Opinion of the European Central Bank of 10 October 2002 at the request of the Bank of Greece concerning a draft legislative provision on the protection of euro banknotes (CON/2002/26)
Date: 2002-10-10
Institutions: European Central Bank
Subjects: Greece, counterfeiting, euro, money, national law, statistics

EN

OPINION OF THE EUROPEAN CENTRAL BANK

of 10 October 2002

at the request of the Bank of Greece

concerning a draft legislative provision on the protection of euro banknotes 

(CON/2002/26)

1.

On  23 August 2002  the  European  Central  Bank  (ECB)  received  a  request  from  the  Bank  of

Greece  for  an  opinion  concerning  a  draft  legislative  provision  on  the  protection  of  euro

banknotes  (the  ‘draft  legislative  provision’).  On  3  October  2002  the  ECB  received  revised

versions  of  both  the  draft  legislative  provision  and  the  explanatory  report.  This  opinion  takes

into account these revised versions.

2. 

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

the Treaty establishing the European Community 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,  as  the  draft  legislative  provision

deals  with  the  legal  protection  of  euro  banknotes.  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  legislative  provision  provides  for  the  protection  of  euro  banknotes  by  introducing

rules  on  their  reproduction  and  exchange.  Pursuant  to  the  explanatory  report,  the  draft

legislative provision has a twofold aim. Firstly, to fill a gap in the legislation after the repeal of

the  Greek  law  regarding  the  protection  of  banknotes  denominated  in  drachma.  Secondly,  to

adapt  the  Greek  legislation  in  accordance  with  Community  legislation.  In  particular,  the  draft

legislative  provision  reflects  the  rules  laid  down  in  Decision  ECB/2001/7  of  the  European

Central Bank of 30 August 2001 on the denominations, specifications, reproduction, exchange

and withdrawal of euro banknotes3, as amended by Decision ECB/2001/144.

1 
2 
3 
4 

OJ L 189, 3.7.1998, p. 42.
OJ L 125, 19.5.1999, p. 34.
OJ L 233, 31.8.2001, p. 55.
OJ L 5, 9.1.2002, p.26.

                                                     
4. 

Sections 1  to 3  of  the  draft  legislative  provision  ensure,  in  line  with  Article  2(1)  of  Decision

ECB/2001/7, that the ECB’s copyright on euro banknotes shall be protected in Greece without

any time limit and that it shall be exercised in Greece by the Bank of Greece on behalf of the

ECB.  The  ECB  welcomes  these  rules  as  they  follow  Recommendation  ECB/1998/7  of  the

European Central Bank of 7 July 1998 regarding the adoption of certain measures to enhance

the legal protection of euro banknotes and coins5, which provides that Member States ‘should

ensure that banknote designs may legally benefit from copyright protection’6. 

5. 

Section  1 of the  draft legislative  provision establishes that  ‘copyright  [on]  euro  banknotes,  as

such  banknotes  are  specified  in  the  applicable  provisions,  which  belongs  to  the  European

Central  Bank,  shall  be  exercised  within  the  Greek  territory  by  the  Bank  of  Greece  for  the

account of the European Central Bank and its duration shall be subject to no time limits’. The

ECB would suggest clarifying that the ECB can always enforce the copyright on euro banknotes

in the Greek territory on its own. The ECB further welcomes the reference made in the revised

version of the explanatory report to the agreement on the drawing-up of draft designs for euro

banknotes (the ‘Agreement’) concluded between the European Monetary Institute (EMI) and the

author of the selected designs in the Europe-wide competition concerning the design of a series

of euro banknotes organised by the EMI in 1996, from which the ECB’s ownership of copyright

stems.  Pursuant  to  this  Agreement,  the  ECB  holds  copyright  on  the  designs  of  the  euro

banknotes, as mentioned in Article 2(1) of Decision ECB/2001/7. 

6.  With  the  aim  of  ensuring  copyright  protection  of  euro  banknotes,  Section  1  of  the  draft

legislative  provision  enables the  Bank  of  Greece to  exercise  the  ECB’s  copyright  and  thus  to

take  action,  including  initiating  legal  proceedings,  in  the  case  of  infringement.  The  ECB

welcomes the fact that such enforcement powers have been given to the Bank of Greece, since

this accords with the decentralised approach contained in Article 1 of Guideline ECB/1999/3 of

the European Central Bank of 7 July 1998 on certain provisions regarding euro banknotes, as

amended on 26 August 19997. Article 1(1) of Guideline ECB/1999/3  imposes  on  the  national

central banks (NCBs) the obligation to  take  all  necessary  and feasible  measures, according  to

their  national  legal  systems,  to  ensure  that  there  is  no  breach  of  the  copyright  on  the  euro

banknote  designs  held  by  the  ECB.  Article  1(2)  further  compels  NCBs,  when  they  become

aware  of  unauthorised  reproductions  of  euro  banknotes  having  occurred  on  their  national

territory, to take immediate action to ensure that such reproduction ceases and that any copies

produced in this manner are withdrawn, and to inform the ECB without delay. 

7. 

The  ECB  takes  note  that  Section  4  of  the  draft  legislative  provision  introduces  criminal  law

penalties for the damage and mutilation of euro banknotes. It renders any damage, including any

5 
6 
7 

OJ C 11, 15.1.1999, p. 13.
Article 3.
OJ L 258, 5.10.1999, p. 32.

2

                                                     
alteration  effected  by  various  means,  or  mutilation  of  euro  banknotes,  a  criminal  offence

carrying a penalty of imprisonment for a term of one up to six months or a fine of not less than

500 euro. Damaged or mutilated euro banknotes shall  be  handed  over  to  the  Bank  of  Greece.

The procedure for exchanging damaged or mutilated banknotes is in conformity with the rules

laid down in Article 3(3) of Decision ECB/2001/7. Notwithstanding this, the Greek authorities

are invited to apply the provisions laid down in Section 4  of  the  draft  legislative  provision in

such a way that it does not discourage the acceptance of euro banknotes.

8. 

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 10 October 2002.

The President of the ECB

[signed]

Willem F. DUISENBERG

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