EN Official Journal of the European Union C 137/7

OPINION OF THE EUROPEAN CENTRAL BANK

of 2 March 2012

on a proposal for a regulation of the European Parliament and of the Council establishing an exchange, assistance and training programme for the protection of the euro against counterfeiting (the ‘Pericles 2020’ programme)

(CON/2012/17)

2012/C 137/02

Introduction and legal basis

On 26 January 2012, the European Central Bank (ECB) received a request from the Council of the European Union for an opinion on a proposal for a regulation of the European Parliament and of the Council establishing an exchange, assistance and training programme for the protection of the euro against counterfeiting (the ‘Pericles 2020’ programme) (1) (hereinafter the ‘proposed regulation’). On 6 February 2012, the ECB received a second request from the European Parliament for an opinion on the same proposed regulation.

The ECB’s competence to deliver an opinion is based on Article 133 and Article 127(4) and Article 282(5) of the Treaty on the Functioning of the European Union. 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. General observations

1.1. The ‘Pericles’ programme is an exchange, assistance and training programme for the protection of the euro against counterfeiting and related fraud. The proposed regulation will replace the legal basis of the ‘Pericles’ programme which will expire at the end of 2013 (2), thus extending it to the end of 2020. The ECB reiterates its view that the ‘Pericles’ programme is a useful contribution to the activities already deployed by the ECB, Europol and national authorities in the fight against euro counterfeiting (3). The ECB is confident that the ‘Pericles 2020’ programme will continue to contribute to preserving the integrity of euro banknotes, including the second series of euro banknotes.

1.2. The ECB underlines its active involvement in the fight against euro banknote counterfeiting. In particular, the ECB develops banknote designs and advanced technical features for euro banknotes, which allow the general public and experts to distinguish genuine banknotes from counterfeits. It is a common practice to upgrade banknotes after they have been in circulation for a few years to keep ahead of counterfeiters. The Eurosystem is also taking this precautionary measure and will shortly initiate the production of the second series of euro banknotes. Moreover, the ECB analyses new counterfeit types at its Counterfeit Analysis Centre (CAC) and uses the knowledge gained to better advise law enforcement authorities. The CAC coordinates the dissemination of all known technical and statistical data on euro counterfeits to all relevant parties.

2. Specific observations

2.1. The second paragraph of Article 4 of the proposed regulation sets out a method to evaluate the achievement of the specific objective of the ‘Pericles 2020’ programme. In this respect, results not only depend on effective action under the ‘Pericles 2020’ programme, but also on a number of external factors, including the number of counterfeits in circulation, the availability of sufficient human, financial and technical resources at financial, technical, law enforcement and judicial authorities, and the implementation of other training programmes organised for these authorities. Accordingly, the programme should be evaluated against all the aspects that influence euro counterfeiting and fraud. Therefore, the ECB recommends full involvement of the ECB and Europol in evaluating the ‘Pericles 2020’ programme as provided for in Article 12(3) and (4) of the proposed regulation.

2.2. Under the ‘Pericles 2020’ programme, proposals presented by the participating Member States may include participants from third countries, if their presence is important for the protection of the euro. While acknowledging the benefits for euro counterfeit and fraud deterrence worldwide by including third countries in the ‘Pericles 2020’ programme, third country involvement should be sensible and proportionate.

2.3. The ECB notes that Article 8(2)(a) and (c) and Article 10(3) of the proposed regulation refer to the use of detection tools and provide for grants to purchase equipment. The ECB agrees with the proposal to make grants for the acquisition of general laboratory equipment, such as microscopes, infrared readers, callipers, densitometers, micrometers, readers of conductivity and magnetism, that aid the investigative process and are not specifically designed or marketed as counterfeit detecting equipment. The ECB considers that the only reliable counterfeit detection machines and devices are those listed on its website as having performed satisfactorily in tests involving a batch of topical counterfeit types and genuine banknotes with a range of wear and tear characteristics. Such machines and devices are however aimed at the professional cash handling industry and are in general beyond the scope of the specialised anti-counterfeiting authorities defined as the target group in Article 8(2)(c) of the proposed regulation (4). Therefore, the ECB is of the opinion that it is not appropriate to consider financing the purchase of counterfeit detectors with funds of the ‘Pericles 2020’ programme or using counterfeit detectors by specialised anti-counterfeiting authorities.

