Opinion of the European Central Bank of 25 April 2002 at the request of the Spanish Secretary of State for the Economy, Energy and Small and Medium-Sized Enterprises on a draft Royal Decree on the arrangements for the payment of the Banco de España's profits to the Treasury (CON/2002/14)
Date: 2002-04-25
Institutions: European Central Bank
Subjects: Spain, Treasury, central bank, national law, payment, profit

EN

OPINION OF THE EUROPEAN CENTRAL BANK

of 25 April 2002

at the request of the Spanish Secretary of State for the Economy, Energy and Small and

Medium-Sized Enterprises on a draft Royal Decree on the arrangements for the payment of the

Banco de España’s profits to the Treasury 

(CON/2002/14)

1.

On  26  March  2002  the  European  Central  Bank  (ECB)  received  a  request  from  the  Spanish

Secretary  of  State  for  the  Economy,  Energy  and  Small  and  Medium-Sized  Enterprises  for  an

opinion on a draft Royal Decree on the arrangements for the payment of the Banco de España’s

profits to the Treasury. 

2. 

The  ECB’s  competence  to  deliver  an  opinion  is  based  on  the  third  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.  In  accordance  with  the  first

sentence of Article 17.5 of the Rules of Procedure of the European Central Bank, the Governing

Council of the ECB has adopted this opinion.

3. 

The  draft  Royal  Decree  is  based  on  the  power  granted  by  the  second  final  provision  of

Law 12/1998 of 28 April amending the Act of Autonomy of the Banco de España to determine,

by  way  of  governmental  regulation,  the  regime  for  the  payment  of  the  Banco  de  España’s

profits to the Treasury. 

4. 

The draft Royal Decree would replace Royal Decree 1746/1999 of 19 November, which applied

until  the  financial  year  2001.  The  provisional  nature  of  Royal  Decree  1746/1999  was  a

precaution, and until such a time as the ECB would adopt a new decision on the allocation of

monetary  income  under  Article  32  of  the  Statute  of  the  ESCB  and  of  the  ECB  (hereinafter

referred  to  as  the  'Statute')  after  the  end  of  the  application  of  Decision  ECB/2000/19  of

3 November 1998 as amended by Decision of 14 December 2000 on the allocation of monetary

income of the national central banks of participating Member States and losses of the ECB for

the financial years 1999 to 20012.

1

2

OJ L 189, 3.7.1998, p. 42.

OJ L 336, 30.12.2000, p. 119.

                                                          
Royal  Decree  1746/1999  was  subject  to  consultation  with  the  ECB.  The  ECB  formulated  its

opinion on 28 October 19993. Royal Decree 1746/1999  laid  down  the  following  schedule  for

payment to the Treasury of profits generated and accounted for by the Banco de España:

– 

in November each year, 70% of the profits accrued and recorded until 30 September of the

same financial year,

– 

in February each year, 90% of the profits accrued and recorded until 31 December of the

preceding financial year, discounting the instalment paid in November,

– 

the remaining profits, following the approval  of the accounts of  the  Banco  de  España  for

the financial year by the Government.

5. 

The  draft  Royal  Decree  would  extend  the  application  of  the  rules  to  the  next  three  financial

years  (2002,  2003,  and  2004)  on  the  basis  of  experience  that  is  believed  to  demonstrate  the

advisability of maintaining the quoted percentages and schedule. 

6. 

The ECB already had an opportunity to comment on the above-mentioned rules in the context

of  ECB  Opinion  CON/99/16.  In  that  instance,  the  ECB  found  that  such  rules  protect  the

financial independence of the Banco de España, since they regulate in detail the schedule and

amount  of  the  advance  payments,  without  affording  any  ad  hoc  discretion  to  the  political

authorities. This assessment also applies to the draft Royal Decree extending the application of

the rules already examined by the ECB.

7.  While  the  draft  Royal  Decree  would  extend  the  rules  already  in  place  by  virtue  of  Royal

Decree 1746/1999, these rules need now to be examined in the light of the new regime for the

allocation of monetary income of national central banks (NCBs) under Article 32 of the Statute.

Decision ECB/2001/16 of 6 December 2001 governs the allocation of monetary income of the

national  central  banks  of  participating  Member  States  from  the  financial  year  20024.  This

Decision must be read in conjunction with Decision ECB/2001/15 of 6 December 2001 on the

issue of  euro  banknotes5.  Under  Article  2  of  Decision  ECB/2001/15,  the  ECB  and  the  NCBs

shall issue euro banknotes.

8. 

The remuneration of intra-Eurosystem balances on euro banknotes in circulation resulting from

the application of Decision ECB/2001/15 is settled on a quarterly basis, except in 2002 when it

will  be  settled  at  the  end  of  the  year.  The  allocation  of  each  NCB’s  monetary  income  takes

place  at  the  end  of  the  financial  year.  Under  the  draft  Royal  Decree,  the  Banco  de  España

would pay to the Treasury 70% of the profits accrued and recorded until 30 September of that

year;  that  is,  until  the  end  of  the  third  quarter.  On  the  first  working  day  of  the  following

February,  the  Banco  de  España  would  pay  to  the  Treasury  90%  of  the  profits  accrued  and

3 
4 
5 

CON/99/16.

OJ L 337, 20.12.2001, p. 55.

OJ L 337, 20.12.2001, p. 52.

2

                                                          
recorded  until  31  December  of  the  previous  year;  that  is,  at  the  end  of  the  financial  year.

Therefore, the proposed measures would not conflict with the current ECB regime for the issue

of euro banknotes and the allocation of monetary income of NCBs of the participating Member

States.

9. 

The ECB notes that the proposed period of three financial years for the application of the draft

Royal  Decree  is  considered  to  be  necessary  in  order  to  evaluate  the  application  of  Decisions

ECB/2001/15 and ECB/2001/16.

10.  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 25 April 2002.

The President of the ECB

[signed]

Willem F. DUISENBERG

3