Opinion of the European Central Bank of 26 July 2010 on the containment of public expenditure, as regards the Banca d’Italia (CON/2010/58)
Date: 2010-07-26
Institutions: European Central Bank
Subjects: Italy, central bank, national law, public expenditure

EN 

OPINION OF THE EUROPEAN CENTRAL BANK 

of 26 July 2010  

on the containment of public expenditure, as regards the Banca d’Italia 

(CON/2010/58) 

Introduction and legal basis 

On  15  July  2010  the  European  Central  Bank  (ECB)  received  a  request  from  the  Italian  Ministry  of 

Economic  Affairs  and  Finance  (hereinafter  the  ‘Ministry’)  for  an  opinion  on  Decree-Law  No  78  of 
31 May  2010  on  urgent  measures  for  financial  stabilisation  and  economic  competitiveness1  (hereinafter 

the ‘Decree-Law’), in particular Article 3(3) thereof. 

The ECB’s competence to deliver an opinion is based on Articles 127(4) and 282(5) of the Treaty on the 

Functioning of the European Union and 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  provisions2,  as  the  Decree-Law  relates  to  the  Banca  d’Italia.  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 Decree-Law 

The  Italian  Government  adopted  the  Decree-Law  on  31  May  2010  with  the  purpose  of  stabilising  the 

public finances, including by means of reducing public expenditure. The specific provision on which the 

ECB was consulted regards the role of the Banca d’Italia as a national central bank (NCB). Article 3(3) of 

the Decree-Law provides that the Banca d’Italia ‘shall take account, in relation to its own legal order, of 
the  principles  of  the  containment  of  expenditure’  laid  down  in  Title  I3  of  the  Decree-Law  for  the  three 

years 2011-2013.  

2. 

General observations  

2.1  Compliance with the central bank independence principle 

2.1.1  The  ECB  understands  that  Article  3(3)  of  the  Decree-Law  directly  and  specifically  concerns  the 

Banca d’Italia, thus it prevails over any other provision of Title I of the Decree-Law which might 

otherwise have been applicable to the Banca d’Italia. 

1  
2  
3  

Gazzetta Ufficiale della Repubblica Italiana No 125, 31.5.2010; Supplemento Ordinario No 114. 
OJ L 189, 3.7.1998, p. 42.  
Title I of the Decree-Law consists of several provisions the aim of which is to reduce public expenditure.   

 
 
 
 
 
                                                 
2.1.2  As  recalled  in  the  ECB  Convergence  Reports4  and  several  opinions5  on  issues  concerning 

autonomy in staff matters, which are an aspect of NCBs’ financial independence, Member States 

may not impair an NCB’s ability to employ and retain the qualified staff necessary for the NCB to 

perform  independently  the  tasks  conferred  on  it  by  the  Treaty  and  the  Statute  of  the  European 

System of Central Banks and of the European Central Bank (hereinafter the ‘Statute of the ESCB’).  

2.1.3  The  ECB  understands  that  Article  3(3)  of  the  Decree-Law  does  not  require  the  Banca  d’Italia  to 

take specific measures but invites it to consider, taking into account its own legal order, whether 

the purposes enshrined in the Decree-Law can be achieved without prejudicing the Banca d’Italia’s 

performance  of  its  tasks  under  the  Treaty,  the  Statute  of  the  ESCB  and  national  legislation.  The 

Decree-Law  can  therefore  be  considered  compatible  with  the  principle  of  central  bank 

independence.  However,  the  ECB  trusts  that  it  will  be  consulted  on  any  future  or  revised  draft 

legislative provisions in this matter. 

2.2  Compliance with the consultation obligation 

2.2.1  In view of the late stage in the legislative process at which the ECB was consulted on an urgent 

basis,  the  ECB  would  like  to  draw  attention  to  Article  4  of  Decision  98/415/EC,  which  requires 

Member  States  to  ensure  that  the  ECB  is  consulted  at  an  appropriate  point  in  time  to  allow  the 

consulting authority to take its opinion into consideration before deciding on the substance of the 
draft  legislative  provisions6.  In  the  present  matter,  the  ECB  was  consulted  more  than  one  month 

after approval of the Decree-Law by the Italian Government, and fourteen days before the deadline 

for final conversion of the Decree-Law into a law by the Parliament. 

