Opinion of the European Central Bank at the request of the Austrian Ministry of Finance under Article 105 (4), second indent, of the Treaty establishing the European Community and Article 4 (a), second indent, of the Statute of the European System of Central Banks and of the European Central Bank on a draft Federal Act by way of which measures in the field of currency in connection with the issuance of euro banknotes and coins are adopted (Euro Act), and the Austrian Coinage Act of 1988 and the Central Bank Act of 1984 are amended (CON/00/14)
Date: 2000-06-28
Institutions: European Central Bank
Subjects: Austria, euro, issuing of currency, money, national law

OPINION OF THE EUROPEAN CENTRAL BANK

at the request of the Austrian Ministry of Finance under Article 105 (4), second indent, of the

Treaty establishing the European Community and Article 4 (a), second indent, of the Statute of

the European System of Central Banks and of the European Central Bank on a draft Federal

Act by way of which measures in the field of currency in connection with the issuance of euro

banknotes and coins are adopted (Euro Act), and the Austrian Coinage Act of 1988 and the

Central Bank Act of 1984 are amended

CON/00/14

1.

On  24  May  2000  the  European  Central  Bank  (ECB)  received  a  request  from  the  Austrian

Ministry of Finance on a draft Federal Act by way of which measures in the field of currency in

connection  with  the  issuance  of  euro  banknotes  and  coins  are  adopted  (Euro  Act),  and  the

Austrian Coinage Act of 1988 and the Central Bank Act of 1994 are amended.

2.

The ECB’s competence to deliver an opinion is based on Article 2(1) first and third indents, of

Council  Decision  (98/415/EC)  of  29 June  1998  on  the  consultation  of  the  EC  B  by  national

authorities regarding draft legislative provisions, as the legislative proposal contains provisions

concerning currency matters and national central banks. In accordance with Article 17.5, first

sentence,  of  the  Rules  of  Procedure  of  the  ECB,  this  ECB  Opinion  has  been  adopted  by  the

Governing Council of the ECB.

3. 

The  objectives  of  the  draft  Federal  Act  are  to  adapt  national  legal  provisions  in  order  to  (i)

shorten  the  period  of  dual  circulation  of  banknotes  and  coins  to  two  months,  (ii)  arrange  the

changeover  of  the  government  budget  to  euro,  (iii)  amend  national    monetary  law  which

conflicts  with  Community  law  and  repeal  it  where  it  has  become  obsolete,  (iv)  establish  the

legal basis for the issuance of euro and cent coins, and (v) adopt additional banknote protection

in the Central Bank Act.

4. 

The ECB notes that according to the draft Federal Act the period of dual circulation of euro and

Austrian schilling banknotes and coins ends at midnight on 28 February 2002 by withdrawing

the legal tender status of Austrian schilling banknotes and coins from that date. This provision

is in accordance with the joint Declaration of the Council  of  the  European  Union  concerning

the  introduction  of  euro  banknotes  and  coins  of  8  November  1999,  according  to  which  the

transitional period of dual circulation of euro banknotes and coins and national banknotes and

coins of the individual EU Member States is to last between four weeks and two months.

5. 

The ECB welcomes that those provisions in Austrian legislation which have become obsolete

are explicitly repealed by the draft Federal Act.

6. 

The  ECB  notes  that  the  description  of  the  legal  tender  status  of  euro  banknotes  and  coins  in

Article  I  (1)  (a),  (b)  and  (d)  of  the  draft  Federal  Act  would  not  be  necessary  from  a  legal

perspective. As stated correctly in the explanatory memorandum to the draft Federal Act, euro

banknotes issued by the ECB and the national central banks of the Member States participating

in the euro area, as well as the euro or cent coins issued by these Member States  (competent

mints) intended for circulation and in compliance with the measures laid down by the Council

in accordance with Article 106(2) of the EC Treaty, are already legal tender in Austria by virtue

of the provisions in Articles 10 and 11 of Council Regulation (EC) No 974/98 of 3 May 1998

on the introduction of the euro. Therefore, no standardisation competencies are conferred upon

the national legislator in this respect. Hence,  the  ECB  understands  that  these  provisions  have

only been referred to in the draft Federal Act for reasons of clarity.

7. 

The ECB notes that according to Article II (4) of the draft Federal Act (now Article 9 (2) of the

Austrian Coinage  Act),  the  Münze  Österreich  Aktiengesellschaft  shall,  in  order  to  inform  the

general  public,  immediately  announce  in  the  “Amtsblatt”  (“Official  Journal”)  of  the  “Wiener

Zeitung” issues of euro and cent coins made available by other Member States participating in

Stage Three of Economic and Monetary Union without a derogation which are legal tender in

all the Member States taking part in the third stage of Economic and Monetary Union. For the

same reason, the Münze Österreich Aktiengesellschaft is according to Article II (5) of the draft

Federal  Act  (now  Article  10  (5)  of  the  Austrian  Coinage  Act)  obliged  to  announce  in  the

“Amtsblatt”  (“Official  Journal”)  of  the  “Wiener  Zeitung”  withdrawals  of  coins  in  other

Member States.

8. 

The ECB notes that according to Article II (5) of the draft Federal Act (now Article 10 (4) of

the Austrian Coinage Act), for coins withdrawn from circulation in other Member States, where

only  a  limited  exchange  period  is  provided  for  by  the  national  rules  of  the  issuing  Member

State,  the  obligation  on  the  part  of  the  Münze  Österreich  Aktiengesellschaft  and  the

Oesterreichische Nationalbank to exchange such coins shall cease three weeks before the end of

this  exchange  period.  The  ECB  understands  from  the  explanatory  memorandum  to  the  draft

Federal  Act  that  this  obligation  of  the  Münze  Österreich  Aktiengesellschaft  and  the

Oesterreichische Nationalbank refers to the period during which such coins can be exchanged

in the Member State which has withdrawn the coins after the coins have lost their legal tender

status. The ECB notes that this provision represents the first determining such a period.

9. 

The ECB understands that the provision of the draft Federal Act on legal tender euro and cent

coins  would  probably  not  cover  legal  tender  euro  and  cent  coins  that  could  be  issued  in  the

future by San Marino, the Vatican and Monaco, if a decision was to be taken to entitle these

countries to issue such coins.

10.  The ECB welcomes that according to Article III of the draft Federal Act a provision to enhance

the  legal  protection  of  banknotes  is  incorporated  in  the  Central  Bank  Act,  following  a

recommendation  of  the  ECB  of  7  July  1998  regarding  the  adoption  of  certain  measures  to

enhance the legal protection of euro banknotes and coins (ECB/1998/7). The ECB notes, that

according to this provision, the issuance and use of documents for payment purposes which are

similar to banknotes, denominated in euro and intended for circulation, shall – to the extent that

the  act  does  not  constitute  a  set  of  facts  amounting  to  a  punishable  act  falling  within  the

competence  of  the  courts  and  is  not  subject  to  a  more  severe  punishment  under  other  penal

administrative provisions – be deemed an administrative infringement and shall be punished by

the district administrative authority by the imposition of a fine of up to EUR 3,000. 

11.  The  ECB  confirms  that  it  has  no  objection  to  this  ECB  Opinion  being  made  public  by  the

competent national authorities at their discretion.

Done at Frankfurt am Main on 28 June 2000.

The Vice President of the ECB

[signed]

Christian Noyer