Opinion of the European Central Bank of 28 August 2000 at the request of the German Federal Ministry of Finance on a draft legislative proposal for the issue of a 1 DM gold coin and the establishment of a ‘Monetary Stability’ Foundation (CON/00/17)
Date: 2000-08-28
Institutions: European Central Bank
Subjects: Germany, gold, issuing of currency, money, national law

OPINION OF THE EUROPEAN CENTRAL BANK

of 28 August 2000

at the request of the German Federal Ministry of Finance

on a draft legislative proposal for the issue of a 1 DM gold coin and the establishment of a

‘Monetary Stability’ Foundation

(CON/00/17)

1.  On  31  July  2000  the  European  Central  Bank  (ECB)  received  a  request  from  the  German  Federal

Ministry of Finance for an ECB opinion on a draft legislative proposal for the issue of a 1 DM gold

coin and the establishment of a ‘Monetary Stability’ Foundation.

2.  The ECB’s competence to deliver an opinion is based on Article 2 of Council Decision 98/415/EC of

29 June  1998  on  the  consultation  of  the  ECB  by  national  authorities  regarding  draft  legislative

provisions1, as the legislative proposal contains provisions concerning currency matters and means of

payment. In accordance with the first sentence of Article 17.5 of the Rules of Procedure of the ECB,

this ECB opinion has been adopted by the Governing Council of the ECB. 

3.  According  to  paragraph  1  of  the  draft  legislative  proposal,  the  Deutsche  Bundesbank  shall  be

authorised to issue a gold coin for 1 DM in its own name in the year 2001 in commemoration of the

Deutsche Mark, with a circulation of up to one million pieces. The ECB takes note of the fact that the

draft legislative proposal does not impose an obligation on the Deutsche Bundesbank to make use of

such right. 

4.  Paragraph 3 of the draft legislative proposal states that the 1 DM gold coin shall be legal tender until

the end of 31 December 2001. 

As the 1 DM gold coins will be attributed the status of legal tender, the ECB recalls that the issue will

form part of the total  volume  of coins  to  be issued in  accordance  with  the  first sentence  of  Article

106(2) of the Treaty establishing the European Community, whereby such total volume requires the

approval of the ECB. 

1  OJ L189, 3.7.1998, p. 42-43.

                                                     
5.  The  ECB  takes  note  that,  according  to  paragraph  5(3)  of  the  draft  legislative  proposal,  the  gold

required  to  mint  the  1  DM  gold  coins  will  be  taken  from  the  Bundesbank’s  gold  reserves.    As

explained in the official statement of reasons attached to the draft legislative proposal, the Deutsche

Bundesbank will use an estimated 12 tonnes of gold for the production of one million coin blanks; it

is  further  stated  that  this  is  less  than  0.4%  of  the  gold  reserves  of  the  Deutsche  Bundesbank.

Paragraph  7  of  the  draft  legislative  proposal  states  that  the  issue  price  for  the  gold  coins  will  be

determined by the Deutsche Bundesbank depending on the respective market rate for gold. 

In this context, the ECB stresses the importance of the declaration contained in the official statement

of  reasons  to  paragraph  5  of  the  draft  legislative  proposal  according  to  which  the  Deutsche

Bundesbank will seek to obtain approval from the ECB, if required, pursuant to Article 31.2 of the

Statute of the European System of Central Banks and of the European Central Bank for the sale of

central bank gold.

6.  The ECB holds the view that the minting and sale of gold coins is not in contradiction with the central

bank  gold  agreement  of  26  September  1999  between  the  ECB  and  the  central  banks  of  Austria,

Belgium,  Finland,  France,  Germany,  Ireland,  Italy,  Luxembourg,  the  Netherlands,  Portugal,  Spain,

Sweden,  Switzerland  and  the  United  Kingdom.  In  this  context,  note  is  taken  of  the  fact  that  the

Deutsche Bundesbank has already informed the ESCB of its intention to issue the 1 DM gold coins.

7.  Finally,  the  ECB  welcomes  the  intention  of  the  Federal  Government  to  maintain  and  promote  the

public awareness of the importance of monetary stability.

8.  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 August 2000.

The Vice President of the ECB

[signed]

Christian Noyer

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