WRITTEN QUESTION E-1194/02

by Erik Meijer (GUE/NGL) to the Commission

(26 April 2002)

Subject: Consequences of introduction of the euro: failure to exchange national coins and notes which are no longer valid

1. Is the Commission aware that, in a number of Member States belonging to the euro zone, it has been reported that a substantial proportion of national coins and notes, valid only until 28 February 2002, have not been exchanged against the euro, which has been legal tender since 1 January 2002?

2. Does the Commission agree that this clearly is not accounted for merely by coins or notes that have been mislaid or kept for collection purposes, as the total amount of former national currencies not exchanged is far higher than could reasonably have been anticipated?

3. How does the behaviour of citizens in relation to the exchange of currencies differ between the twelve Member States concerned? Could the Commission indicate for each Member State what amount and percentage of coins in circulation up to 31 December 2001 have not been exchanged as of a reference date the same date for all the countries concerned between 1 March 2002 and 1 May 2002? Could it also give the corresponding amounts and percentages for bank notes?

4. Does people's failure to exchange currency point to a lack of confidence in a euro which, within the space of three years, has lost a quarter of its value against the dollar, and/or reflect the hope of a possible return to the old currencies, which it is believed would have given them greater purchasing power against the dollar had the currencies been retained?

5. What steps are being taken to determine the reasons for the failure to exchange currency? Could the Commission present a report to Parliament within a year on those causes?

6. What possibilities does the Commission envisage for compensating in some way the citizens of the countries concerned for the loss of purchasing power arising as a result of the disappearance of part of the money supply?

Answer given by Mr Solbes Mira on behalf of the Commission

(13 June 2002)

1. and 2. It is quite normal for a proportion of notes and coins not to be returned when there is a change of currency (some have been lost, kept by tourists abroad or kept by the public as souvenirs). In the Commission's view it is too early to tell whether there is anything unusual about the volume of notes and coins returned, since the public can still take them to the bank for several months more in most participating Member States and will be able to return them to the Central Bank and/or Treasury for years, if not indefinitely.

3. By 3 May 2002 almost 93 % of national bank notes (in terms of value) had been returned to the Central Banks and counted. The return rate varied on that date from 86.9 % (Luxembourg) to 95.8 % (Greece). Because of delays in counting the coins, there are no recent reliable figures available for them.

4. and 5. The failure to return a proportion of the former national notes and coins can be attributed to the reasons given at 1 above and in no case reflects a lack of trust in the new currency; on the contrary, the public rushed in large numbers to obtain it in the first few hours of 1 January 2002.

6. There is no need for compensation, as the public will continue to be able to exchange without charge any old national coins and notes they may still have for a very long time, if not indefinitely, with the appropriate authorities.