Opinion of the European Central Bank of 5 December 2016 on the transfer of public tasks concerning coins to De Nederlandsche Bank (CON/2016/58)
Date: 2016-12-05
Institutions: European Central Bank
Subjects: Netherlands, central bank, counterfeiting, euro, issuing of currency, money, national law

EN 

ECB-PUBLIC 

OPINION OF THE EUROPEAN CENTRAL BANK 

of 5 December 2016 

on the transfer of public tasks concerning coins to De Nederlandsche Bank 

(CON/2016/58) 

Introduction and legal basis 

On 8 November 2016, the European Central Bank (ECB) received a request from the Minister of Finance 

of  the  Netherlands  for  an  opinion  on  a  draft  ministerial  regulation  (hereinafter  the  ‘draft  ministerial 

regulation’)  and  a  draft  royal  order  (hereinafter  the  ‘draft  royal  order’  and,  together  with  the  draft 

ministerial  regulation,  the  ‘draft  laws’)  relating  to  the  transfer  of  public  tasks  concerning  coins  to  De 

Nederlandsche Bank (DNB). 

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,  second  and  third  indents  of  Article  2(1)  of  Council 
Decision  98/415/EC 1,  as  the  draft  laws  concern  currency  matters,  means  of  payment  and  DNB.  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 

1.1  The  draft ministerial  regulation  amends  the  ministerial  regulation  concerning  the  establishment  of 
the Coin National Analysis Centre (CNAC) 2. It provides that DNB, instead of the Royal Dutch Mint 

N.V. (the ‘Mint’), shall be designated as the CNAC under Article 5 of Council Regulation (EC) No 
1338/20013  and  shall  be  responsible  for  the  examination  by  the  CNAC  of  suspected  counterfeit 

coins. The draft royal order appoints DNB to carry out the tasks of the CNAC.  

1.2  Article 2(a) of the draft royal order reconfirms, for the sake of clarity, DNB’s existing task of putting 

into circulation and recirculation euro coins. The draft royal order also authorises DNB to carry out 

three specific coin-related tasks currently carried out by the Mint, as part of DNB’s responsibility for 

the circulation of coins, namely (b) the withdrawal from circulation of euro coins and ‘special coins 
that hold the status of legal tender’ that are unfit for circulation 4; (c) the demonetisation and sale of 
euro coins, special coins and excess euro coins at the request of the Minister of Finance 5; and (d) 

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2  

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4  
5  

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). 

Regulation of the State Secretary for Finance of 3 December 2001 for the Creation of the National Analysis Centre 
for Coins, Staatscourant 2001/247. 

Council Regulation (EC) No 1338/2001 of 28 June 2001 laying down measures necessary for the protection of the 
euro against counterfeiting (OJ L 181, 4.7.2001, p. 6). 
See Article 2(b) of the draft royal order. 

See Article 2(c) of the draft royal order. 

 
 
 
 
                                                 
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the management of the State’s euro coin stocks and the stamps and models not necessary for the 
production of Dutch euro coins and ‘coins not holding the status of legal tender’6.  

1.3  As  noted  in  the  explanatory  memorandum  accompanying  the  draft  law,  the  main  reasons  for  the 

transfer to DNB of the abovementioned public coin tasks are related to the new strategic direction 

for the State’s shareholding in the Mint. On 22 November 2016 the State’s shares in the Mint were 

sold  to  Groep  Heylen,  which  means  that  the  Mint  will  have  a  private  shareholder  and  it  will  no 

longer  be  appropriate  for  it  to  carry  out  public  coin-related  tasks.  DNB  already  has  a  similar 

responsibility concerning euro banknotes as well as some public tasks in respect of coins, and is 

therefore well positioned to perform these additional tasks relating to coins. 

