Proposal for a Council Decision concerning the analysis and cooperation with regard to counterfeit euro coins
Date: 2003-07-17
Institutions: European Commission
Subjects: European Commission, France, economic offence, euro, fraud, fraud against the EU, operation of the Institutions, paper money, powers of the institutions (EU)

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 17.7.2003
COM(2003) 426 final

2003/0158 (CNS)

Proposal for a

COUNCIL DECISION

concerning the analysis and cooperation with regard to counterfeit euro coins

(presented by the Commission)

EXPLANATORY MEMORANDUM

1.

The scheme for the protection of the euro coins

Council Regulation (EC) No 1338/2001 of 28 June 20011 laying down measures necessary for
the protection of the  euro against counterfeiting, and in particular its Article 5, provides  for
the  analysis  and  classification  of  counterfeit  coins  by  the  Coin  National  Analysis  Centre
(CNAC)  in  each  of  the  EU  Member  States2  and  by  the  European  Technical  and  Scientific
Centre  (ETSC).  The  smooth  operation  of  this  structure  requires  cooperation  among  those
authorities which carry out the technical tasks of analysis and classification of the counterfeit
euro coins.

In its conclusions of 28 February 2000, the Ecofin Council  agreed the technical scheme  for
handling counterfeit euro coins. The main principles for its implementation were enshrined in
the above Regulation.

The  Member  States  have  established  or  designated  appropriately  equipped  CNACs  and  the
Commission has  provided  for  a  framework  for  the  co-ordination  of  Member  States’  actions
regarding the collection and technical analysis of counterfeit euro coins. For that purpose, the
Commission has informally set up the Counterfeit Coin Experts Group, which it manages and
chairs.

2.

The European Technical and Scientific Centre

Based on an exchange of letters between the President of the Ecofin Council and the Finance
Minister of France of 28 February and 9 June 2000, the ETSC was established on a temporary
basis at the French Mint as an entity distinct and independent from the hosting structure. The
ETSC has started operating on 1 October 2001. The Commission has appointed staff for the
ETSC, which carries out the necessary analyses in close proximity to the French CNAC. The
French  authorities  put  the  relevant  staff  and  equipment,  as  a  priority,  at  the  disposal  of  the
ETSC  and  provide  secretarial  assistance,  premises,  equipment  and  maintenance  for  the
functioning of the ETSC. Thus, the Community budget bears the travel cost of the appointed
ETSC staff and minor office expenditure (phone communications).

Council Regulation (EC) No 1338/2001 and the exchange of letters of 28 February and 9 June
2000 provide that the future status and the permanent location of the ETSC will be decided by
the Council  in  due course.  In line  with  the  Ecofin  Council  conclusions  of  February  2000,  a
status report was prepared assessing the performance of the ETSC. The report was prepared
under the responsibility of the EU Mint Directors and concludes that the location at which the
ETSC  presently  carries  out  its  activity  is  appropriate  and  that  the  Commission  ensures  the
appropriate administrative and institutional setting in terms of efficiency and independence.

The status report has been endorsed by the Economic and Financial Committee (EFC), which
welcomes the assessment report on the ETSC and proposes that it should continue to carry out
its  activities  using  the  facilities  of  the  French  Mint.  The  EFC  also  suggests  that  the
Commission  should  continue  co-ordinating  Member  States’  technical  work  related  to  the

1

2

OJ L 181, 4.7.2001, p. 6.
Regulation 1339/2001 (L 181, 4.4.2001, p. 11) extends the effects of Regulation (EC) No 1338/2001 to
those Member States which have not adopted the euro as their single currency.

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protection of the euro coins and take the appropriate action for ensuring the functioning of the
ETSC. The EFC has approved draft conclusions for the Ecofin Council to that effect.

Based on the  above, two formal steps are envisaged: one Council Decision  assigning to the
Commission the responsibilities regarding the functioning of the ETSC and the co-ordination
of the Member States technical actions to protect the euro coins against counterfeiting; and a
subsequent Decision by the Commission by which it implements that responsibility.

The current proposal refers to the first of the two steps.

3.

The proposed Council Decision

The  aim  of  the  proposed  Council  Decision  is  to  formally  assign  to  the  Commission  the
responsibility to ensure the functioning of the ETSC and the co-ordination of the activities of
the competent technical authorities to protect euro coins against counterfeiting.

The proposal is based on article 123(4) EC and is aimed at implementing article 5 of Council
Regulation 1338/2001, related to the analysis and classification of counterfeit euro coins.

The Commission is currently providing the framework allowing the co-ordination of Member
States technical actions to protect the euro coins against counterfeiting and has been ensuring
the  functioning  of  the  ETSC,  since  it  became  operational  in  October  2001,  through
management  and  administrative  support.  The  Member  States  are  satisfied  with  the
performance of the ETSC.

