A couple of weeks ago, the EU Commission announced the Commission’s work program 2020. Under Annex 2 and the heading “An economy that works for the population” point 34 proposes “uniform rounding rules”:
“Evaluation of the use of one- and two-euro cent coins and of the possibility to introduce common rounding rules. A possible proposal would introduce common rounding rules to address the challenges related to the use of one- and two-euro cent coins.”
Basically, this means that the EU Commission plans to withdraw one- and two-euro cent coins from circulation. Only the EU member countries Belgium, Finland, Ireland and the Netherlands already use rounding rules. In others, such as Germany, pilot projects for rounding failed as for example in the city of Kleve.
The Mint Directors Working Group (MDWG), the professional committee representing all EU Mints, was “very surprised by this announcement” and recommends in its statement from February 1st 2020 “to seek the consent of the all Member States”. It says that “without an extensive impact study, it would be very premature to continue public information”.
The Austrian Mint on its part, advocates keeping the one- and two-euro cent coins as long as they are in popular demand, which is the case in Austria.
Coins are popular across all age groups and nationalities as the lively collector’s community demonstrates. Many EU Member States have yet to respond to the Commission’s inquiry. It would be sensible for the EU Commission to follow the MDWG’s advice and communicate only once all aspects of the matters, including an impact assessment, are on the table.
Here you can read the Key documents of the Commission’s work program 2020.
This article was first published on the website of Cash Matters and we re-publish it here courtesy of Cash Matters.
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