1.4  As  noted  in  the  Minister  of  Finance’s  request  for  an  opinion,  to  ensure  compliance  with  the 

prohibition of monetary financing an agreement will be concluded between the Ministry of Finance 

and DNB that will provide for sufficient funds to be paid in a timely manner, on the first working day 

of  the  year,  from  the  State  Treasury  to  DNB.  The  amount  to  be  paid  to  DNB  will  fully  cover  the 

costs of the new tasks expected in that year. 

2. 

General observations  

2.1  The  draft  laws  complement  DNB’s  existing  tasks  in  the  field  of  protection  against  counterfeiting 

and,  hence,  do  not  confer  genuinely  new  tasks  in  this  area.  DNB  has  already  been  appointed  to 

carry out the tasks of the National Analysis Centre (NAC), which concern suspect counterfeit euro 
banknotes 7.  

The ECB notes that the protection of the euro against counterfeiting of both banknotes and coins 

will be henceforth in the hands of one single authority, DNB. While DNB acts within the Eurosystem 

framework  with  regard  to  the  protection  of  euro  banknotes,  its  new  euro  coin-related  tasks  are 

conferred upon it as a function other than those specified in the Statute of the European System of 

Central  Banks  and  of  the  European  Central  Bank  (hereinafter  the  ‘Statute  of  the  ESCB’),  which 

shall  be  performed  in  accordance  with  Article  14.4  of  the  Statute  of  the  ESCB  and  shall  not  be 

regarded as forming part of the functions of the Eurosystem. 

2.2  The draft royal order further complements DNB’s existing tasks with respect to the circulation and 

recirculation of euro circulation coins and, hence, does not confer genuinely new tasks.  

3. 

Specific observations 

3.1  Coin terminology 

3.1.1  The ECB notes that the draft royal order makes use of the coin-related terminology used in certain 

existing  provisions  of  Dutch  coinage  legislation,  which  refer  to  euro  coins,  special  coins  that  hold 
the  status  of  legal  tender  and  coins  for  investment  purposes 8.  This  terminology  is  not  consistent 

6  
7  

8  

See Article 2(d) of the draft royal order. 

Royal  Order  of  6  December  2001  for  creation  of  a  National  Analysis  Centre  against  counterfeiting,  Staatscourant 
2001/244.  
See  Dutch  Coin  Act  2002,  Staatsblad  2001/631;  Royal  Order  on  Special  Coins  of  7  January  2002,  Staatsblad 
2002/24. 

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with the terminology established by the relevant Union legislation for euro coins, namely (1) Council 
Regulation (EU) No 729/20149, and (2) Regulation (EU) No 651/2012 of the European Parliament 
and of the Council10. In particular, Article 2 of Regulation (EU) No 729/2014 contains a definition of 

‘circulation coins’, which includes both ‘regular coins’ and ‘commemorative coins’; and Article 1(3) 

of  Regulation  (EU)  No  651/2012  contains  a  definition  of  ‘collector  coins’,  meaning  euro  coins 

intended  for  collection  that  are  not  issued  with  a  view  to  their  entry  into  circulation.  The  ECB 

understands  that,  where  the  draft  royal  order  uses  the  term  ‘euro  coins’,  it  intends  to  refer  to 

circulation  coins,  including  both  regular  coins  and  commemorative  coins.  The  ECB  further 

understands  that  where  the  draft  royal  order  uses  the  terms  ‘special  coins  that  hold  the  status  of 

legal tender’ and ‘coins for investment purposes’, it intends to refer to two specific kinds of collector 

coins, both of which, consistent with Article 5(1) of Regulation (EU) No 651/2012, have the status of 

legal tender only in the Netherlands. The ‘special coins that hold the status of legal tender’ refer to 

collector coins issued in denominations of five, ten, twenty and fifty euro. The ‘coins for investment 

purposes’ refer to collector coins which may be issued pursuant to a 2015 amendment to the Dutch 
Coin Act11. This amendment to the Dutch Coin Act was made to meet a possible demand on a part 

of the general public at that time to convert their savings into pure and standardised precious metal 

products. The quality of the metals contained in these collector coins exceeds even the quality of 

the other collector coins. For the sake of consistency and legal certainty, it would be helpful if the 

terminology  used  in  Dutch  law  for  these  different  kinds  of  coins  could  be  better  aligned  with  the 

terminology used in Union law. 

