Opinion of the European Central Bank of 30 August 2001 at the request of the French Ministry of Economy, Finance and Industry on a draft decree relating to the marking of banknotes denominated in francs (CON/2001/20)
Date: 2001-08-30
Institutions: European Central Bank
Subjects: France, monetary integration, monetary policy, money, national law

EN

OPINION OF THE EUROPEAN CENTRAL BANK

of 30 August 2001

at the request of the French Ministry of Economy, Finance and Industry on a draft decree

relating to the marking of banknotes denominated in francs

(CON/2001/20)

1. 

On  6  August  2001  the  European  Central  Bank  (ECB)  received  a  request  from  the  French

Ministry  of  Economy,  Finance  and  Industry  for  an  opinion  on  a  draft  decree  (hereinafter

referred to as the “draft decree”) concerning the marking by perforation of certain banknotes in

francs  that  will  be  returned  to  credit  institutions,  the  Post  Office  and  the  accountants  of  the

Treasury for exchange operations between francs and euro between 1 January and 30 June 2002.

2. 

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

establishing the European Community (hereinafter referred to as the “Treaty”), the first indent

of Article 4(a) of the Protocol on the Statute of the European System of Central Banks and of

the European Central Bank and the first indent 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,  since  the  draft  decree  relates  to  currency  matters.  In

accordance  with  the  first  sentence  of  Article  17.5  of  the  Rules  of  Procedure  of  the  European
Central Bank2, this opinion has been adopted by the Governing Council of the ECB. 

3. 

The  draft  decree  provides  for the  perforation  of  banknotes  denominated  in francs  that  will  be

returned  to  credit  institutions  empowered  to  perform  a  banking  service  in  France,  the  Post

Office  and  the  accountants  of  the  Treasury  for  exchange  operations  between  francs  and  euro

between  1  January  and  30  June  2002.  All  banknotes,  except  the  20  francs  banknote,  may  be
subject to the perforation3. The draft decree sets forth the manner in which the banknotes are to
be  perforated4  and  provides  that  only  credit  institutions  empowered  to  perform  a  banking

1

2
3 
4 

OJ L 189, 3.7.1998, p. 42.
OJ L 125, 19.5.1999, p. 34.
Annex 1 to the draft decree.
Annex 2 to the draft decree.

                                                     
service  in  France,  the  Post  Office  and  the  Treasury’s  accountants  may  perform  such
perforation5.

4. 

Pursuant to the draft decree, the perforated banknotes and banknotes in francs whose condition

prevents verification of the possible presence of this perforation shall be neither exchangeable
nor redeemable6. However, perforated banknotes may be accepted by the Banque de France or

the Institut d’émission des départements d’outre-mer, acting for and on behalf of the Banque de

France, when deposited at the counters of the Banque de France or the Institut d’émission des

départements d’outre-mer  by  a  credit  institution,  the  financial  services  of  the  Post  Office,  the
accountants  of  the  Treasury  or  a  company  transporting  funds  to  be  credited  to  its  account7.

Furthermore, the draft decree provides that, except in the cases foreseen in Articles 1 and 2 of

the  draft  decree,  accepting,  holding  or  using  a  perforated  banknote  or  a  banknote  in  francs
whose  condition  prevents  verification  of  this  perforation  shall  be  sanctioned  by  a  fine8.  The

draft decree also provides that the object that has been used or was intended to be used for the

offence or that is the product thereof, and the perforated banknotes or banknotes in francs whose
condition prevents verification of the possible presence of this perforation, shall be confiscated9.

Furthermore, legal persons may be held liable under criminal law for the offence of accepting,
holding or using the above-mentioned banknotes10.

5. 

As  stated  in  paragraph  13  of  Opinion  CON/2001/15  of  26  June  2001  at  the  request  of  the

Nationale  Bank  van  België/Banque  Nationale  de  Belgique  on  a  draft  law  relating  to  the  cash

changeover to the euro in Belgium, the ECB considers that national measures may be taken in

the context of the withdrawal of national banknotes (including the marking or neutralisation of

such  banknotes).  Indeed,  national  measures  taken  to  facilitate  the  withdrawal  of  national

banknotes are envisaged and provided for in Article 15 of Council Regulation (EC) No 974/98
of 3 May 1998 on the introduction of the euro11.

6. 

The  ECB  understands  that  the  perforation  of  certain  banknotes  denominated  in  francs,  the

prohibition (except for credit institutions, the Post Office and the accountants of the Treasury in

the cases laid down in Articles 1 and 2 of the draft decree) against accepting, holding and using

the perforated banknotes and banknotes in francs whose condition prevents verification of the

possible  presence  of  this  perforation,  and  the  confiscation  described  above  constitute  specific

security measures, which should facilitate the smooth withdrawal of banknotes denominated in

francs. Insofar as the proposed measures facilitate the withdrawal of such banknotes, the ECB

welcomes the draft decree. 

5 
6 
7 
8 
9 
10 
11

Draft decree, Article 2.
Draft decree, Article 1.
Ibidem.
Draft decree, Article 3.
Ibidem.
Ibidem.
OJ L 139, 11.5.1998, p. 1.

2

                                                     
7. 

Based on the assumption that the perforated banknotes should be treated as mutilated banknotes,

the fact that the perforated banknotes may only be exchanged at the counters of the Banque de

France or the Institut d’émission des départements d’outre-mer does not infringe Article 52 of

the  Protocol  on  the  Statute  of  the  European  System  of  Central  Banks  and  of  the  European

Central  Bank,  which  requires  national  central  banks  to  exchange  at  par  banknotes  of  all

participating Member States.

8. 

The ECB understands that the perforated banknotes and banknotes denominated in francs whose

condition  prevents  verification  of  the  possible  presence  of  the  perforation  will  continue  to  be

legal tender during the dual circulation period but their use and circulation will be restricted by

the draft decree. In this context,  the  ECB  notes that  the  Code  Monétaire  et  Financier  already

provides  for  other  restrictions  on  the  use  of  banknotes  which  are  legal  tender  for  payments

above a certain amount and in the context of certain transactions. 

9. 

The ECB confirms that it has no objection to the publication of this opinion at the discretion of

the competent national authority.

Done at Frankfurt am Main on 30 August 2001.

The President of the ECB

[signed]

Willem F. DUISENBERG

3