Opinion of the European Central Bank of 2 September 2008 at the request of the Slovak Ministry of Defence and of the Slovak Ministry of Labour, Social Affairs and Family on draft laws laying down further detailed rules on the euro changeover falling within their field of competence (CON/2008/40)
Date: 2008-09-02
Institutions: European Central Bank
Subjects: Slovakia, euro, exchange rate, foreign-exchange reserves, monetary integration, money, national law

EN 

OPINION OF THE EUROPEAN CENTRAL BANK 

of 2 September 2008 

at the request of the Slovak Ministry of Defence and of the Slovak Ministry of Labour, 

Social Affairs and Family on draft laws laying down further detailed rules on the 

euro changeover falling within their field of competence 

(CON/2008/40) 

Introduction and legal basis 

On  28  July  2008  the  European  Central  Bank  (ECB)  received  a  request  from  the  Slovak  Ministry  of 

Defence for an opinion on a draft law amending certain laws in the field of defence in relation to the euro 
introduction (hereinafter the ‘first draft law’)1 and on 30 July 2008 the ECB received a request from the 

Slovak Ministry of Labour, Social Affairs and Family on a draft law amending certain laws in the field of 
its  competence  in  relation  to  the  euro  introduction  (hereinafter  the  ‘second  draft  law’)2,  a  draft  law  on 
civil service and on amendments to certain laws (hereinafter the ‘third draft law’)3, a draft law amending 

the Law No 533/2003 Coll. on remuneration of certain employees performing work in the public interest 
and  on  amendments  to  certain  laws  (hereinafter  the  ‘fourth  draft  law’)4,  a  draft  law  amending  the  Law 

No 283/2002  Coll.  on  reimbursement  of  travel  expenses  (hereinafter  the  ‘fifth  draft  law’),  a  draft  law 

amending the Law No 599/2003 Coll. on assistance in material need and on amendments to certain laws, 

and  amending  the  Law  No 453/2003  Coll.  on  state  administration  bodies  in  the  field  of  social  affairs, 
family  and  employment  services  and  on  amendments  to certain  laws  (hereinafter  the  ‘sixth  draft  law’)5 
and a draft law on child care allowance and on amendments to certain laws6 (hereinafter the ‘seventh draft 
law’).7 

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2  

3  

4  

5  

6  

7  

The  first  draft  law  consists  of  five  amendments  to  specific  laws  falling  within  the  field  of  competence  of  the  Slovak 
Ministry of Defence. 
The second draft law consists of six amendments to specific laws falling within the field of competence of the Slovak 
Ministry of Labour, Social Affairs and Family. 
The  third  draft  law  consists  of  10  amendments  to  specific  laws  falling  within  the  field  of  competence  of  the  Slovak 
Ministry of Labour, Social Affairs and Family, but only four of them are relevant to this consultation. 
The fourth draft law consists of two amendments to specific laws falling within the field of competence of the Slovak 
Ministry of Labour, Social Affairs and Family, but only one of them is relevant to this consultation. 
The  sixth  draft  law  consists  of  two  amendments  to  specific  laws  falling  within  the  field  of  competence  of  the  Slovak 
Ministry of Labour, Social Affairs and Family, but only one of them is relevant to this consultation. 
The seventh draft law consists of three amendments to specific laws falling within the field of competence of the Slovak 
Ministry of Labour, Social Affairs and Family, but only two of them are relevant to this consultation. 
For ease of reference, each draft law is divided into sections and subsequently into points and articles, if necessary, within 
each section. 

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

European Community 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 provisions8, as the draft laws 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  Bank,  the 

Governing Council has adopted this opinion. 

1.  

Purpose of the draft laws 

The purpose of the draft laws is to facilitate the smooth euro changeover in Slovakia. All of them provide 

for technical details concerning the introduction of the euro and specific provisions relate to conversion 

and rounding of certain amounts and to foreign exchange rates. As specific legislative measures, all of the 

draft laws should be in accordance with the general legal framework established by the Law No 659/2007 

Coll.  on  the  introduction  of  the  euro  in  Slovakia  and  on  amendments  to  certain  laws  (hereinafter  the 

‘Slovak Euro-Law’).  

2. 