3.1.2  In accordance with Article 1(3) of Regulation (EU) No 651/2012, euro collector coins are not issued 

with a view to their entry into circulation. Consistent with this, the draft royal order could usefully be 

amended so as to make reference to the sale, rather than the circulation, of collector coins.  

3.2  Prohibition on monetary financing 

3.2.1  The  monetary  financing  prohibition  is  laid  down  in  Article  123(1)  of  the  Treaty  and  replicated  in 

Article 21.1 of the Statute of the ESCB, and prohibits overdraft facilities or any other type of credit 

facility  with  the  ECB  or  the  national  central  banks  (NCBs)  in  favour  of  Union  institutions,  bodies, 

offices  or  agencies,  central  governments,  regional,  local  or  other  public  authorities,  other  bodies 

governed by public law, or public undertakings of Member States. The precise scope of application 
of the monetary financing prohibition is further clarified by Council Regulation (EC) No 3603/93 12. 

3.2.2  Article 128(2) of the Treaty provides that the right to issue euro coins rests with the Member States. 
Consequently, it is up to each Member State to specify the legal issuer of the euro coins 13. In view 

of the fact that the tasks conferred on DNB by the draft laws complement existing tasks of DNB but 

do not constitute genuinely new tasks in the field of protection against counterfeiting and circulation 

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11  

12 

13  

Council Regulation (EU) No 729/2014 of 24 June 2014 on denominations and technical specifications of euro coins 
intended for circulation (OJ L 194, 2.7.2014, p. 1). 

Regulation (EU) No 651/2012 of the European Parliament and of the Council of 4 July 2012 on the issuance of euro 
coins (OJ L 201, 27.7.2012, p. 135). 

See  Article  4a  of  the  Dutch  Coin  Act  2002,  which  followed  from  the  Amendment  Law  on  financial  markets  2015, 
Staatsblad 2014/472. 

Council  Regulation  (EC)  No  3603/93  of  13  December  1993  specifying  definitions  for  the  application  of  the 
prohibitions referred to in Articles 104 and 104b (1) of the Treaty (OJ L 332, 31.12.1993, p. 1). See also paragraph 
3.2.1 of Opinion CON/2014/56. All ECB opinions are published on the ECB’s website at www.ecb.europa.eu. 
See paragraph 2.1 of Opinion CON/2016/4 and paragraph 2 of Opinion CON/2014/56.  

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of  coins,  the  ECB  welcomes  the  Minister  of  Finance’s  clarification  that  an  agreement  will  be 

concluded  between  the  Ministry  of  Finance  and  DNB.  This  agreement  will  provide  for  full 

remuneration, to be paid by the State to DNB in a timely manner at the beginning of each year from 

funds  held  by  the  State  Treasury,  of  the  costs  to  be  incurred  by  DNB  in  carrying  out  the  tasks 
expected in the coming year14.  

3.2.3  For  the  time  being,  the  ECB  is  not  in  a  position  to  assess  the  way  in  which  the  abovementioned 

reimbursement will  be agreed upon. The ECB  would therefore appreciate receiving a copy of the 

draft  agreement  between  the  Ministry  of  Finance  and  DNB  prior  to  its  execution  and  entry  into 
effect15.  

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

Done at Frankfurt am Main, 5 December 2016. 

[signed] 

The President of the ECB 

Mario DRAGHI 

14  
15  

See paragraph 3.2.2 of Opinion CON/2016/4 and paragraph 3.1.9 of Opinion CON/2016/6. 
See paragraph 2.2 of Opinion CON/2016/14. 

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