2.2.2  As has been stated in other ECB opinions7, in cases of particular urgency which do not allow for a 

normal consultation period, the consulting authority may indicate such urgency in the consultation 

request  and  ask  for  a  shorter  deadline  for  adoption  of  the  ECB’s  opinion.  However,  the  ECB 

considers that the justification provided by the Ministry cannot be considered as a case of extreme 

urgency  within  the  meaning  of  Article  3(2)  of  Decision  98/415/EC.  The  ECB  understands  that, 

pursuant  to  Article  77  of  the  Italian  Constitution,  the  Italian  Government  may,  in  the  event  of 

4  
5  

6  
7  

See, for example, the ECB Convergence Report 2010, p. 23; available on the ECB’s website at www.ecb.europa.eu. 
See  ECB  Opinions  CON/2008/9,  CON/2008/10,  CON/2009/15,  CON/2009/45,  CON/2009/47,  CON/2010/42, 
CON/2010/51 and CON/2010/56. All ECB opinions are available on the ECB’s website. 
On this point see also ECB Opinions CON/2008/10, CON/2010/51 and CON/2010/56. 
See  on  this  point  Opinion  CON/2010/56,  paragraphs  2.2  and  2.3.  In  particular,  the  ECB  would  like  to  emphasise  that 
even  in  cases  of  particular  urgency  a  minimum  one-month  deadline  applies  according  to  Article  3(1)  of  Decision 
98/415/EC.  This  does  not  prejudice  the  consulting  authority’s  duty  under  Articles  127(4)  and  282(5)  of  the  Treaty  to 
consult the ECB on national draft legislative provisions falling within its fields of competence at an appropriate stage in 
the national legislative process, as provided by the second sentence of Article 4 of Decision 98/415/EC. This means that 
the consultation should take place at a point in the legislative process which affords the ECB sufficient time to examine 
the  draft  legislative  provisions  and  to  adopt  its  opinion  in  all  required  language  versions,  and  which  also  enables  the 
relevant national authorities to take the ECB’s opinion into consideration before the provisions are adopted. Article 3(4) 
of  Decision  98/415/EC  also  obliges  Member  States  to  suspend  the  adoption  process  for  draft  legislative  provisions, 
pending receipt of the ECB’s opinion. In the event of extreme urgency, the time limit of one month may be reduced but, 
pursuant to Article 3(2) of Decision 98/415/EC, the consulting authority must state the reasons for the urgency. The ECB 
reiterates its position that even cases of particular urgency do not relieve national authorities from their duty to consult 
the  ECB  and  to  allow  themselves  sufficient  time  to  take  into  account  the  ECB’s  views,  in  accordance  with  Decision 
98/415/EC. On this point see also ECB Opinion CON/2010/51, paragraph 2.  

2 

 
 
                                                 
urgency, adopt a Decree-Law. The Decree-Law has to be converted into a law by the Parliament 

within  sixty  days  from  its  publication.  The  Decree-Law  enters  into  force  immediately  after 

publication  and  has  the  same  legal  effect  as  a  law.  Thus,  when  a  Decree-Law  falls  within  the 

competence of the ECB, as in this case, the ECB should be consulted in due time prior to the entry 

into force of the relevant provisions. More generally, internal administrative procedures should be 

in  place  to  ensure  that  timely  consultation  of  the ECB  is  foreseen  whenever  such  consultation  is 
mandatory8,  and  the  ECB  should  be  consulted  at  an  appropriate  point  in  time  in  the  event  of 
relevant amendments in the course of the legislative procedure9. 

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

Done at Frankfurt am Main, 26 July 2010. 

[signed] 

The President of the ECB 

Jean-Claude TRICHET 

8  
9  

See on this point ECB Opinions CON/2008/10, paragraph 2, last sentence and CON/2010/51, paragraph 2, last sentence. 
Any substantive amendments to the draft law must be submitted to the ECB to allow it to adopt its opinion on the most 
recent text. On this point see ECB Opinion CON/2010/56, paragraph 2.3, last sentence, and ECB Opinion CON/2009/59, 
paragraph 2.1. 

3