Opinion of the European Central Bank of 30 August 2001 at the request of the Bank of Greece on a draft law presented to the Greek Parliament by the Minister of National Economy and Finance with respect to the circulation of euro banknotes and coins and other related provisions (CON/2001/21)
Date: 2001-08-30
Institutions: European Central Bank
Subjects: Greece, euro, issuing of currency, monetary integration, money, national law

EN

OPINION OF THE EUROPEAN CENTRAL BANK

of 30 August 2001

at the request of the Bank of Greece on a draft law presented to the Greek Parliament by

the Minister of National Economy and Finance with respect to the circulation of euro

banknotes and coins and other related provisions

(CON/2001/21)

1. 

On  1 August 2001  the  European  Central  Bank  (ECB)  received  a  request  from  the  Bank  of

Greece for an opinion on a draft law with respect to the circulation of euro banknotes and coins

and other related provisions (hereinafter referred to as the “Draft Act”).

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”) and 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  since  the  Draft  Act  deals  with  currency  matters  and  means  of  payment.  Article

11(2) of the Council framework Decision of 29 May 2000 on increasing protection by criminal

penalties and other sanctions against counterfeiting in connection with the introduction of the

euro  (hereinafter  referred  to  as  the  “framework  Decision”)2  provides  the  ECB  with  the

possibility  to  contribute  in  relation  to  the  provisions  transposing  into  national  law  the

obligations imposed on Member States under the framework Decision. In accordance with the

first  sentence  of  Article  17.5  of  the  Rules  of  Procedure  of  the  European  Central  Bank3,  this

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

1

2

3

OJ L 189, 3.7.1998, p. 42.
OJ L 140, 14.6.2000, p. 1.
OJ L 125, 19.5.1999, p. 34.

                                                     
3. 

In  line  with  Article  15  of  Council  Regulation  (EC)  No 974/98  of  3  May  1998  on  the

introduction  of  the  euro4,  Article  1  of  the  Draft  Act  introduces  a  parallel  circulation  period,

which will be limited to the period running from 1 January 2002 to 28 February 2002. 

4. 

The  Draft  Act  provides  that  the  right  to  issue  coins  is  vested  in  the  Greek  State  and  that

approval by the ECB is necessary for issuance. A reference to Article 106(2) of the Treaty is

made  in  connection  with  this  issuance  and  also  in  respect  of  commemorative  coins.  Features

and designs of the national side of the first series of coins, the procedure to select the designs of

the  national  side  for  future  series  and  the  production  of  coins,  as  well  as  the  withdrawal  of

coins,  are  stipulated  in  the  Draft  Act.  The  Bank  of  Greece,  according  to  the  national  cash

changeover scenario, shall have the obligation to exchange banknotes denominated in drachmae

for euro until 1 March 2012, while the Bank of Greece and the Internal Revenue Offices shall

exchange coins denominated in drachmae for euro until 1 March 2004. 

5.  Member  States  are  free  to  design  the  national  sides  of  euro  coins  provided  that  12  stars  are

displayed  on  such  national  side5.  For  the  sake  of  legal  clarity,  the  ECB  appreciates  that

appropriate wording regarding this condition applying to the national sides has been introduced

in Article 3(4) of the Draft Act.

6. 

The  Draft  Act  prohibits  frontloading  and  sub-frontloading  beyond  the  conditions  set  out  in

Article  7(2)  of  the  Draft  Act  and  pursuant  to  the  provisions  of  Guideline  ECB/2001/1  of

10 January 2001 adopting certain provisions on the 2002 cash changeover6. The ECB welcomes

that the eligible institutions for frontloading are stipulated in the Draft Act. The conditions for

sub-frontloading  are  broadly  laid  down,  while  the  general  public  may  be  provided  with  euro

coins in the form of “starter kits” from 17 December 2001. In addition to the credit institutions,

the  Bank  of  Greece,  and  other  institutions  designated  by  the  Minister  of  Finance  following  a

proposal  by  the  Bank  of  Greece  may  sub-frontload  the  general  public  with  euro  coins  in  the

form  of  “starter  kits”,  from  the  same  date.  By  a  similar  decision,  the  Bank  of  Greece  and

eligible  credit  institutions  may  be  authorised  to  supply  retailers  with  euro  coins.  The  ECB

welcomes that the Bank of Greece may modify the terms and conditions for frontloading and

sub-frontloading  in  accordance  with  the  relevant  guidelines  and  decisions  of  the  European

Central  Bank.  In  Article  7(3),  the  Draft  Act  makes  provision  for  adequate  collateral  for

frontloading. 

OJ L 139, 11.5.1998, p 1.

Directorate-General for Economic and Financial Affairs, European Commission, Euro coins, From design

4

5

to circulation, May 2000, p. 8.

6

OJ L 55, 24.2.2001, p. 80.

