Proposal for a COUNCIL REGULATION extending to the non-participating Member States the application of Regulation (EU) No …/2018 establishing an exchange, assistance and training programme for the protection of the euro against counterfeiting for the period 2021-2027 (the ‘Pericles IV’ programme)
Date: 2018-05-31
Institutions: Directorate-General for Economic and Financial Affairs, European Commission
Subjects: EU financing, EU programme, counterfeiting, cross-border cooperation, euro, fraud, fraud against the EU

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   EUROPEAN COMMISSION  Brussels, 31.5.2018  COM(2018) 371 final 2018/0219 (APP)  Proposal for a COUNCIL REGULATION extending to the non-participating Member States the application of  Regulation (EU) No …/2018 establishing an exchange, assistance and training programme for the protection of the euro against counterfeiting for the  period 2021-2027 (the ‘Pericles IV’ programme)   
 
 
EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

This proposal provides for a date of application as of 1 January 2021 and is presented for a 
Union  of  27  Member  States,  in  line  with  the  notification  by  the  United  Kingdom  of  its 
intention  to  withdraw  from  the  European  Union  and  Euratom  based  on  Article  50  of  the 
Treaty on European Union received by the European Council on 29 March 2017. 

The Pericles programme is an exchange, assistance and training programme for the protection 
of  the  euro  against  counterfeiting.  The  programme  was  established  by  Council  Decision 
2001/923/EC of 17 December 2001 and its effects were extended to the EU Member States 
that  had  not  adopted  the  euro  as  their  currency  by  Council  Decision  2001/924/EC  of  17 
December  2001.  Subsequent  amendments  to  these  basic  acts  by  Council  Decisions 
2006/75/EC,  2006/76/EC,  2006/849/EC,  2006/850/EC,  Regulation  (EU)  No  331/2014  and 
Council  Regulation  (EU)  2015/7681  have  extended  the  duration  of  the  programme  until  31 
December 2020. 

In its proposal (COM(2018)369), based on Art 133 of the TFEU, the Commission proposes to 
continue the Pericles programme under the post-2020 Multiannual Financial Framework. 

Article 139 of the Treaty on the Functioning of the European Union provides that measures 
governing the use of the euro referred to in Article 133 thereof shall not apply to the Member 
States with derogation. 

However,  the  exchange  of  information  and  staff  and  the  assistance  and  training  measures 
implemented under the Pericles programme should be uniform throughout the Union and the 
requisite  measures  should  therefore  be  taken  to  ensure  the  same  level  of  protection  for  the 
euro in the Member States that do not have the euro as their official currency. The active role 
of  non-participating  Member  States  under  the  current  extension  of  the  Pericles  2020 
programme is relevant and significant. The National bank of Croatia, for instance, organised a 
series  of  conferences  under  the  title  "Balkan  network  for  euro  protection"  gathering  experts 
from South East Europe to reinforce the protection of the euro against counterfeiting in this 
area, known for its distribution and production of euro counterfeits. 

This  proposal  should  extend  the  Pericles  programme  to  the Member  States  of  the  European 
Union not yet using the euro as their single currency. 

2. 

 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY  

Legal basis 

Union's legislation concerning the protection of the euro against counterfeiting falls within the 
scope of Article 133 of the Treaty on the Functioning of the European Union (TFEU). This 
provision provides that the European Parliament and the Council, acting in accordance with 
the ordinary legislative procedure shall, after consultation of the European Central Bank, lay 
down the measures necessary for the use of the euro as the single currency. This provision is 
applicable only to Member States which have adopted the euro as their single currency.  

This proposal is based on Article 352 of the TFEU, which is the legal basis for extending the 
application of the Pericles programme to Member States which have not adopted the euro as 
their single currency.  

1 

Council Regulation (EU) 2015/768 of 11 May 2015 extending to the non-participating Member States 
the application of Regulation (EU) No 331/2014, OJ L121, 14.5.2015, p. 1. 

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 

Subsidiarity (for non-exclusive competence) 

This  proposal  complies  with  the  principle  of  subsidiarity.  The  protection  of  the  European 
single  currency  as  a  public  good  has  a  clear  transnational  dimension,  and  therefore  euro 
protection  goes  beyond  the  interest  and  the  responsibility  of  individual  EU  Member  States. 
Considering the cross-border circulation of the euro and the deep involvement of international 
organised  crime  in  euro  counterfeiting  (production  and  distribution),  national  protection 
frameworks  need  to  be  complemented  by  an  EU  initiative  to  ensure  homogeneous  national 
and international cooperation, and to face possible emerging transnational risks. 

