Proposal for a Council Regulation (EC) on denominations and technical specifications of euro coins
Date: 1997-05-29
Institutions: European Commission
Subjects: Economic and Monetary Union, European Monetary Institute, euro, single monetary policy, technical specification

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 29.05.1997 
COM(97) 247  final 

97/0154(SYN) 

COMMUNICATION FROM THE COMMISSION 

TO THE COUNCIL. THE EUROPEAN PARLIAMENT AND THE 

EUROPEAN MONETARY INSTITUTE 
DENOMINATIONS AND TECHNICAL SPECIFICATIONS OF EURO COINS 

Proposal for a 

COUNCIL REGULATION (EC) 

on denominations and technical specifications  of euro coins 

(presented by the Commission) 

1. 

Introduction 

On  1 January  1999,  the  euro  will  become  the  single  currency  of  participating  Member 
States. Exchange  rates between  participating  currencies  will be fixed  irrevocably from 1 
January  1999  and  one  single  authority,  the  European  Central  Bank,  will  define  the 
monetary  policy  of the  euro.  The new  euro  notes  and  coins  will begin to  circulate  by 1 
January 2002 at the latest. 

Work on selecting the technical specifications  of the coins (their size, shape, colour, metal 
composition,  edging,  etc.) and their  denominations  is the responsibility  of the Council  to 
the  extent  necessary  to  permit  their  smooth  circulation  within  the  Community.  The 
preparatory work  on the technical  specifications  began in  1992 when a working group of 
the  Mint  Directors  of  Member  States  was  given  a  mandate  by  Finance  ministers  of 
Member States to study the possibilities and produce a complete proposal. On the basis of 
the  technical  work  provided  by  the  Mint  Directors  and  after  consulting  various  user 
organisations,  the  European  Commission  is  now  formally  presenting  a  proposal  to  the 
Council in the form of a Regulation under Article  105a (2) of the Treaty. 

By proposing the Regulation at this stage, the Commission is following  a procedure used 
in other Regulations relating to  the introduction  of the single currency to  allow for  early 
political  agreement,  such that  its formal  adoption  in  1998 will be  a mere  formality.  The 
Commission suggests seeking political endorsement of the draft  Regulation at the meeting 
of  the  European  Council  in  Amsterdam  in  June  1997.  The  remaining  stages  of  the 
decision-making  procedure  (co-operation  with  the  European  Parliament  in  accordance 
with  Article  189c  and  consultation  of the EMI)  will  also  proceed  on the  same  informal 
basis, allowing coin production to begin before the Regulation enters into force. 

A  timely  endorsement  is  particularly  important.  The  European  Council  in  Madrid  in 
December  1995  agreed  that  euro  coins  would  be  introduced  by  1 January  2002  at  the 
latest.  An earlier date of introduction  of notes and  coins is not  to be ruled  out. The Mint 
Directors  estimate  that  producing  the  necessary  quantities  of  euro  coins  will  take  three 
years.  Blank  procurement  procedures  should  be  launched  at  least  six  months before  the 
start of coin production, and in order to prepare the necessary materials for the blanks, the 
technical specifications must be known at least six months before that. 

The complete proposal is attached  as annex  1. The guiding principles behind the proposal 
are that the coins should be easy to use and recognise,  acceptable to  all major  groups of 
users and safe. To ensure that all these often  competing aims were met, user groups were 
thoroughly consulted. 

2. 

Denominations 

There will be eight denominations  (1,  2, 5,  10, 20 and  50 cents and  1 and 2 euro). These 
were chosen in agreement  with the EMI. The aim is to create a sequence which, together 
with the denomination  of notes (from  5 euro to 500 euro), will allow payments by cash to 
be as easy as possible. 

3. 

Tactile characteristics to help recognition 

It  is crucial that  the coins are easy to  use and  recognise.  The  series of coins is split  into 
three  sequences  which  vary  by  shape,  weight,  colour  and  thickness.  Several  innovative 

features  were  included  to  help  all  consumers,  but  particularly  the  blind  and  visually 
impaired, to recognise the coins from each other, notably: 

differences  in the edging of each consecutive coin in the series; 

a groove on the edge of the 2 cent coin; 

a "Spanish flower" shape for the 20 cent coin. 