General observations 

The  Slovak  authorities  have  already  consulted  the  ECB  on  issues  relating  to  the  euro  changeover.  The 

ECB would therefore like to concentrate in this opinion on issues that were not addressed in its previous 
opinions9  and  which  are  also  significant  for  other  Slovak  authorities  with  regard  to  draft  legislative 

provisions on the introduction of the euro falling within their competence and currently submitted to the 
legislative  process  in  Slovakia10.  Among  these  issues,  the  following  should  be  highlighted:  (i)  specific 

aspects  of  conversion  and  rounding  of  certain  amounts  in  relation  to  the  principle  of  neutrality; 

(ii) foreign exchange reference rates.  

8  
9  

10  

OJ L 189, 3.7.1998, p. 42.  
See ECB Opinion CON/2007/43 of 19 December 2007 at the request of the Slovak Ministry of Finance on a draft law on 
the introduction of the euro in Slovakia and on amendments to certain laws; ECB Opinion CON/2008/23 of 30 May 2008 
at  the  request  of  Národná  banka  Slovenska  on  a  draft  decree  laying  down  rules  for  the  dual  display  of  certain  prices, 
payments  and  other  amounts  and  on  a  draft  decree  laying  down  the  number  of  decimal  places  of  certain  types  of 
securities for the purpose of rounding by redenomination of their nominal value from the Slovak currency to the euro; 
ECB Opinion CON/2008/25 of 12 June 2008 at the request of the Slovak Ministry of Finance on a draft decree laying 
down the scope of prices, payments and other amounts subject to dual display with regard to the field of gambling games 
and methods of their dual display; and ECB Opinion CON/2008/27 of 1 July 2008 at the request of the Slovak Ministry 
of Labour, Social Affairs and Family on a draft decree laying down further detailed rules on the dual display, conversion 
and  rounding  of  certain  prices,  payments  and  other  amounts  in  the  labour  law  and  social  security  sectors  on  the  euro 
changeover. 
Apart from requests received from the Slovak Ministry of Defence and the Slovak Ministry of Labour, Social Affairs and 
Family, the ECB has also been consulted either officially or informally by the Slovak Ministry of Education (on eight 
draft  laws),  Národná  banka  Slovenska  (on  two  draft  decrees),  the  Slovak  Ministry  of  Interior  (on  38  draft  laws),  the 
Slovak Ministry of Transport, Post and Telecommunication (on six draft laws), the Slovak Ministry of Culture (on one 
draft  law), the  Slovak  Ministry of  Justice  (on  24  draft laws),  the  Slovak  Ministry  of  Health  (on  14  draft  laws  and  one 
draft  decree),  the  Slovak  Ministry  of  Finance  (on  17  draft laws)  and  the  Slovak  Ministry  of  Environment  (on  22  draft 
laws and one draft decree) in each case in relation to the same or very similar issues relating to the euro changeover. 

2 

 
 
                                                 
3. 

Specific observations on the first draft law 

Foreign exchange reference rates 

3.1  The  general  provisions  establishing  the  system  for  setting  and  publishing  foreign  exchange  rates 

are laid down in Article 17(2) of the Slovak Euro-Law and in new Articles 28(2) and 49ab(6) of the 
Law on Národná banka Slovenska11. This system applies from the date of introduction of the euro 

in Slovakia, after which: (i) the respective exchange rates between the euro and other currencies are 

set and published by the ECB; and (ii) other relevant exchange  rates between the euro and other 

currencies  are  set  and  published  by  Národná  banka Slovenska  in  the  event  the  ECB  does  not  set 

and publish the rates for such currencies, unless otherwise agreed by the parties to the respective 

legal relationship or provided for in a separate legal act. The provision proposed pursuant to Point 

22 in Section III of the first draft law states that: ‘[…] if the prepayment was made in a currency 

other than euro, the exchange rate for such currency published by Národná banka Slovenska on the 

first day of the month in which the prepayment is deducted shall be used.’ This provision should be 

aligned with the abovementioned provisions of the Slovak Euro-Law in order to recognise the role 
of  the  ECB  and  the  Council  of  the  European  Union  in  the  field  of  exchange  rate  policy12  in 

accordance with Article 111 of the Treaty and Article 12.1 of the Statute. 