2.4. It would be beneficial for the Commission, the ECB and Europol to jointly examine initiatives to be funded under the ‘Pericles 2020’ programme (5), thus avoiding duplication and overlap between the ‘Pericles 2020’ programme and other relevant programmes and activities and ensuring the development of a common strategy against euro counterfeiting and fraud. Therefore, recital 7 and Article 11 of the proposed regulation should be amended to provide for: (a) timely consultation of the principal parties involved by the Commission in relation to the annual work programme; and (b) obtaining the ECB’s and Europol’s agreement on the annual work programme for the purpose of its adoption (6). In this regard, the ECB and Europol should be given sufficient time to examine the draft annual work programme and to submit their views prior to its discussion within the appropriate advisory committee.

2.5. The ECB welcomes Article 12(1) of the proposed regulation requiring the Commission to implement the ‘Pericles 2020’ programme in cooperation with the Member States, through consultations at different implementation stages, taking into account relevant measures undertaken by other competent entities, in particular the ECB and Europol. While Article 12(1) of the proposed regulation ensures a sufficient level of cooperation at Union level as well as consistency between the ‘Pericles 2020’ programme and other relevant programmes and activities, the ECB recommends to the Commission to allow for sufficient time for familiarisation with the documentation in relation to the annual work programme before consulting the ECB and Europol on it within the appropriate advisory committee.

2.6. The ECB recommends amending proposed Article 12(3) and (4) to allow for the involvement of the ECB and Europol in the evaluation of the effectiveness and efficiency of the ‘Pericles 2020’ programme and of its possible renewal, modification or suspension.

Done at Frankfurt am Main, 2 March 2012. The President of the ECB Mario DRAGHI

(1) COM(2011) 913 final.

(2) Originally, the ‘Pericles’ programme was put in place by Council Decision 2001/923/EC of 17 December 2001 establishing an exchange, assistance and training programme for the protection of the euro against counterfeiting (the ‘Pericles’ programme) (OJ L 339, 21.12.2001, p. 50). Decision 2001/923/EC was extended to the non-euro area Member States by Council Decision 2001/924/EC of 17 December 2001 extending the effects of the Decision establishing an exchange, assistance and training programme for the protection of the euro against counterfeiting (the ‘Pericles’ programme) to the Member States which have not adopted the euro as the single currency (OJ L 339, 21.12.2001, p. 55). Subsequent amendments to Council Decision 2001/923/EC extended the scope and duration of the ‘Pericles’ programme until 31 December 2013.

(3) See paragraph 1 of ECB Opinion CON/2006/35 of 5 July 2006 at the request of the Council of the European Union on two proposed Council decisions on the exchange, assistance and training programme for the protection of the euro against counterfeiting (the ‘Pericles’ programme) (OJ C 163, 14.7.2006, p. 7). All ECB opinions are published on the ECB’s website at: http://www.ecb.europa.eu

(4) Moreover, following the impact assessment (SEC(2011) 1615 final), it is clear that the possibility to finance the purchase of equipment refers to competent national (third country) anti-counterfeiting agencies for protecting the euro against counterfeiting with particular focus on specialised agencies operating in sensitive third countries having different priorities than fighting against euro counterfeiting.

(5) See paragraph 8 of ECB Opinion CON/2005/22 of 21 June 2005 at the request of the Council of the European Union on two proposed Council decisions on the exchange, assistance and training programme for the protection of the euro against counterfeiting (the ‘Pericles’ programme) (OJ C 161, 1.7.2005, p. 11), and paragraph 2.2 of ECB Opinion CON/2006/35 of 5 July 2006 at the request of the Council of the European Union on two proposed Council decisions on the exchange, assistance and training programme for the protection of the euro against counterfeiting (the ‘Pericles’ programme) (OJ C 163, 14.7.2006, p. 7).

(6) See paragraph 8 of Opinion CON/2005/22.