Opinion of the European Central Bank of 24 January 2002 at the request of the French Ministry of the Economy, Finance and Industry on two draft decrees concerning the abrogation of the legal tender status of banknotes and coins denominated in French francs (CON/2002/6)
Date: 2002-01-24
Institutions: European Central Bank
Subjects: France, issuing of currency, monetary integration, money, national law

EN

OPINION OF THE EUROPEAN CENTRAL BANK

of 24 January 2002

at the request of the French Ministry of the Economy, Finance and Industry

on two draft decrees concerning the abrogation of the legal tender status

of banknotes and coins denominated in French francs 

(CON/2002/6)

1. 

On 27 December 2001, the European Central Bank (ECB) received a request from the French

Ministry  of  the  Economy,  Finance  and  Industry  for  an  ECB  opinion  on  two  draft  decrees

(hereinafter  referred  to  as  the  “draft  decrees”)  concerning  the  abrogation  of  the  legal  tender
status of banknotes and coins denominated in French francs1. 

2. 

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

establishing  the  European  Community,  the  first  indent  of  Article  4(a)  of  the  Statute  of  the

European System of Central Banks and of the European Central Bank 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 provisions2, since

the two draft decrees relate to currency matters and means of payment. 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.

3. 

The draft decrees provide for the abrogation of the legal tender  status  of  banknotes  and  coins

denominated in French francs. The first draft decree concerns the abrogation of the legal tender

status of banknotes issued by the Banque de France. The second concerns the abrogation of the

legal tender status of coins. According to the information provided by the French authorities, the

abrogation  of  the  legal  tender  status  of  banknotes  will  be  done  by  means  of  a  simple  decree

based on Article L.122-1 of the French Financial and Monetary Code. Once the Council of State

has provided its opinion, a decree of the Council of Ministers will be adopted to establish the

principle  of the  abrogation  of  the  legal  tender  status  of  coins.  A  subsequent  “arrêté”,  adopted

and published simultaneously to the decree on banknotes, will set out the date and modalities of

such abrogation as well as the list of types of coins in French francs the legal tender status of

1 

2
3

"Draft decree concerning the abrogation of the legal tender status of banknotes denominated in francs of the Banque
de France" and "Draft decree concerning the abrogation of the legal tender status of coins denominated in francs".
OJ L 189, 3.7.1998, p. 42.
OJ L 125, 19.5.1999, p 34.

                                                     
which will be abrogated. The use of different procedures for banknotes and coins is justified by

the different legal frameworks applicable to banknotes and coins under French law. The current

date  envisaged  for  the  abrogation  of  the  legal  tender  status  of  banknotes  and  coins  under  the

scenario  agreed  by  the  National  Euro  Committee  ("Comité  National  de  l'Euro")  is

18 February 2002.  Article  15(2)  of  Council  Regulation  EC  No  974/98  of  3  May  1998  on  the

introduction of the euro provides in this respect that "Each participating Member State may, for

a period of up to six months after the end of the transitional period, lay down rules for the use of

the banknotes and coins denominated in its national currency unit […] and take any measures
necessary  to  facilitate  their  withdrawal"4.  The  ECB  understands  that,  in  line  with  the

recommendation  of  the  National  Euro  Committee,  a  certain  degree  of  flexibility  should  be

ensured in the process of the withdrawal of banknotes and coins denominated in French francs,

and that, as a precautionary measure, the French authorities reserve the possibility of postponing

the date of abrogation in the case of unanticipated exceptional events.  However, the same date

will in any case apply to the abrogation of the legal tender status of both banknotes and coins.

4. 

According  to  the  draft  decrees  and  in  line  with  Article  16  of  Regulation  EC  No  974/98,

banknotes denominated in French francs will be exchanged, subject to the provisions of Decree
No 2001-933  of  12  October  20015,  at  the  offices  of  the  Banque  de  France,  the  Institut

d'Emission  des  Départements  d'Outre-Mer  and  the  Treasury  until  17 February  2012.  Coins

denominated in French francs will continue  to  be exchanged until 17 February  2005.  Specific

provisions will apply to the exchange of collector coins, as listed in Annex 2 of the second draft

decree.

5. 

The draft decrees (in their respective Articles 4 and 3) expressly specify that they apply to the

French  territorial  community  of  Mayotte.  Although  Council  Decision  1999/95/EC  of

31 December 1998 concerning the monetary arrangements in the French territorial communities
of Saint-Pierre-et-Miquelon and Mayotte6 treats these two communities on an equal footing, the

ECB understands, on the basis of information received from the French authorities, that unlike

Mayotte, Saint-Pierre-et-Miquelon does not need to be expressly mentioned as this community

would in any case be covered by the draft decrees. 

4

5 

6 

OJ L 139, 11.5.1998, p. 1.
See  in  this  respect  the  ECB  opinion  of  30  August  2001  on  a  draft  decree  relating  to  the  marking  of  banknotes
denominated in francs (CON/2001/20).
OJ L 30, 4.2.1999, p. 29.

2

                                                     
  
6. 

The  ECB  confirms  that  it  has  no  objection  to  the  competent  national  authorities  making  this

opinion publicly available at their discretion.

Done at Frankfurt am Main on 24 January 2002.

The President of the ECB

[signed]

Willem F. DUISENBERG

3