banknotes and coins. the ecb establishes the legal framework that protects euro banknotes, for example. we decide what types of reproduction are permitted9 and, together with the national central banks, clamp down on unauthorised reproductions10. this helps to preserve public confidence in euro cash. we keep a constant eye on costs, in terms of regulation too, to ensure that the provision of cash remains cost - effective. here we have an obligation to the public to increase efficiency even further. we ensure that cash retains its scope for use and we take action if the legal tender status is at risk.. in the legislative field, our efforts to protect and safeguard the currency mainly take the form of ecb opinions on legislative proposals at national or eu level which relate to our tasks. the ecb has to be consulted on all such legislative proposals, 11 especially when they have the effect of limiting the legal tender status of euro banknotes. until 2016, these consultations by member states on limiting the use of cash were a routine exercise. from the first consultations the ecb established the position12 that national measures in this area must : have a legitimate purpose and to that end be proportionate, that is suitable, necessary and adequate. “ suitable ” in this case means that the planned legislative measures will actually be able to achieve their aim, i. e. that they are efficient and effective. on the basis of this position, the ecb has recognised, in particular, the fight against money laundering, terrorist financing and tax evasion as legitimate purposes. there has been no criticism when member states have planned proportionate measures to address these issues. since around 2016, and with the peak i mentioned in 2017, the ecb, with increasing regularity, has had to address in detail the topic of limits to cash payments. we have maintained a consistent position on this and, for the first time, we found ourselves having to comment on measures that were not suitable. these measures involved limiting the use of cash for transactions that are not subject to tax. the national legislator had justified the measures on the grounds that they would help prevent tax evasion. however, limits on non - taxable payments do not help to combat tax evasion13. with due respect for the prerogative of the legislator to evaluate the matter, the ecb must point out such errors of assessment. we also faced for the first time, in the context of a consultation on a very low proposed cash limit,

03. 10. 2016 second financial education day banco de espana / cnmv luis m. linde governor good morning i would like to begin by saying how pleased i am to be participating in this celebration of the financial education day. the purpose of this event is to raise society ’ s awareness of the importance of improving and broadening financial and, more generally, economic knowledge, helping people take decisions that affect many aspects of our lives. at times like the present, characterised by the constant evolution and development of saving and borrowing instruments, the ability to correctly assess the risk and profitability of different financial products is particularly important. indeed, different products may be more or less appropriate depending on an individual ’ s risk exposure profile, age and income. the role of experience when choosing products is limited, since we are frequently faced with new products or products with features that are not well known. i would like to stress that the main purpose of financial education is not to train experts in how to understand complex products, but to help ordinary people with their spending, saving and investment decisions. particular prominence is given in financial education to aspects such as preparing a household budget, prudence when taking decisions, the assumption that higher returns are generally associated with higher risks, and, no less importantly, the time profile of economic decisions, and, specifically, preparation for retirement, which is obviously very important given current demographic trends and the challenges of population ageing. background and current situation of the financial education plan the gestation and promotion of financial education started in 2008 with a project initiated by the national securities market commission and the banco de espana, joined subsequently by the ministry of economic affairs and competitiveness. after its renewal in june 2013, a plan of activities was drawn up for the period 2013 - 2017, demonstrating a clear intention of continuity. the plan addresses two closely related aspects : the assessment and measurement of the financial literacy of young people and of adults. activities in the education system financial literacy consists of knowledge and skills that enable individuals to take informed decisions. one indication of the level of competence relates to young people ( 15 - 16 years old ), and was obtained in 2012 within the framework of the pisa study of financial literacy. from this test, which reflects skills related to the use of means of payment and the understanding of risk, a number of conclusions were drawn, two of which i wish to highlight : 3 / 5 in every country for which information is available, the financial literacy of the youngest generation is not significantly better