Opinion of the European Central Bank of 9 November 2012 on the Banco de Portugal’s staff remuneration and the budget (CON/2012/86)
Date: 2012-11-09
Institutions: European Central Bank
Subjects: Portugal, central bank, national budget, national law, pension scheme, public expenditure, remuneration of work

EN 

ECB-PUBLIC 

OPINION OF THE EUROPEAN CENTRAL BANK 

of 9 November 2012 

on the Banco de Portugal’s staff remuneration and the budget 

(CON/2012/86) 

Introduction and legal basis 

On  23  October  2012,  the  European  Central  Bank  (ECB)  received  a  request  from  the  President  of  the 

Portuguese Parliament for an opinion on several provisions contained in the draft law on the 2013 state 

budget proposed by the Government (hereinafter the ‘2013 draft budget law’).  

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 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, as Chapter III of the 2013 draft budget law may have implications for the Banco 

de Portugal (BdP). 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 2013 draft budget law 

1.1  The 2013 draft budget law contains exceptional austerity measures aimed at restoring the budgetary 

balance, mainly by way of tax increases and public spending cuts. 

1.2  Once  approved, the  planned  measures  will  apply  to the  public  sector  generally and  supersede  all 

currently  applicable  lex  specialis  regimes,  collective  bargaining  agreements  and  individual 

employment contracts.  

1.3  One provision of the 2013 draft budget law refers specifically to the BdP. Article 28(8) expressly 

provides that the  BdP  shall  ‘take  into account the  efforts  to  generally  contain  costs  in the  public 

sector, as reflected in the [draft] law’ and authorises it to decide, ‘as an alternative to measures with 

equivalent effect that have already been decided’, to suspend payment of the holiday allowance or 
any other 14th month equivalent payment to its workers in 2013, in derogation from its obligations 

under labour law and from the relevant collective bargaining instruments.  

2. 

General observations  

2.1  The  ECB  understands and welcomes  that the  2013  draft budget  law  is intended to  reduce public 

expenditure.  

1  

OJ L 189, 3.7.1998, p. 42.  

 
 
 
 
 
                                                           
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2.2  The  ECB  already  commented  on  a  similar  draft  law  in  2010  in  Opinion  CON/2010/80.  The 

comments made in that Opinion remain valid and are hereby referred to, while the present opinion 

concentrates on some particularly relevant aspects. 

3. 

Central bank independence 

3.1  To the extent that it applies to the BdP, the 2013 draft budget law has implications as regards the 

principle  of  central  bank  independence,  in  particular  for  the  financial  and  institutional 

independence of the BdP, as well as for the personal independence of the members of the BdP’s 

decision-making bodies.  

3.2  As  regards  the  principle  of  financial  independence,  and  in  addition  to  the  remarks  made  in 

CON/2010/80, the ECB understands that during the parliamentary procedure the BdP shall still be 

given the opportunity to express its opinion, with a view to reaching a solution which gives proper 
consideration to the requirements for the BdP’s financial independence2, including issues relating to 

staff  remuneration  and  staff  pensions.  Opinion  CON/2012/6  recently  considered  one  form  of 

effective  cooperation  between  a  government  and  an  NCB:  the  draft  legislative  provisions  in 

question established that the public service pension reduction scheme would only be applicable to 
the Central Bank of Ireland with the consent of its Governor3.  

3.3  As regards the BdP’s institutional independence and the personal independence of the members of 

the  BdP’s  decision-making  bodies,  the  ECB  refers  to  the  comments  made  in  CON/2010/80,  in 

particular paragraphs 3.2.7 to 3.2.10.  

4. 

Prohibition of monetary financing  

The provisions in the 2013 draft budget law must comply with the monetary financing prohibition 

laid down in Article 123 of the Treaty, as further clarified in Council Regulation (EC) No 3603/93 

of 13 December 1993 specifying the definitions for the application of the prohibitions referred to in 
Articles  104  and  104b(1)(1)  of  the  Treaty4.  In  addition  to  the  remarks  already  made  in 

paragraph 3.3  of  Opinion  CON/2010/80  in  that  respect,  the  ECB  would  like  to  comment  on  the 

newly  introduced  Article  31  of  the  2013  draft  budget  law.  This  Article  provides  that  the  entities 

referred  to  in  Article  26(9)(q)  which  are  responsible  for  processing  the  remuneration  of  workers 

‘shall  hand  over  to  the  Treasury  those  amounts  of  the  allowance  whose  payment  is  suspended 

pursuant to Article 28’. To the extent that this provision applies to BdP, the ECB emphasises that 

any direct financial transfer of this nature from the BdP to the State budget, without the opportunity 

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4  

As stated in the ECB’s convergence reports and in several of its opinions, any amendment to the legislative provisions on 
the remuneration for  members of an NCB’s decision-making bodies and its employees should be decided in close and 
effective cooperation with the NCB, taking due account of its views, to ensure the ongoing ability of the NCB to carry 
out  its  tasks  independently.  Autonomy  in  staff  matters  extends  to  issues  relating  to  staff  pensions.  See  Opinion 
CON/2012/6. All ECB opinions are published on the ECB’s website at www.ecb.europa.eu. 
See Opinion CON/2012/6 paragraphs 2 and 3. In addition, see Opinion CON/2010/58. 
OJ  L  332,  31.12.1993,  p.  1.  Articles  104  and  104b(1)  of  the  Treaty  establishing  the  European  Community  are  now 
Articles 123 and 125(1) of the Treaty (on the Functioning of the European Union). 

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on the part of the BdP to use the resources in question as it sees fit for the fulfilment of its tasks, 

represents  an  increase  in  the  funding  of  the  Portuguese  State  at  the  BdP’s  expense  and  could  be 

considered monetary financing under Article 123 of the Treaty.  

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

Done at Frankfurt am Main, 9 November 2012. 

[signed] 

The President of the ECB 

Mario DRAGHI 

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