As a result, the Commission should continue to perform these activities carried out until now
on a temporary basis, ensuring that the protection of the euro coins is carried out on a basis of
stability and independence.

The sole Article of the proposed Council Decision specifies the responsibilities to be assigned
to the Commission. These include the  functioning of the European  Technical  and  Scientific
Centre and the co-ordination of the activities of the competent technical authorities to protect
the euro coins against counterfeiting.

Under the current configuration of the tasks of the ETSC and the level of coin counterfeiting,
no additional financial means will be required.

4.

Intended follow-up action by the Commission

Building  on  the  above  Council  Decision,  the  Commission  would  then  adopt  a  Commission
Decision, by which:

(1) 

(2) 

it will  establish the ETSC as part  of  the  Commission’s  services  in  Brussels  and  will
detach staff to the French Mint in order to use its technical facilities;

it  will  formally  provide  for  the  necessary  co-ordination  of  Member  States’  technical
action for the protection of the euro coins;

(3) 

it will provide for regular reporting to the EFC on the co-ordination activities.

Prior  to  the  adoption  of  the  Commission’s  Decision,  a  formal  commitment  by  the  French
authorities will be required, confirming the continuation of the present sharing of the relevant
costs.

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The  ETSC  would  continue  to  work  in  close  collaboration  with  the  EU  Mint  Directors  and
would  continue  to  report  annually  to  the  EFC,  the  ECB,  Europol  and  the  competent
authorities in Member States.

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2003/0158 (CNS)

Proposal for a

COUNCIL DECISION

concerning the analysis and cooperation with regard to counterfeit euro coins

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular the third
sentence of Article 123(4) thereof,

Having regard to the proposal from the Commission3,

Having regard to the opinion of the European Parliament4,

Having regard to the opinion of the European Central Bank5,

Whereas:

(1) 

(2) 

(3) 

Council  Regulation  (EC)  No  1338/2001  of  28  June  2001  laying  down  measures
necessary  for  the  protection  of  the  euro  against  counterfeiting6  provides  for  the
analysis  and classification of counterfeit coins by the Coin National  Analysis  Centre
(CNAC) in each of the Member States and by the European Technical and Scientific
Centre (ETSC). The Commission has provided, since the year 2000, the framework for
the co-ordination of the relevant actions of those technical authorities,

Since October 2001, the ETSC has been carrying out its tasks on a temporary basis at
the  French  Mint  with  administrative  support  and  management  provided  by  the
Commission, in line with an exchange of letters between the President of the Council
and the French Minister for Finance of 28 February and 9 June 2000.

In  order  to  ensure  the  continuity  and  independence  of  the  protection  of  euro  coins
against counterfeiting, the Commission should be given responsibility for performing
the  activities  of  the  ETSC  and  for  ensuring  the  co-ordination  of  the  competent
technical authorities in their actions in this field,

HAS DECIDED AS FOLLOWS:

3
4 
5 
6 

OJ C , , p. .
OJ C , , p. .
OJ C , , p. .
OJ L 181, 4.7.2001, p. 6.

5

                                                
Sole Article

The Commission shall ensure the functioning of the European Technical and Scientific Centre
and  the  co-ordination  of  the  activities  of  the  competent  technical  authorities  to  protect  euro
coins against counterfeiting.

Done at Brussels,

For the Council
The President

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ANNEX

FINANCIAL IMPACT

No additional financial impact.

1.

FINANCIAL IMPACT ON PART B

No financial impact.

2.

IMPACT ON STAFF AND ADMINISTRATIVE EXPENDITURE

No  additional  impact.  The  needs  for  human  and  administrative  resources  shall  be  covered
within  the  allocation  granted  to  the  managing  DG  in  the  framework  of  the  annual
allocation procedure.

2.1.

Impact on human resources

One  temporary  agent  A-5  and  one  temporary  agent  A-7,  to  be  provided  from  existing
resources. Based on the current standards, the annual cost of the two agents is 135000 euro.

2.2.

Other administrative expenditure deriving from the action

Budget line

(A-360; 24.01.06 as of 2004)

Overall allocation (Title A7)

Information systems (A-5001/A-4300)

Other expenditure - Part A

A01300 – Missions

A02500 – Meetings of counterfeit coin experts

A02410 – Telephone, fax, telex

Other expenditure

Amount €

Method of calculation

-

Provided  by  the  French
Mint

23000

50000

3000

Premises  provided  by  the
French Mint

Total

76000

Based  on  previous  year
and estimates for coming
years

The amounts are total expenditure for twelve months.

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