EN 
 
 
OPINION OF THE EUROPEAN CENTRAL BANK 
of 4 August 2008  
at the request of the Danish Ministry of Economics and Business Affairs 
on a draft executive order on withdrawal of the 25 øre coin as legal tender  
(CON/2008/35) 
 
Introduction and legal basis  
On 10 July 2008 the European Central Bank (ECB) r eceived a request from the Danish Ministry of 
Economics and Business Affairs for an opinion on a dr aft executive order on withdrawal of the 25-øre 
coin as legal tender (hereinafter the ‘draft executive order’). 
The ECB’s competence to deliver an  opinion is based on Article 105(4) of the Treaty establishing the 
European Community and the second indent of Ar ticle 2(1) of Council Decision 98/415/EC of 
29 June 1998 on the consultation of the European Ce ntral Bank by national authorities regarding draft 
legislative provisions1, as the draft executive order relates to m eans of payment. In accordance with the 
first sentence of Article 17.5 of the Rules of Pro cedure of the European Central Bank, the Governing 
Council has adopted this opinion. 
 1.  Purpose of the draft executive order 
1.1 Under Section 3 of the Law on coins
2, the Minister for Economic and Business Affairs, following 
negotiations with Danmarks Nationalbank, may d ecide that coins will cease to be legal tender. 
According to the draft executive order, referring to  negotiations with Danmarks Nationalbank, the 
25 øre coin will cease to be legal tender from 1 October 2008. Danmarks Nationalbank has argued 
that as a result of inflation and pay increases th e purchasing power of the 25 øre coin has become 
negligible so that it no longer functions as a useful  means of payment. In addition, the costs of 
minting the coin exceeds its value, and as it is cos tly for banks and retailers  to handle, as pointed 
out by their representative organisations, there are good reasons to make the 50-øre coin the smallest Danish coin denomination.  
1.2 While the 25 øre coin will cease to be legal te nder from 1 October 2008, the draft executive order 
provides that the coins may still be encashed at Danmarks Nationalbank for a period of three years 
after it has ceased to be legal tender. 
                                                 
1  OJ L 189, 3.7.1998, p. 42.  
2  Lov nr. 817 af 21. december 1988, Møntlov . 
2 1.3 As a consequence of the 25 øre coin ceasing to be legal tender and pursuant to Section 5 of the Law 
on coins, the draft executive order amends the rounding rules from 1 October 2008, with the total 
amount of cash payments to be rounded up or down to the nearest 50 øre, unless otherwise agreed. As with the existing rounding rules, only the tota l amount is to be rounded, and not the price of 
each item, and for electronic payments the exact amount is payable without rounding.  
 2. General observations  2.1 The ECB understands that the Ministry of Ec onomic and Business Affairs issued a press release on 
27 March 2008 announcing the decision to abolish the 25 øre coins from 1 October 2008, which also contained a reference to Danmarks Nationa lbank’s website with further details about the 
abolishment and explanation of the new rounding rules.  
2.2 As stated on Danmarks Nationalbank’s website, the number of coins is based on tradition, and is 
supported by surveys of the most suitable number of coins in a well-functioning series. The latest change to the series of Danish coins was made  in 1989, when the five and 10 øre coins were 
withdrawn as legal tender, and amended rounding rules were intr oduced. According to Danmarks 
Nationalbank, previous experience from Denmark, Sweden and Norway has shown that taking out 
of circulation small coins which have ceased to have self-supporting purchasing power does not 
lead to higher prices. 
2.3 The ECB notes that whereas the Law on coins re quires a minimum period of notice of three 
months, the draft executive order sets a generous period of three years in which the old coins may be exchanged at Danmarks Nationalbank. The ECB also notes that the Danish Bankers Association 
has recommended that its members encash 25 øre coins after 1 October without charging a fee. 
2.4 The ECB has no specific comments on the draft executive order. 
 This opinion will be published on the ECB’s website.    Done at Frankfurt am Main, 4 August 2008. 
 
[signed] 
 
The President of the ECB 
Jean-Claude TRICHET