Opinion of the European Central Bank of 23 November 2015 on the production of euro banknotes (CON/2015/51)
Date: 2015-11-23
Institutions: European Central Bank
Subjects: Eurosystem, Portugal, euro, money, national law

EN 

ECB-PUBLIC 

OPINION OF THE EUROPEAN CENTRAL BANK 

of 23 November 2015 

on the production of euro banknotes 

(CON/2015/51) 

Introduction and legal basis 

On 7 October 2015, the European Central Bank (ECB) received a request from the Portuguese Ministry 

of  Finance  for  an  opinion  on  a  draft  decree-law  (hereinafter  the  ‘draft  decree-law’)  amending  the 

Portuguese legal framework for the production of euro banknotes. 

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  first  and  third  indents  of  Article 2(1)  of  Council 
Decision 98/415/EC1,  as  the  draft  decree-law  relates  to  currency  matters  and  national  central  banks.  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 decree-law 

The  draft  decree-law  amends  the  existing  legal  framework  for  the  production  of  euro  banknotes 
detailed in Decree-Law 400/99, of 14 October 19992. The main purpose of the draft decree-law is 

to  allow  the  Banco  de  Portugal  (BdP),  as  a  Eurosystem  central  bank  with  an  in-house  printing 

works, to participate in forms of mutual cooperation, either for the production of raw materials or for 

printing  euro  banknotes,  between  Eurosystem  national  central  banks  (NCBs)  that  produce  euro 

banknotes  using  in-house  printing  works  (hereinafter  the  ‘in-house  group  NCBs’).  In  order  to 

facilitate the participation of BdP in such forms of cooperation, the draft decree-law eliminates the 

requirement for the BdP to hold a qualifying majority (51% or more) of the share capital of the legal 

entities that produce and print euro banknotes. 

2. 

General  observationsThe  ECB  welcomes  the  draft  decree-law  as  it  adapts  the  legal  framework 

for  the  production  of  euro  banknotes  to  Guideline  (EU)  2015/280  of  the  European  Central  Bank 
(ECB/2014/44) 3,  in  particular  as  regards  the  possibility  for  the  in-house  group  NCBs  to  enter  into 

forms of cooperation to improve the cost-efficiency of euro banknote production. 

1  

2  
3  

Council  Decision  98/415/EC  of  29 June  1998  on  the  consultation  of  the  European  Central  Bank  by  national 
authorities regarding draft legislative provisions (OJ L 189, 3.7.1998, p. 42). 
Diário da República, No 240 Series 1-A, of 14 October 1999. 
Guideline  (EU)  2015/280  of  the  European  Central  Bank  of  13  November  2014  on  the  establishment  of  the 
Eurosystem Production and Procurement System (ECB/2014/44) (OJ L 47, 20.2.2015, p. 29). 

 
 
 
 
 
                                                 
ECB-PUBLIC 

2.2 

In  accordance  with  Articles  1(2)  and  8(2)  of  Guideline  (EU)  2015/282  (ECB/2014/44),  when  a 

separate legal entity is established, in the form of a cooperation between the in-house group NCBs, 

to produce euro banknotes, this entity may only be directly awarded contracts for the production of 

euro  banknotes  if  it  is  jointly  controlled  by  the  in-house  group  NCBs  that  are  party  to  the 

cooperation agreement. These provisions do not require that a certain minimum share in the capital 

of the legal entity concerned be held by the parties to the cooperation agreement.  

2.3  Since  Portuguese  law still  requires the BdP to hold 51% or more of the  share capital of the legal 

entity that produces and/or prints euro banknotes, the ECB understands that this requirement must 

be  eliminated  in  order  to  facilitate  the  BdP’s  participation  in  the  forms  of  mutual  cooperation 

between Eurosystem NCBs provided for in Guideline (EU) 2015/280 (ECB/2014/44). 

3. 

Specific observations 

3.1  According  to  the  new  Article  2  of  Decree-Law  400/99,  as  amended  by  the  draft  Decree-Law,  the 

activity  of  producing  and  printing  euro  banknotes  may  be  carried  out  by  the  BdP,  within  the 

Eurosystem,  either  directly  or  through  the  limited  liability  company  Valora  –  Serviços  de  Apoio  à 

Emissão Monetária, SA.,  or any  other legal entity that the  BdP establishes for this purpose, or  in 

which it acquires a capital holding. 

3.2  The ECB understands the reference to ‘within the Eurosystem’ as meaning that the production and 

printing  of  euro  banknotes,  regardless  of  whether  it  is  done  directly  by  the  BdP  or  not,  must  be 

conducted  in  full  compliance  with  the  Eurosystem’s  rules,  such  as  those  laid  down  by  Guideline 

(EU) 2015/580 (ECB/2014/44). 

3.3 

In  this  respect,  the  ECB  notes  that  a  more  precise  reference  to  the  applicable  ECB  Guidelines 

would  clarify  the  interpretation  of  Article  2  of  Decree-Law  400/99,  as  amended  by  the  draft 

Decree-Law.  In  order  to  make  a  general  reference  to  the  applicable  ECB  legal  framework  that 

would  take  into  account  any  future  legislative  changes,  it  may  be  useful  to  include  a  general 

reference  to  the  Eurosystem’s  legal  framework  for  the  production  and  procurement  of  euro 

banknotes. 

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

Done at Frankfurt am Main, 23 November 2015. 

[signed] 

The President of the ECB 

Mario DRAGHI 

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