Rounding rules and principle of neutrality 

3.2  Article 7 of Council Regulation (EC) No 974/98 of 3 May 1998 on the introduction of the euro13 

lays  down  the  principle  that  ‘The  substitution  of  the  euro  for  the  currency  of  each  participating 

Member State shall not in itself have the effect of altering the denomination of legal instruments in 

existence on the date of substitution’ (hereinafter the ‘principle of neutrality’). Moreover, pursuant 

to Article 5 of Council Regulation (EC) No 1103/97 of 17 June 1997 on certain provisions relating 
to the introduction of the euro14, any monetary amount to be paid or accounted for must be rounded 

up  or  down  to  the  nearest  cent.  This  provision  is  reflected  in  the  first  and  second  sentences  of 
Article 2(3) of the Slovak Euro-Law15. The last sentence of Article 2(3) of the Slovak Euro-Law 

introduced the rule ‘in favour of citizens’, thereby allowing the national legislator to deviate from 

the general legal framework for the euro changeover by adopting a specific law in relation to the 

11  
12  

13  
14  
15  

See the Law No 566/1992 Coll. on Národná banka Slovenska. 
The ECB notes that a comparable legal technique is already applied in the second draft law (see the second sentence of 
the provision proposed pursuant to Point 8 of Section I), in Article 111(7) in Section I of the third draft law and also in 
another provision of the first draft law (see the provision proposed pursuant to Point 20 of Section III). 
OJ L 139, 11.5.1998, p. 1. 
OJ L 162, 19.6.1997, p. 1. 
The  first  and  second  sentences of  Article  2(3) of  the  Slovak  Euro-Law  provide:  ‘If calculation  of  conversion from  the 
Slovak currency to euros in accordance with the conversion rate results in final financial amounts in euro which shall be 
actually paid or accounted (hereinafter ‘final amounts’), in particular final amounts accounted in statements of account or 
final  amounts  of  price,  payment or  other  value  stated  in  invoices,  other  accounting  documents  or  payment  documents, 
such final amount in euro shall, after conversion in accordance with the conversion rate, be rounded to a number with two 
decimal places, i.e. to the nearest euro cent, pursuant to rules set out in a separate legal provision. The total calculated 
remainder of a final amount which is lower than one half of one euro cent, shall, pursuant to a separate legal provision, be 
rounded down to the nearest euro cent, and the total calculated remainder of a final amount which is higher than one half 
of one euro cent, shall, pursuant to a separate legal provision, be rounded up to the nearest euro cent, unless all parties to 
the respective legal relationship agree otherwise or a separate legal provision stipulates otherwise.’ 

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rounding up or down of amounts to be paid or accounted for depending on whether such amounts 
are  income  or  expenditure  of  the  State  budget16.  Moreover,  in  line  with  existing  rules  and 
practices17  for  rounding  of  such  amounts  in  Slovak  legislation,  the  respective  amounts  were 

rounded up or down to 50 haliers, to the nearest Slovak koruna, and to the nearest SKK 10, 100 or 

300, etc. As a consequence of the application of these rules and practices, the amounts to be paid or 
accounted for as stated in all the draft laws18, e.g. in the provisions proposed pursuant to Point 5 of 
Section II of the first draft law19, Point 5 of Section I of the second draft law, Point 14 of Section I 
of the fourth draft law20, Point 5 of Section I of the sixth draft law21 and Point 17 of Section III of 

the first draft law, are rounded up or down to the nearest cent, to the nearest 10 or 50 cent, to the 

nearest euro or to the nearest EUR 10. Furthermore, amounts are rounded inconsistently, even in 

the case of the same type or category of amount. 

The ECB would like to point out that the rounding of amounts to be paid or accounted for up or 

down  to  more  than  one  cent  is  not  per  se  in  accordance  with  Article  5  of  Regulation 

(EC) No 1103/97  and  Article  7  of  Regulation  (EC)  No  974/98.  Nevertheless,  the  principle  of 
neutrality22  must  not  prevent  the  national  legislator  from  using  its  sovereign  powers  when 

expressing monetary amounts such as fines, fees, minimum capital, taxes, allowances, salaries, etc. 

in legislative provisions. 

