Annexes to COM(2014)277 - Report under Article 12 of Regulation 1210/2010 concerning authentication of euro coins and handling of euro coins unfit for circulation

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dossier COM(2014)277 - Report under Article 12 of Regulation 1210/2010 concerning authentication of euro coins and handling of euro coins unfit for ...
document COM(2014)277 EN
date May 20, 2014
Annex II.

4.2.1. Total number of coins processed in 2012 for the three highest denomination On the basis of Article 3 the institutions[6] implement the authentication obligation by use of coin-processing machines included on the list of ETSC designed to verify that euro coins are authentic and fit for circulation. The total number of coins processed by coin-processing machines in 2012 for the three highest denominations (2 euro, 1 euro and 50 eurocent) amounts to 9 845 834 296.[7] This amount represents 58,82% of the amount of coins in circulation.[8] 4.2.2. Total number of on-the-spot controls carried out

According to Article 6 of the Regulation Member States shall perform annual on-the-spot controls in "institutions" with a view to verifying, through detection tests, the proper functioning of a representative number of coin-processing machines used.

A total of 220[9] on-the-spot controls were carried out by Member States in 2012. The number of controls reported varied considerably between 1 and 76 controls per Member State. This could be explained by the size of the market and the way the market in a particular Member State is organised with respect to cash-processing. In some Member States the entire amount of coins is processed by a single cash-in-transit company and in others, for instance, by individual commercial banks. Four Member States (Greece, Italy, Luxembourg and Malta) have reported no controls. They will be invited to improve their reporting or to introduce the control mechanisms if not yet done so.

4.2.3. Total number of coin-processing machines checked

A total of 315[10] coin-processing machines has been checked and 70,15 %[11] of them demonstrated conformity with specifications. For the machines deemed non-compliant, corrective measures referred to in Article 6(7) of the Regulation should have been carried out.

4.2.4. Total volume of coins processed by coin-processing machines checked

Unless a notification for a derogation was received by the Commission as stipulated in Article 6(5) of the Regulation the Member States have the obligation according to Article 6(3) to check the coin-processing machines which have processed at least 25 % of the total cumulated net volume of the three highest denominations of euro coins issued by that Member State from the introduction of euro coins until the end of 2011. 

On the basis of the data extracted from the ECB database on the net issuance per Member State from the introduction of the euro until the end of 2011 the following Member States complied with the criteria of 25% referred to in Article 6(3): Belgium, Estonia, Spain, France, Ireland, The Netherlands, Portugal and Slovenia[12] (see Annex III).

Germany and Slovakia applied the derogation referred to in Article 6(5) and complied with the lower threshold of 10%.[13]

The total volume of coins processed by coin-processing machines which were checked by the designated national authorities amounts to 6 117 955 983.[14] This represents 62,13% of the volume of coins processed in 2012.[15]

4.2.5. Total number of suspect counterfeit coins analysed

The total number of suspect counterfeit coins analysed refers to all suspect coins sent to the Coin National Analysis Centres (CNACs) in individual Member States for analysis. The total number of suspect counterfeit coins analysed amounts to 567 054[16] coins. The total number of counterfeit coins detected in circulation amounts to 180 139 coins[17].

4.2.6. Total number of unfit coins reimbursed

Member States shall reimburse or replace euro coins that have become unfit due to long circulation or accident or that have been rejected during the authentication procedure for any other reason. Member States may refuse reimbursement of euro coins unfit for circulation which have been altered either deliberately or by a process that could be reasonably expected to have the effect of altering them, notwithstanding reimbursement of coins collected for charitable purposes, such as "fountain coins".

The total number of unfit coins reimbursed amounts to 14 002 311[18] coins.

5. Conclusions

The present report is the first report under Article 12(4) of the Regulation. Since the Regulation has been applicable from 1 January 2012, with the exception of Chapter III, the calendar year 2012 was the first year of implementation of the Regulation.

Since not all the reports have been received[19], the Commission will take the necessary steps to remind the Member States of the Euro-zone area of the obligation to timely comply with the requirements under Regulation 1210/2010.

