Opinion of the European Central Bank of 20 April 2001 at the request of the Euro Changeover Board of Ireland on a draft legislative proposal on certain provisions included in a draft Euro Changeover (Amounts) Bill, 2001 (CON/2001/5)
Date: 2001-04-20
Institutions: European Central Bank
Subjects: Greece, Ireland, banking, central bank, euro, money, payment system, public holiday, rule of law

OPINION OF THE EUROPEAN CENTRAL BANK

of 20 April 2001

at the request of the Euro Changeover Board of Ireland on a draft legislative proposal on

certain provisions included in a draft Euro Changeover (Amounts) Bill, 2001

(CON/2001/5)

1.

On  27  March  2001  the  European  Central  Bank  (ECB)  received  a  request  from  the  Euro

Changeover Board of Ireland for an ECB opinion on two provisions  included  in  a  draft  Euro

Changeover (Amounts) Bill, 2001.

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  European  Central  Bank  by
national authorities regarding draft legislative provisions1, as the legislative proposal contains
provisions  concerning  currency  matters,  means  of  payment  and  payment  and  settlement

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

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

ECB.

3. 

The  first  provision  in  the  draft  Bill  on  which  the  ECB  has  been  consulted  concerns

Section 135 of the Central Bank Act, 1989, which has been amended to provide, inter alia, that

no  person  shall  be  compellable  to  make  any  payment  or  do  any  act  on  a  day  on  which  the

TARGET system is closed where that person would not be so compellable on Christmas Day or

Good Friday by virtue of any rule of law relating to banking. ‘A day on which the TARGET

system is closed’ has been defined to mean such  day  or  days  as  the  ECB  Governing  Council

from time to time decide to be  a  day  or  days  on  which  the  Trans-European  Automated  Real-

time  Gross  settlement  Express  Transfer  system  will  be  closed.  The  ECB  welcomes  this

clarification under Irish law which makes provision for the inability of a party to make payment

or conduct banking transactions on days on which the TARGET system is closed. The flexible

approach  to  the  definition  of  a  TARGET  closing  day  is  also  consistent  with  the  provisions

regarding operating days contained in Article 3(d)(1) of the ECB Guideline of 3 October 2000

on  a  Trans-European  Automated  Real-time  Gross  settlement  Express  Transfer  system

1

OJ L 189, 3.7.1998, p. 42-43.

                                                          
(ECB/2000/9). The ECB notes, however, one drafting point: it is assumed that there is in fact
an established rule of law relating to banking in Ireland, perhaps dating back to the 19th century

or arising at common law, whereby a person would not be compellable to make payments on

Christmas  Day  or  Good  Friday,  but  the  ECB  is  in  fact  unaware  of  the  precise  source  of  any

such rule of law. 

4. 

The  second  provision  in  the  draft  Bill  on  which  the  ECB  has  been  consulted  concerns

Section 5 of  the  Economic  and  Monetary  Union  Act,  1998,  which  has  been  amended  to  re-

define  the  ‘participating  Member  States’  (i.e.,  Member  States  having  adopted  the  euro)  to

include Greece and any other EC  Member  State  adopting  the  single  currency  as  its  currency.

The ECB welcomes this amendment, which will ensure that certain provisions of the 1998 Act

relating to euro-denominated coins issued by the participating Member States will be applicable

to coins issued by Greece and such other Member States.

5. 

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 20 April 2001.

The President of the ECB

[signed]

Willem F. DUISENBERG

2