Accordingly,  the  national  legislator  remains  free  to  legislate  on  the  increase  or  decrease  of  any 

monetary amounts while addressing euro changeover matters. In doing so, however, it is bound to 

act  in  accordance  with  the  principles  of  legal  certainty  and  transparency,  i.e.  it  must  ensure  that 
economic agents are able to make a clear distinction23 between a decision of the Member State’s 

16  

17  

18  

19  

20  

21  

22  

23  

The last sentence of Article 2(3) of the Slovak Euro-Law provides that ‘Final amounts representing revenues of the State 
budget or another type of general government budget shall preferentially be rounded down in favor of the persons obliged 
to  make  the  respective  payments,  and  final  amounts  representing  expenditures  of  the  state  budget  or  another  type  of 
general government budget shall preferentially be rounded up in favor of the persons entitled for receipt of the respective 
payments, unless a separate legal provision stipulates otherwise.’ 
A different approach to the methodology of rounding is derived from all of the following: (a) the relationship between 
rounded amounts and time units, i.e. either hours or months; (b) the levels of rounding applied until now, which start with 
rounding  to  tens  of  haliers  in  respect  of  hourly rate  units, and  end  with  rounding  to  hundreds  of  korunas  in  respect  of 
monthly wages and lump sum reimbursements for certain groups of people; and (c) the source of funds, which is either 
the State budget or a municipal budget (general government budget), or expenses paid by an employer; this factor also 
has an impact on the direction of rounding of a particular amount. 
It  should  be  noted  that  rounding  of  certain  monetary  amounts  in  whole  Slovak  korunas  up  or  down  to  10  cent  is 
recognised pursuant to the Law No 461/2003 Coll. on social insurance, which has already been adopted. 
For rounding up or down to the nearest euro, see also the provision proposed pursuant to Point 1 of Section III of the 
second  draft  law,  Article 113(8) in  Section  I  of  the  third draft  law  and  the  provision  proposed  pursuant  to  Point  25  of 
Section III of the first draft law. 
For rounding up or down to 50 cent see also the provisions proposed pursuant to Point 15 of Section I and Point 18 of 
Section I of the fourth draft law, and Article 137(3) in Section I of the third draft law. 
For rounding up or down to the nearest cent see also the provisions proposed pursuant to Point 2 of Section IV and Point 
4 of Section VI of the second draft law, Point 5 of Section I of the sixth draft law and Point 43 of Section I of the fifth 
draft law. 
As stated in paragraph 25 of Case C-359/05 Estager v Receveur principal de la recette des douanes de Brive [2007] ECR 
I-00581 ‘The principle of the continuity of legal instruments and the objective that the transition to the euro should be 
neutral apply to the “terms” or to the “wording” of the “legal instruments” within the meaning of Regulations No 1103/97 
and No 974/98’. 
It  applies  not  only  to  legislative  acts,  but  also  to  implementing  measures  or  other  legal  instruments,  e.g.  collective 
agreements  governing  the  issue  of  rounding  of  certain  monetary  amounts  up  or  down  to  more  than  one  cent.  See  for 

4 

                                                 
authorities to increase or decrease any amount and the process of converting that amount into euro 
and  rounding  it24.  The  national  legislator  is  therefore  obliged  to  act  in  accordance  with  the 

abovementioned  principles  when  applying  the  provisions  of  the  Slovak  Euro-Law  which  permit 

certain amounts to be rounded up ‘in favour of citizens’. 

Finally, in the light of its Opinion CON/2008/2325, the ECB would also like to emphasise that the 

same rounding method and a consistent approach should be used in draft legislative provisions for 

monetary amounts of a comparable type and/or category. 

This opinion will be published on the ECB’s website. 

Done at Frankfurt am Main, 2 September 2008. 

[signed] 

The President of the ECB 

Jean-Claude TRICHET 

example the provision proposed pursuant to Point 9 of Section I of the second draft law, which states that ‘Paid out wages 
shall  be  rounded  up  to  the  nearest  euro  cent  unless  the  collective  agreement  or  employer  in  an  internal  implementing 
regulation provide for more favourable arrangements for employees with regard to rounding of wages’. 
The  Court  held  in  Estager  that  ‘Council  Regulation  (EC)  No  1103/97  …  and  Council  Regulation  (EC)  No 974/98  … 
must  be  interpreted  as  precluding  national  legislation  which,  on  effecting  the  conversion  into  euros  of  an  amount  … 
raised it to an amount higher than that which would have resulted from application of the rules of conversion provided for 
in  those  regulations,  unless  such  an  increase  meets  the  requirements  of  legal  certainty  and  transparency  guaranteed  by 
those regulations, which presupposes that the legislative texts at issue make it possible to distinguish clearly the decision 
of the authorities of a Member State to increase that amount from the operation of conversion of that amount into euros.’ 
See also paragraphs 34, 35 and 37 of the judgment in Estager. 
See paragraph 4 of ECB Opinion CON/2008/23. 

24  

25  

5