Based on the information reported it can be concluded that the authentication procedure in the "institutions" seems to be in place in the majority of euro area Member States and that 12 out of 17 Member States of the euro area carry out controls of the correct implementation of the authentication obligation by the "institutions" referred to in Article 6 of Regulation 1338/2001.

However, a further fine-tuning of the reporting obligation by Member States is necessary to allow the Commission to draw up a comprehensive picture of the authentication procedures put in place in Member States. The reports from Member States do not reach the desired level of completeness and homogeneity necessary for a detailed assessment by the Commission. Further harmonisation and improvement of the reporting will be discussed in the framework of the existing experts group (Counterfeit Coins Experts Group) and will be detailed in the ETSC Guidelines in view of future reports.

[1] OJ L339, 22.12.2010, p. 5.

[2] OJ L 181, 4.7.2001, p. 6.

[3] Commission Decision of 29 October 2004 establishing the European Technical and Scientific Centre (ETSC) and providing for coordination of technical actions to protect euro coins against counterfeiting. OJ L 19 21.1.2005, p. 73.

[4] Only 7 euro area Member States submitted their reports within the deadline of 15.02.2013.

[5] See Annex I.

[6] Article 2(d) of Regulation 1210/2010 in conjunction with Article 6(1) of Regulation 1338/2001.

[7] See Annex I.

[8] Calculated on the basis of net issuance of 16 737 875 000 coins (Source: ECB Currency information system report of December 2012). It should be noted however that some coins might have been checked several times.

[9] See Annex I.

[10] See Annex I.

[11] See Annex II.

[12] Italy, Luxembourg, Cyprus, Malta and Austria did not comply. 

[13] Greece asked for a derogation but did not comply with the lower threshold since it did not report any controls.

[14] See Annex I.

[15] Based on the figure under point 4.2.1.

[16] See Annex I.

[17] Source: ETSC annual report "The protection of the euro coins in 2012".

[18] See Annex I.

[19] As indicated in section 4.2, 16 Member States were able to comply with the obligation to submit a report and

    only Finland was not able to comply.

ANNEX I

Summary table

Total number of coins processed in 2012 for the three highest denomination || 9 845 834 296

Total number of on-the-spot controls carried out || 220

Total number of coin-processing machines checked || 315

Total volume of coins processed by coin-processing machines checked || 6 117 955 983

Total number of suspect counterfeit coins analysed || 567 054

Total number of unfit coins reimbursed || 14 002 311

ANNEX II

|| BELGIUM || GERMANY || ESTONIA || GREECE || SPAIN || FINLAND || FRANCE || IRELAND || ITALY || CYPRUS || LUXEMBOURG || MALTA || NETHERLANDS || AUSTRIA || PORTUGAL || SLOVENIA || SLOVAKIA || TOTAL

Number of coins processed in 2012 for three highest denomination (total) || 486985772 || 2158711390 || N.R. || 123177000 || 1913000000 || N.R. || 2418826479 || 240833014 || N.R. || 29239528 || N.R || 28181096 || 699911400 || 810850218 || 650626705 || 56488612 || 229003082 || 9845834296

50 eurocent || 155031973 || 608187040 || N.R. || 37234000 || N.R. || N.R. || 672621642 || 70647321 || N.R. || 9527402 || N.R || 9381309 || 245532913 || 198529871 || 268397041 || 18681666 || 76436262 ||

1 euro || 172721681 || 746309325 || N.R. || 47934000 || N.R. || N.R. || 985331089 || 85410386 || N.R. || 10364864 || N.R || 10266580 || 227724440 || 367735020 || 289415549 || 21273010 || 73573052

2 euro || 159232118 || 804215025 || N.R. || 38009000 || N.R. || N.R. || 760873748 || 84775307 || N.R. || 9347262 || N.R || 8533207 || 226654047 || 244585327 || 92814115 || 16533936 || 78993768

Number of controls carried out || 3 || 76 || 1 || 0 || 17 || N.R. || 60 || 17 || N.R. || 30 || N.R || N.R. || 6 || 2 || 4 || 1 || 3 || 220

