulation (1) (hereinafter the ‘proposed regulation’).

The ECB’s competence to deliver an opinion is based on the third sentence of Article 123(4) of the Treaty establishing the European Community, and on the first indent of Article 105(4) of the Treaty, in combination with Article 106(2) of the Treaty, as the proposed Regulation relates to the technical specifications of euro coins. 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.

General observations

The proposed regulation implements the obligation placed on credit institutions and other institutions addressed in Article 6 of Council Regulation (EC) No 1338/2001 of 28 June 2001 laying down measures necessary for the protection of the euro against counterfeiting (2), to ensure that euro coins they receive and intend to put back into circulation are checked for authenticity and that counterfeits are detected. The ECB has adopted very similar measures as regards the obligation of the same institutions to check the authenticity of euro banknotes pursuant to Council Regulation (EC) No 1338/2001. Having similar legislation in place that applies to institutions involved in the distribution to the public of euro banknotes and coins will help to reduce the threat that counterfeiting of euro banknotes and coins poses to the single currency.

For the purposes of the proposed regulation, the Commission’s decision to build on existing coin sorting procedures and equipment, which have been developed on the basis of the Commission Recommendation 2005/504/EC of 27 May 2005 concerning authentication of euro coins and handling of euro coins unfit for circulation (3), is certainly the best way to ensure continuity of the good practices existing so far and thus guarantee the efficiency of the planned measures.

Handling fees

Notwithstanding Article 8(2) and (4) of the proposed regulation, which allow Member States, to a certain extent, to provide an exemption from handling fees, the ECB questions whether withholding a handling fee of 5 % of the face value of euro coins unfit for circulation serves the purpose of the proposed regulation, which is to oblige Member States to withdraw unfit euro coins from circulation. As stated in Recital 4 of the proposed regulation, the circulation of unfit euro coins ‘makes them more difficult to use’ and ‘may create confusion to the users as to the authenticity of the coins’. Euro coins unfit for circulation need to be withdrawn from circulation to ensure that euro coins can be reliably checked for genuineness and that their exposure to counterfeiting is reduced. In this respect, the ECB considers that the reimbursement of the value or replacement of euro coins unfit for circulation should be, as a general rule, free from any handling fees. As emphasised in past opinions of the ECB, the application of a fee also contradicts the notion of legal tender, whereby it is a public task to exchange legal tender money at full value (4).

However, the ECB considers that the application of a fee of 15 % would be justified in cases where the volume of unfit coins to be checked is comparatively high, due to anomalies or deviations from the specifications referred to in Article 9 of the proposed regulation.

Where the ECB recommends that the proposed regulation is amended, a specific drafting proposal is set out in the Annex accompanied by explanatory text to this effect.

Done at Frankfurt am Main, 16 November 2009. The President of the ECB Jean-Claude TRICHET

(1) COM(2009) 459 final.

(2) OJ L 181, 4.7.2001, p. 6.

(3) OJ L 184, 15.7.2005, p. 60.

(4) See Opinion CON/2009/52. All ECB opinions are published on the ECB’s website at http://www.ecb.europa.eu