Opinion of the European Central Bank at the request of the Portuguese Ministry of Finance on a Decree-Law dealing with the production of paper money (CON/99/14)
Date: 1999-09-24
Institutions: European Central Bank
Subjects: Portugal, issuing of currency, money, national law

THE VICE-PRESIDENT

OPINION OF THE EUROPEAN CENTRAL BANK

at the request of the Portuguese Ministry of Finance on a Decree-Law dealing with the

production of paper money

(CON/99/14)

1. 

On 2 September 1999 the European Central Bank (ECB) received a request from the Portuguese

Ministry  of  Finance  for  an  ECB  Opinion  concerning  a  legislative  act  which  endows  to  the

Portuguese  Central  Bank  the  competence  (i)  to  produce  and  print  paper  money  and  other

security documents, (iii) to perform the distribution of banknotes and (iii)  to  develop  services

related to the pursuance of such activities.

2. 

The  ECB’s  competence  to  deliver  an  opinion  is  based  on  Article 105 (4)  of  the  Treaty  and

Article 2 (1),  first, second  and  third  indents,  of  Council  Decision  (EC)  No. 98/415  of  29 June

1998 on the consultation of the European Central Bank by national authorities regarding draft

legislative provisions, as the legislative act deals with currency matters, means of payment and

national central banks. In accordance with Article 17.5, first sentence, of the Rules of Procedure

of the European Central Bank, this opinion has been adopted by the Governing Council of the

ECB. The legislative act was submitted to the ECB in its official original version in Portuguese

accompanied by a courtesy translation in English.

3. 

In general, the adoption of national legislative provisions within the field of competence of the

ECB before opening the consultation procedure laid down in the Council Decision of 29 June

1998  (98/415/EC),  does  not  allow  for  due  consideration  of  the  ECB's  opinion  as  foreseen  in

Article  4  of  such  Council  Decision.  In  the  present  consultation,  the  Portuguese  Government,

adopted  the  legislative  act  submitted  for  consultation  before  initiating  this  consultation

procedure. However, in  the  meanwhile,  it  suspended the  national  legislative  procedure  by  not

publishing  the  legal  act  and  by  consulting  the  ECB.  It  is  understood  that  this  actions  of  the

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Portuguese  Government  would  allow  the  Portuguese  Authorities  to  take  due  consideration  of

the ECB opinion should it gave rise to the need of introducing any changes in the legislative act.

4. 

The  legislative  act  is  intended  to  clarify  the  role  of  the  Portuguese  Central  Bank  (Banco  de

Portugal)  in  the  field  of  production  of  paper  money  taking  into  account  its  integration  in  the

European System of Central Banks (ESCB) and its responsibilities in ensuring the authenticity

and security of monetary circulation. The ECB has no substantive comments to the Decree-Law

submitted for consultation, which is deemed to be in conformity with the relevant provisions of

community law. 

5. 

The  ECB  confirms  that  it  has  no  objections  to  this  ECB  Opinion  being  made  public  by  the

competent national authorities at their discretion.

Done at Frankfurt am Main on 24 September 1999.

The Vice-President of the ECB

(Signed)

C. Noyer