Number of coin-processing machines checked || 12 || 92 || 2 || 0 || 17 || N.R. || 101 || 20 || N.R. || 23 || N.R || N.R. || 25 || 4 || 10 || 2 || 7 || 315

Conform || 12 || 73 || 2 || 0 || 17 || N.R. || 39 || 19 || N.R. || 11 || N.R || N.R. || 25 || 4 || 10 || 2 || 7 || 221

Not conform || 0 || 19 || 0 || 0 || 0 || N.R. || 62 || 1 || N.R. || 12 || N.R || N.R. || 0 || 0 || 0 || 0 || 0 || 94

Volume of coins processed by those machines || 1231858843 || 450153553 || 112510288 || N.R. || 1061000000 || N.R. || 1152028172 || 240833014 || N.R. || 10566301 || N.R || 60632840 || 699911400 || 130700000 || 929366798 || 29918089 || 8476685 || 6117955983

Number of suspect counterfeits analysed || 13462 || 57433 || 224 || 30876 || 1629 || N.R. || 237540 || 3090 || 21933 || 279 || N.R || 708 || 137257 || 10860 || 41604 || 1956 || 263 || 567054

Number of unfit coins reimbursed || 8148940 || 3705000 || N.R. || 101000 || 1193928 || N.R. || 203542 || 2677 || N.R. || 6011 || 2720 || 203368 || 129205 || 229348 || 38426 || 32950 || 80 || 14 002 311

Derogations || NO || YES || NO || YES || NO || N.R. || NO || NO || NO || NO || NO || NO || NO || NO || NO || NO || YES || 3

N.R. = not reported

ANNEX III

|| TOTAL CUMULATED NET VOLUME OF COIN ISSUED (01/01/2002 – 31/12/2011)[1] || VOLUME OF COINS PROCESSED BY COIN-PROCESSING MACHINES CHECKED IN 2012 || PERCENTAGE OF COINS CHECKED vs ISSUED COINS || IN COMPLIANCE (25%)[2]

Belgium || 1 017 677 000 || 1 231 858 843 || 121,04% || YES

Germany || 4 388 635 000 || 450 153 553 || 10,25% || YES[3]

Estonia || 18 185 000 || 112 510 288 || 618,69% || YES

Greece || 480 071 000 || N.R.[4] || / || NO[5]

Spain || 2 832 597 000 || 1 061 000 000 || 37,45% || YES

Finland || N.R. || N.R. || / || /

France || 1 777 448 000 || 1 152 028 172 || 64,81% || YES

Ireland || 440 517 000 || 240 833 014 || 54,67% || YES

Italy || 3 345 815 000 || N.R. || / || NO

Luxembourg || 159 356 000 || N.R. || / || NO

Cyprus || 66 482 000 || 10 566 301 || 15,89% || NO

Malta || 32 880 000 || N.R. || / || NO

Netherlands || 249 189 000 || 699 911 400 || 280,87% || YES

Austria || 810 850 000 || 130 700 000 || 16,11% || NO

Portugal || 417 111 000 || 929 366 798 || 222,81% || YES

Slovenia || 29 488 000 || 29 918 089 || 101,45% || YES

Slovakia || 77 078 000 || 8 476 685 || 10,99% || YES[6]

TOTAL || 16 143 379 000 || 6 117 955 983 || ||

[1] Source: ECB Currency information system report of December 2012. Only positive net issuance is taken into account.

[2] The number of coin-processing machines to be checked annually in each Member States shall be such that the volume of euro coins processed by those machines during that year represents at least 25% of the total cumulated volume of coin issued by that Member States from the introduction of euro coins until the end of the previous year. For a transitional period until 31 December 2014, Member States may decide, after notifying the Commission, that the number of coin-processing machines to be checked annually shall be such that the volume of euro coins processed by those machines during that year represents at least 10% of the total cumulated net volume of coins issued by that Member State from the introduction of the euro coins until the end of the previous year.

[3] Notification to Commission for 10% derogation.

[4] N.R. = not reported.

[5] Notification to Commission for 10% derogation.

[6] Notification to Commission for 10% derogation.