PURPOSE: to extend the Pericles programme to Member States not participating in the Euro.

LEGISLATIVE ACT: Council Decision 2006/850/EC extending to the non-participating Member States the application of Decision 2006/849/EC amending and extending Decision 2001/923/EC establishing an exchange, assistance and training programme for the protection of the Euro against counterfeiting (the Pericles programme).

CONTENT: the Council has agreed to extend the Pericles programme until the end of 2013 with a total budget of EUR 7 million. The decision to prolong the Pericles programme is set out in Council Decision 2006/849/EC (for a summary, see CNS/2006/0078).

The purpose of this Council Decision is to extend the application the Pericles programme to Member States other than the participating Member States. This move will allow for the uniform exchange of information, staff and training measures implemented under the Pericles programme. It will also help extend the level of protection for the Euro in the Member States where the Euro is not the official currency.

ENTRY INTO FORCE: the Decision will take effect on 28 November 2006.

The European Parliament adopted by 607 votes in favour to 15 against with 17 abstentions a report drafted by Agustín DÍAZ de MERA GARCÍA CONSUEGRA (EPP-ED, ES) approving the Council proposal on extending the Pericles programme to non-participating Member States.

The committee adopted the report by Agustín DÍAZ de MERA GARCÍA CONSUEGRA (EPP-ED, ES) approving unamended - under the consultation procedure - the proposed Council decision extending to the non-participating Member States the application of Decision 2006/.../EC amending and extending Decision 2001/923/EC establishing an exchange, assistance and training programme for the protection of the euro against counterfeiting (the 'Pericles' programme).

Opinion of the European Central Bank: o n 12 June 2006, the European Central Bank (ECB) received requests from the Council of the European Union for opinions on two proposed measures: a proposal for a Council decision amending and extending Decision 2001/923/EC establishing an exchange, assistance and training programme for the protection of the euro against counterfeiting (the ‘Pericles’ programme) (see CNS/2006/0078 ); a proposal for a Council decision extending to the non-participating Member States the application of Council Decision amending and extending Decision 2001/923/EC establishing an exchange, assistance and training programme for the protection of the euro against counterfeiting (the ‘Pericles’ programme)).

The ECB has two specific observations on the proposed legislation, in line with some of the observations made in Opinion CON/2005/22 of 21 June 2005 regarding the extension of the temporal and material scope of the Pericles programme.

It is important for Community legislation to ensure that the extension of the Pericles programme is adequately linked to the timing of :

- the introduction of the euro in the new Member States;

- the issue of the second series of euro banknotes.

The ECB confirms that an extension to 31 December 2013 would provide for such an adequate link.

In order to avoid overlaps and ensure consistency and complementarity of actions under the Pericles programme, and to take advantage of the ECB's expertise in the field, it would be beneficial for the Commission, the ECB and Europol to jointly examine initiatives to be funded under the Pericles programme, and for the selection decision to require the consultation and due consideration of the views of the two latter bodies, within the framework of the Steering Group they already established with the aim of developing a common strategy against counterfeiting of the euro.

PURPOSE : to extend to the non-participating Member States the application of the proposed Decision amending and extending Decision 2001/923/EC establishing the PERICLES programme.

PROPOSED ACT : Council Decision.

CONTENT : PERICLES, the Community programme for exchange, assistance and training in the protection of the euro against counterfeiting, was established by Council Decision 2001/923/EC, (‘the Pericles Decision’), as amended and extended by the Council Decision 2006/75/EC. Article 13(3)(b) requires a detailed report on the implementation and results of the PERICLES Programme referred to above to be submitted to the European Parliament and the Council by 30 June 2006. The Commission presents a report responding to that requirement, and a proposal to amend the Decision.

Since early Summer 2003, the number of counterfeit euro banknotes detected in circulation has stabilised at about 50 000 a month, a level below the pre-euro levels, lower than the US dollar and extremely low compared to the nine billion genuine euro banknotes in circulation. At the same time, the number of counterfeit euro coins is continuing to increase but also remains low by historical standards. In addition, the police forces have successfully conducted a number of operations to dismantle workshops and seize large numbers of counterfeit banknotes and coins before they enter into circulation. This overall favourable situation is the result of a long preparation at both legislative and institutional level and demonstrates the high level of cooperation achieved in EU and at international level. The PERICLES programme is playing a significant role in achieving the present results in the protection of the euro and the fight against the crime of counterfeiting, through the exchange of information and the development of cooperation. Continuing vigilance is needed in order to maintain and build on the results currently achieved in the fight euro counterfeiting. Training and technical assistance plays an important role in this respect, hence the need to continue the PERICLES programme.

This proposal is closely linked to the concurrent proposal that Council Decision 2001/923/EC now be extended until 31 December 2013. (Please see procedure reference CNS/2006/0078 ). The new end-date is 31 December 2013, and the reference amount is set at EUR 7 million. The date of application will be 1 January 2007. This proposal provides that the application of that proposed Decision shall be extended to Member States other than the participating Member States as defined in the first indent of Article 1 of Council Regulation 974/1998/EC.

For further information concerning the financial implications of this measure, please refer to the financial statement.

PURPOSE : to extend to the non-participating Member States the application of the proposed Decision amending and extending Decision 2001/923/EC establishing the PERICLES programme.

PROPOSED ACT : Council Decision.

CONTENT : PERICLES, the Community programme for exchange, assistance and training in the protection of the euro against counterfeiting, was established by Council Decision 2001/923/EC, (‘the Pericles Decision’), as amended and extended by the Council Decision 2006/75/EC. Article 13(3)(b) requires a detailed report on the implementation and results of the PERICLES Programme referred to above to be submitted to the European Parliament and the Council by 30 June 2006. The Commission presents a report responding to that requirement, and a proposal to amend the Decision.

Since early Summer 2003, the number of counterfeit euro banknotes detected in circulation has stabilised at about 50 000 a month, a level below the pre-euro levels, lower than the US dollar and extremely low compared to the nine billion genuine euro banknotes in circulation. At the same time, the number of counterfeit euro coins is continuing to increase but also remains low by historical standards. In addition, the police forces have successfully conducted a number of operations to dismantle workshops and seize large numbers of counterfeit banknotes and coins before they enter into circulation. This overall favourable situation is the result of a long preparation at both legislative and institutional level and demonstrates the high level of cooperation achieved in EU and at international level. The PERICLES programme is playing a significant role in achieving the present results in the protection of the euro and the fight against the crime of counterfeiting, through the exchange of information and the development of cooperation. Continuing vigilance is needed in order to maintain and build on the results currently achieved in the fight euro counterfeiting. Training and technical assistance plays an important role in this respect, hence the need to continue the PERICLES programme.

This proposal is closely linked to the concurrent proposal that Council Decision 2001/923/EC now be extended until 31 December 2013. (Please see procedure reference CNS/2006/0078 ). The new end-date is 31 December 2013, and the reference amount is set at EUR 7 million. The date of application will be 1 January 2007. This proposal provides that the application of that proposed Decision shall be extended to Member States other than the participating Member States as defined in the first indent of Article 1 of Council Regulation 974/1998/EC.

For further information concerning the financial implications of this measure, please refer to the financial statement.