ANNUAL REPORT 2008 - Polymer Bank Notes of the World

on the Banque centrale du Luxembourg. 46 Theopinions welcomed the strengthening of theBanque centrale du Luxembourg’s financialstability role and the establishment of a legalbasis for the possible extension of emergencyliquidity assistance by the Bank.In the area of payment and settlement systems,the ECB was consulted by Poland on a draftlaw amending the Law on trading in financialinstruments and other legislation. 47 In line withearlier opinions, the ECB recommended expressprovisions concerning the NCB’s competence inthe field of oversight of payment and settlementsystems.With regard to financial supervision, Finlandconsulted the ECB on a draft legislativeproposal on the integration of financial andinsurance supervision. 48 The ECB supported astrengthening of the supervisory structure, butemphasised the need for safeguards forbudgetary arrangements, the reimbursementmechanism, and auditing and reporting. In linewith previous opinions, the ECB stated thatcooperation and information-sharing betweensupervisory authorities and central banks wasessential for the conduct of macro-prudentialmonitoring and the oversight of paymentsystems. In the area of financial stability, theECB was consulted by Poland on a draft lawamending the Law on the Bank GuaranteeFund. 49 The ECB restated the criteria allowingthe NCBs to extend credit to national depositprotection schemes and emphasised theimportance of the effective coordination ofsuch schemes.In the context of the global financial crisis,the ECB issued a large number of opinions 50on national rescue measures concerning stateguarantees, the recapitalisation of distressedbanks, the purchase of banks’ assets and depositguaranteeschemes. In this connection, the ECBemphasised the importance of a coordinatedapproach in compliance with the concertedaction plan adopted on 12 October 2008 by theeuro area Heads of State or Government andwith Community law (in particular with regardto state aid provisions), and stressed that thestate’s role as shareholder should be limitedin time. 51With regard to the introduction of the euro inSlovakia, the ECB was consulted by Slovakiaon draft national legislation on the dual displayof prices and rounding rules. 52 The ECBrecalled the importance of the principles of priceneutrality and continuity of legal instrumentsand recommended adopting an approach thatwas consistent with comparable cases related tomethodologies and practices of rounding.As of 2008, information regarding clear andimportant cases of non-compliance with theobligation to consult the ECB on draft nationaland Community legislation is also included inthe Annual Report. In addition to the reformof the Greek social security system, on whichthe ECB issued an own-initiative opinion asdescribed above, there were six such casesof non-consultation of the ECB on proposednational legislation in 2008.In two cases, the Bulgarian and Cypriotauthorities failed to consult the ECB on legalprovisions providing grounds for dismissal ofthe central bank governor in addition to thoseof the Statute of the ESCB. The BulgarianLaw on prevention and disclosure of conflictsof interests of 16 October 2008 provides thatnon-compliance with its provisions and theexistence of a conflict of interests are groundsfor dismissal of public officials, includingthe Governor, the Deputy Governors and themembers of the Governing Council of Българсканародна банка (Bulgarian National Bank). The46 CON/2008/17 and CON/2008/42.47 CON/2008/20.48 CON/2008/16.49 CON/2008/32.50 CON/2008/44, CON/2008/46, CON/2008/48, CON/2008/50,CON/2008/51, CON/2008/52, CON/2008/54, CON/2008/55,CON/2008/56, CON/2008/57, CON/2008/58, CON/2008/59,CON/2008/60, CON/2008/61, CON/2008/62, CON/2008/65,CON/2008/66, CON/2008/67, CON/2008/68, CON/2008/69,CON/2008/74, CON/2008/75, CON/2008/76, CON/2008/79,CON/2008/80, CON/2008/81, CON/2008/88, CON/2008/89 andCON/2008/92.51 For more details, see Chapter 5.52 CON/2008/23, CON/2008/25 and CON/2008/27.ECBAnnual Report2008133