EN ECB -PUBLIC 
 
 
OPINION OF THE EUROPEAN CENTRAL BANK  
of 21 August  2013  
on the handling and recirculation of euro banknotes and coins  
(CON/20 13/65) 
 
Introduction and legal basis  
On 16 July 2013, the European Central Bank (ECB) received a request from Latvijas Banka for an 
opinion on a Regulation on the handling  and recirculation of euro banknotes and coins  (hereinafter the 
‘draft regulation’ ). 
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 U nion an d the first, second and third indent s of Article  2(1) of Council 
Decision 98/415/EC of 29  June 1998 on the consultation of the European Central Bank by national 
authorities regarding draft legislative provisions1, as the draft regulation relates to currency matters, 
means of payment and Latvijas Banka. 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 regulation  
1.1 The main objective of the draft regulation is to implement the requirements of Regulation (EC) 
No 1338/2001 of the Council of 28 June 2001 laying down measures necessary for the protection 
of the euro against counterfeiting2, Regulation (EU) No  1210/2010 of the European Parliament and 
of the Council of 15 December 2010 concerning authentication of euro coins and handling of euro 
coins unfit for circulation3, and Decision ECB/2010/14 of 16 September 2010 on the authenticity 
and fitness checking and recirculati on of euro banknotes4. 
1.2 To that end, t he draft r egulation lays down, inter alia,  the procedure for the registration and control 
of the activities of companies engaged in the handling  and recirculation of euro banknotes and 
coins , the requirements relati ng to  machines used to process  euro banknotes and coins and relating 
to the quality of the processing of euro banknotes , and the procedures for reporting data concerning 
the machines used to process euro banknotes and coins and the volumes of processed eur o 
banknotes and coins.  
 
                                                 
1  OJ L 189, 3.7.1998, p.  42. 
2  OJ L 181, 4.7.2001, p. 6.  
3  OJ L 339, 22.12.2010, p. 1 . 
4  OJ L 267, 9.10.2010, p. 1.  
ECB -PUBLIC  
2 2. General observations  
2.1 The draft regulation imposes  obligations on cash handlers and seeks to safeguard the integrity of 
euro banknotes and coins as a means of payment. The ECB generally welcomes the draft regulation 
and is con fident that its provisions will ensure the preservation of euro banknotes and coins in 
circulation and therefore maintain the general public’s confidence in euro banknotes and coins.  
2.2 The ECB considers it essential that any draft legislation should clar ify the primacy and direct 
application of Union law on the authentication of euro banknotes and coins and the handling of 
euro banknotes  and coins unfit for circulation. For consistency reasons, the ECB favours the use of 
direct references to Regulation (E C) No  1338/2001, Regulation (EU) No 1210/2010 and Decision  
ECB/2010/14 or, alternatively, reproduction of their  provisions without any alterations or additions.  
2.3 In addition, although national authorities are not formally obliged to consult the ECB on t he 
implementation of the Member States’ obligation to take the necessary measures to ensure that breaches of Article 6(1) of Regulation (EC) No 1338/2001 are subject to effective, proportionate 
and deterrent sanctions, the ECB believes it is beneficial to harmonise throughout the Union the 
national measures implementing the abovementioned obligation to the extent possible, subject to 
national peculiarities
5. 
 
3. Specific observations  
3.1 Annexes 2 to 4 to the draft regulation are drafted based on Annex I, A nnex III  and Appendix 1 to 
Decision ECB/2010/14. The ECB notes that Decision ECB/2010/14, including its annexes and 
appendices,  is amended by  Decision ECB/2012/19 of 7 September 2012 amending Decision 
ECB/2010/14 on the authenticity and fitness checking and recirculation of euro banknotes6, and 
these amendments need to be reflected in the draft regulation  and its annexes in particular . The 
ECB further notes  that the draft regulation does not mirror Annexes IIa and IIb of Decision 
ECB/2010/14, which should be implemented to provide for criteria for classification and treatment 
of euro banknotes by customer -operated machines and by staff -operated machines.    
3.2 Paragraphs 29 and 30 of the draft regulation make  specific reference to cash management IT 
systems (CashSSP and One Gate ), thus appearing to limit the choice of technology that may be 
used. The se paragraphs should be re drafted to avoid reference to  specific tools.  
 
 
                                                 
5  Paragraph 2.4 of Opinion CON/2011/105.  
6  OJ L 253, 20.9.2012, p. 19.  
ECB -PUBLIC  
3 This opinion will be published on the ECB’s website.  
 
 
Done at Frankfurt am Mai n, 21 A ugust  2013 . 
 
[signed]  
 
The Vice -President of the ECB  
Vítor CONSTÂNCIO