Opinion of the European Central Bank of 19 December 2000 at the request of the Netherlands Ministry of Finance under the second indent of Article 105(4) of the Treaty establishing the European Community and the second indent of Article 4(a) of the Statute of the European System of Central Banks and of the European Central Bank on a draft law enacting the specification of the Dutch system of coinage in connection with the introduction of euro banknotes and coins (Coinage Act 2002) (CON/00/29)
Date: 2000-12-19
Institutions: European Central Bank
Subjects: Ecofin, European System of Central Banks, Netherlands, central bank, commercial bank, counterfeiting, euro, money

OPINION OF THE EUROPEAN CENTRAL BANK

of 19 December 2000

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

of the Treaty establishing the European Community and

the second indent of Article 4(a) of the Statute of the European System of Central Banks and of

the European Central Bank

on a draft law enacting the specification of the Dutch system of coinage in connection with the

introduction of euro banknotes and coins (Coinage Act 2002)

(CON/00/29)

1.

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

Netherlands Ministry of Finance for an opinion on a bill of law amending the Coinage Act of

1987 in connection with the introduction of euro banknotes and coins.

2.

The  ECB’s  competence  to  deliver  an  opinion  is  based  on  the  first  and  second  indents  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

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

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

3. 

The  objective  of  the  draft  law  is  to  complement  Community  law,  as  laid  down  in  Council

Regulation  (EC)  No 974/98  of  3  May  1998  on  the  introduction  of  the  euro2  and  in  Council

Regulation  (EC)  No 975/98  of  3  May  1998  on  denominations  and  technical  specifications  of

euro coins intended for circulation3, as amended by Council Regulation (EC) No 423/1999 of

22 February 19994, with a number of national provisions concerning euro coins, special coins

that will only have legal tender status in the Netherlands, and coins without legal tender status.

1 OJ L 189, 3.7.1998, p. 42.

2 OJ L 139, 11.5.1998, p. 1.

3 OJ L 139, 11.5.1998, p. 6.

4 OJ L 52, 27.2.1999, p. 2.

                                                          
The ECB welcomes Article 6 of the draft law that clearly states that, in accordance with Article

106(2) of the Treaty,  the  aforementioned  coins  will  be  issued  subject  to  the  approval  by  the

ECB of the volume of the issue.

4. 

Guilder coins are only referred to in one article of the draft law. Article 9(2) of the draft law

clarifies  that  the  withdrawal  and  exchange  of  guilder  coins  (and  sub-denominations  thereof)

will be decided by ministerial regulation. The Explanatory Memorandum notes that the public

will  be  able  to  exchange  these  coins  (and  guilder  banknotes)  for  euro  coins  (respectively

banknotes) up to five years after 1 January 2002. The intention of the Dutch authorities is that

until 1 January 2003, such exchange will be possible at commercial banks. This exchange will

be  free  of  charge  until  1 April 2002.  Subsequently  after  1  January  2003  and  until

1 January 2007,  exchange  of  guilder  coins  will  only  be  possible  at  the  branch  offices  of  De

Nederlandsche  Bank.  The  Explanatory  Memorandum  also  notes  that  guilder  coins  will  lose

their  legal  tender  status  at  midnight  on  28 January  2002.  This  is  in  line  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. 

Article 3 of the draft law specifies that the national side of euro coins minted in the Netherlands

will be fixed by royal decree. Article 4 adds the provision that the technical specifications and

denominations of special coins with legal tender status (collector coins) will be determined by

Order  in  Council.  In  accordance  with  the  conclusions  of  the  Ecofin  Council  meeting  of

31 January 2000,  the  Explanatory  Memorandum  notes  that  the  denominations,  technical

specifications  and  design  of  these  collector  coins  will  differ  from  that  of  euro  coins.  The

withdrawal  of  special  coins  will  be  decided  by  ministerial  regulation.  It  is  noted  that  further

measures might be necessary in this respect after the adoption of the draft Council Regulation

which  is  currently  being  prepared  on  the  protection  of  euro  banknotes  and  coins  against

counterfeiting.

6. 

Article 5 of the draft law contains the technical specifications of coins that do not have legal

tender  status.  It  is  noted  that  Article  8  of  the  draft  law  empowers  the  Minister  of  Finance  to

appoint a special centre for the assessment and registration of counterfeit euro coins. This will

be done in the context of the Technical Scheme for handling counterfeit euro coins which has

been adopted by the Ecofin Council on 28 February 2000. The Explanatory Memorandum notes

the Minister's intention of appointing the Koninklijke Nederlandse Munt (the Royal Netherlands

Mint) as the Dutch authority for the assessment and registration of counterfeit euro coins. The

Minister can issue rules concerning this assessment.

7. 

Finally,  the  ECB  welcomes  the  fact  that  those  provisions  in  Dutch  legislation  which  have

become obsolete are explicitly repealed by the draft law's Article 10.

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8. 

The ECB confirms that it has no objection to this opinion being made public by the competent

national authorities at their discretion.

Done at Frankfurt am Main on 19 December 2000.

The President of the ECB

[signed]

Willem F. DUISENBERG

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