2

                                                     
7. 

Furthermore, the ECB welcomes the provision in Article 7(5) specifying the parameters for the

imposition of administrative sanctions by the Bank of Greece on credit institutions in the case

of violation of their obligations under frontloading agreements. Following harmonisation in the

respective field with other participating NCBs, the administrative sanction has been set at the

level of 10 % of the amount of the violation or, if such amount cannot be determined, as a lump

sum between 10,000 and up to one million euro. 

8. 

From  the  publication  of  the  Draft  Act  until  31 December 2001,  Article  7(6)  of  the  Draft  Act

prohibits the production, issuance, distribution or supply of collectors’ coins, medals or tokens

bearing the words “euro” or “lepta/cent” or designs, similar to those appearing on the common

sides of the euro coins. 

9. 

The  ECB  welcomes  the  provision  of  Article  7(4)  of  the  Draft  Act  that  frontloading  and  sub-

frontloading agreements in respect of euro banknotes and coins shall not be subject to any tax

or levy or any other fiscal burden, direct or indirect. This underlines the principle that the cash

changeover should have no impact on costs.

10.  Article  3(2)  of  the  framework  Decision  requires  each  Member  State  to  take  the  necessary

measures to ensure that participating in and instigating the conduct referred to in Article 3(1) of

the framework Decision, and attempting the conduct referred to in points (a) to (c) of Article 3,

paragraph 1 of the framework Decision, are punishable. The ECB notes that apart from specific

provisions of the Draft Act, provisions of general Greek criminal law are also relevant in so far

as  they  provide  that  all  forms  of  participation  to  the  commission  of  the  said  offences  are

punishable. In that regard, specific provisions of the Penal Code are to be amended by means of

Article 8 of the Draft Act, which transposes into Greek law the provisions of Articles 3 and 4 of

the framework Decision. Furthermore, legislation regarding the protection of national currency

continues  to  apply  according  to  Article  8(6)  of  the  Draft  Act.  With  regard  to  the  offences  of

instigating, participating in and attempting the conduct referred to in Article 3(1) points (a) to

(c)  of  the  framework  Decision,  the  present  wording  of  the  Draft  Act  does  not  address  these

issues. It is understood that these offences should be punishable under the general provisions of

Greek criminal law (Articles 42 to 49 of the Greek Penal Code). It is noted that the minimum

punishment  of  incarceration  will  be  augmented  for  all  offences  covered  by  the  framework

Decision.

11.  The Draft Act provides for administrative sanctions imposed on legal entities in the case that

individuals with a power of representation of that legal person, or authority to take decisions on

behalf  of  it,  or  authority  to  exercise  control  within  it,  pursue  activities  described  in  the

provisions  of  Article  8  of  the  Draft  Act  implementing  Articles  3  and  4  of  the  framework

Decision.  

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12.  The ECB welcomes that the Draft Act provides that conduct referred to in Articles 3 and 4 of

the framework Decision is punishable if it relates to banknotes and coins in national currency

units of Member States which are accepted for exchange by competent agencies. 

13.  The ECB further notes that the Draft Act does not include any provisions allowing Greece to

comply with its obligations under Articles 4 and 5 of Council Regulation (EC) No 1338/2001 of

28 June 2001  laying  down  the  measures  necessary  for  the  protection  of  the  euro  against

counterfeiting7.  It  is  understood  that  the  Greek  authorities  are  bound  to  take  the  necessary

measures  to  comply  with  the  obligations  under  the  above  Regulation  prior  to  its  entry  into

force.

14.  The  ECB  welcomes  that  Article  7  of  the  Draft  Act  protects  the  frontloading  and

subfrontloading  operations  in  Greece  by  penalising  the  use  of  euro  banknotes  as  a  means  of

payment before 1 January 2002. 

15.  The  ECB  takes  note  of  Article  8(7)  of  the  Draft  Act  empowering  the  Government,  by  joint

decision  of  the  competent  Ministers,  to  adjust  financial  amounts  in  drachmae,  such  as  fines,

fees,  pecuniary  penalties,  charges,  levies  etc.,  after  rounding  into  euro  from  1 January 2002.

With  regard  to  a  number  of  legislative  provisions,  a  smoothing  of  rounded  amounts  is

considered  necessary  for  greater  legal  certainty  and  transparency.  In  this  context,  the  ECB

should  like  to  recall  the  joint  statement  by  the  members  of  the  Eurogroup  of  4  June  2001,

whereby,  overall,  conversion  into  euro  of  all  prices,  charges  and  fees  administered  by

governments will be price neutral or smoothed in favour of the consumer.

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

the consulting authority.

Done at Frankfurt am Main on 30 August 2001.

The President of the ECB

[signed]

Willem F. DUISENBERG

7

OJ L 181, 4.7.2001, p. 6.

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