WRITTEN QUESTION E-0404/99

by Gerardo Fernández-Albor (PPE) to the Commission

(1 March 1999)

Subject: Measures to prevent counterfeiting of the euro

In the run-up to the issuing of euro notes and coins, experts on combating counterfeit money believe that an agency should be set up to coordinate the policies of each country and the surveillance systems operated by issuing banks. Mention has even been made of the possibility of creating a European Central Office which would centralise the data provided by each country on this subject.

Likewise, the authorities in certain countries of the euro zone take the view that it would be desirable to standardise legislation and penalties applying to euro counterfeiters, thus preventing a situation where committing such crimes would be punished less severely in some countries than in others. Otherwise, criminals are likely to set up clandestine printshops in countries with less stringent laws, even though everyone might be equally affected by the forged currency.

Can the Commission say what its forecasts are and whether it will propose standard legislation for all the countries concerned with a view to combating euro counterfeiting in an effective manner?

Answer given by Mr de Silguy on behalf of the Commission

(27 April 1999)

In preparation of a communication on protection of the euro and combating counterfeiting of 22 July 1998(1) the Commission established in 1997 an expert group on counterfeiting of the euro. This group brings together police from all the Member States, as well as representatives from the European Central Bank (ECB), the European police office (Europol) and the International criminal police organisation (Interpol).

The Commission set out in this communication a strategy to combat counterfeiting which covers a prevention and training policy at Community level, a regulatory framework for co-operation between the relevant national authorities and the Union institutions and between the Union and third countries, the approximation of national laws in relation to the definition of offences, penalties and mutual assistance in judicial matters, and the creation of a standardised system for the exchange of information between authorities responsible for protection against counterfeiting. This would imply a database on strategic and operational data (as opposed to a separate data base on technical characteristics of counterfeits), rules governing the exchange of information, and the obligation of Member States to continuously update the system.

Work is progressing on both the technical and the strategic or operational side. On the technical side, the ECB has already decided to establish a centre for the analysis of counterfeit notes and to maintain a technical database for counterfeits, with an associated communication network. As for coins, Member States have decided and the ECB has accepted to store data of technical nature on counterfeit coins in the data base maintained by the ECB. In addition, it is envisaged to establish a technical and scientific centre for the examination of counterfeit coins.

On the strategic or operational side, the Commission has organised since 1998 expert meetings within its advisory committee for the coordination of fraud prevention and has put forward a detailed evaluation of the need for action in the form of two working documents. Taking into account the work already undertaken by the experts, the Council is likely to extend shortly the mandate of Europol to the fight against counterfeiting of banknotes and coins.

The Commission's immediate priority is to examine in close co-operation with the ECB whether there is a need to establish by legislation an obligation on national central banks and Member States to contribute to the exchange of information and to co-operate in the field of counterfeiting. The Commission agrees that international co-operation is essential in order to combat counterfeiting efficiently.

(1) COM(98) 474 final.