 

 

Proportionality 

The  proposed  Regulation  is  necessary,  suitable  and  appropriate  for  achieving  the 
desired  end.  It  proposes  to  efficiently  strengthen  cooperation  among  the  Member 
States  and  between  the  Commission  and  the  Member  States,  without  restricting 
Member States’ capability to protect the euro against counterfeiting. Action at Union 
level is justified as it clearly assists Member States in collectively protecting the euro 
and  encourages  the  use  of  common  Union  structures  to  increase  cooperation  and 
information exchange between competent authorities2.Choice of the instrument  

A  Regulation  is  considered  the  appropriate legal  instrument  to  define the  framework  on  the 
protection of the euro against counterfeiting. It is in continuity with Council Regulation (EU) 
2015/768 of 11 May 2015 extending to the non-participating Member States the application of 
Regulation (EU) No 331/2014 of the European Parliament and of the Council establishing an 
exchange,  assistance  and  training  programme  for  the  protection  of  the  euro  against 
counterfeiting (the ‘Pericles 2020’ programme). 

3. 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

The  Commission  carried  out  an  ex  ante  evaluation  (SWD(2018)281)  in  the  context  of 
preparing the Regulation (EU) No …/2018 establishing an exchange, assistance and training 
programme  for  the  protection  of  the  euro  against  counterfeiting  for the period  beyond  2020 
(the  'Pericles  IV  programme').  The  evidence  collected  and  presented  as  part  of  this  ex  ante 
evaluation is directly transferrable to the present proposal.  

Stakeholders were consulted on the protection of the euro against counterfeiting as part of the 
Public consultation on EU funds in the area of security. 

4. 

BUDGETARY IMPLICATIONS 

The legislative financial statement attached to this proposal for a Council Regulation sets out 
the budgetary implications and the human and administrative resources needed. This financial 
statement on budgetary implications is identical - except for the legal basis - to the financial 
statement  for  the  proposal  on  a  European  Parliament  and  Council  Regulation  (EU)  No 
…/2018 establishing an exchange, assistance and training programme for the protection of the 
euro against counterfeiting beyond 2020 (the 'Pericles IV programme').  

2 

As stated in recital 13 of Regulation (EU) No 331/2014 of the European Parliament and of the Council   
establishing  an  exchange,  assistance  and  training  programme  for  the  protection  of  the  euro  against 
counterfeiting (the 'Pericles 2020' programme), OJ L 103, 5.4.2014, p. 1.  

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5. 

 

OTHER ELEMENTS 

Implementation plans and monitoring, evaluation and reporting arrangements 

Not applicable 

 

Explanatory documents (for directives) 

Not applicable 

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2018/0219 (APP) 

Proposal for a 

COUNCIL REGULATION 

extending to the non-participating Member States the application of  
Regulation (EU) No …/2018 establishing an exchange, assistance and training 
programme for the protection of the euro against counterfeiting for the  
period 2021-2027 (the ‘Pericles IV’ programme) 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 352 thereof, 

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national Parliaments, 
Having regard to the consent of the European Parliament3, 

Acting in accordance with a special legislative procedure, 

Whereas: 

(1) 

(2) 

Regulation (EU) No …/2018 establishing the 'Pericles IV programme'4 provides that it 
is applicable in the Member States in accordance with the Treaties. Article 139 of the 
Treaty  on  the  Functioning  of  the  European  Union  provides  that  measures  governing 
the  use  of  the  euro  referred  to  in  Article  133  thereof  shall  not  apply  to  the  Member 
States with a derogation. 

However,  the  exchange  of  information  and  staff  and  the  assistance  and  training 
measures  implemented  under  the  Pericles  IV  programme  should  be  uniform 
throughout the Union.  The requisite measures should therefore be taken to ensure the 
same level of protection for the euro in the Member States that do not have the euro as 
their official currency. 

HAS ADOPTED THIS REGULATION: 

Article 1 

The  application  of  Regulation  (EU)  No  …/2018  shall  be  extended  to  Member  States  other 
than the participating Member States as defined in point (a) of Article 1 of Council Regulation 
(EC) No 974/19985. 

Entities  from  those  Member  States  shall  be  considered  eligible  for  funding  when  they  are 
competent  authorities  within  the  meaning  of  Article  9  of    Regulation  (EU)  No  …  /2018 
establishing the 'Pericles IV programme'.  

3 
4 
5 

OJ C…, p.  
See page … of this Official Journal. 
OJ L 139, 11.5.1998, p. 1. 

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Article 2 

This  Regulation  shall  enter  into  force  on  the  day  following  that  of  its  publication  in  the 
Official Journal of the European Union. 

It shall apply from 1 January 2021. 

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels, 

For the Council 
The President 

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