4. 

Choice of metal 

The  choice  of  metal  has  important  consequences  for  both  security  and  health.  The  vast 
majority  of Member  States use nickel in their coins (around  75% of the coins). However, 
in 1994 the Council and the European Parliament  adopted a directive (94/27/CE) limiting 
the use of nickel in certain products in recognition that nickel  can be a cause of allergies 
under certain  conditions.  Although  coins are excluded from this directive,  some Member 
States already use a nickel-free  alloy called  Nordic  Gold  in their  current  coinage  system 
for reasons of public health. It seems desirable to reduce the nickel content  of coins when 
moving to a new coinage system. As a result, six out of the eight coins are entirely nickel-
free.  Only  the  1 and  2  euro  coins,  which  represent  around  8%  of  the  total  amount  of 
coins, would contain some nickel. 

Because of their high values, the  1 and 2 euro need additional  security features  to  reduce 
the scope for fraud. Two special features  are proposed: first  the coins are in two colours, 
and second they use a "sandwich" technique whereby the coin is made in three layers. The 
technical  complexities  involved  mean  that,  with  present  technology,  it  would  be  very 
difficult  to test,  develop and produce an alternative to nickel  alloys for  these coins within 
the deadline for the introduction of euro coins before  1  January 2002. 

Nevertheless,  out  of  concern  for  public  health,  the  Commission  will  use  the  CRAFT 
project  of the fourth  framework  programme  for  further  research  regarding  the  treatment 
of  metals  allowing  the  allergenic  effects  of  nickel  to  be  neutralised.  Furthermore,  the 
Commission  will  consult  the  Scientific  Committee  for  Toxicity  and  Ecotoxicity  of 
Chemical Compounds and make an evaluation of its results. 

5. 

Consultations 

Extensive  consultations  were  held  with  all the  main  user  groups,  in  particular  the  Euro 
Working  Group  of the  Consumer  Committee  (including the  blind  and  visually  impaired) 
and representatives of the vending machine industry. 

6. 

Designs 

The designs of the face of the coins are being chosen under a different  procedure. Member 
States  exercising  their  competence  decided  that  the  coins  will  have  one  common  face 
showing  a  European  subject  and  the  value,  and  one  face  showing  a  national  symbol 
surrounded by the  12 stars of the Union. Each Member  State is  responsible for  choosing 
the corresponding national face. A European competition co-ordinated by the Commission 
is underway to select the common face.  The winning design will be chosen at the meeting 
of the European Council in Amsterdam in June  1997 and announced to the public shortly 
afterwards. 

EXPLANATORY  MEMORANDUM 

1.  INTRODUCTION -  GENERAL CONSIDERATIONS 

Principal objectives of the proposals 

According to Art.  105 a(2) of the Treaty, the responsability of issuing coins is up to 
Member States. However, the Council may adopt measures to harmonize the 
denominations and technical specifications of coins to permit their smooth 
circulation within the Community. 

The European Council in Madrid in December  1995 agreed that euro coins would 
be introduced by  1  January 2002 at the latest. An earlier date of introduction is not 
to be ruled out. The European Mint Directors estimate that that three years will be 
necessary for producing the quantities of euro coins required on the introduction 
date  The technical characteristics of the euro coins must be known at least one year 
before production may start to allow the time necessary for blank procurement. 

Article 105 a(2) applies from the beginning of the third stage of economic and 
monetary union. According to the Treaty the decision is to be taken by participating 
Member States. 

By proposing the Regulation at this stage the Commission aims at allowing for an 
early political agreement, such that its formal adoption will be a mere formality. 

The objective of the proposal for a Council Regulation is to define  uniform 
specifications for the first series of coins in euro in order to guarantee their smooth 
circulation within the Community. 
The proposed specifications have been  defined with the aim to ensure that coins are 
easy to use and recognise, acceptable to the major groups of users and safe. 

2.  COMMENTS ON THE ARTICLES OF THE PROPOSAL FOR A COUNCIL REGULATION 

ON DENOMINATIONS AND TECHNICAL SPECIFICATIONS OF THE EURO COINS 

Article 1 

This  articles  provides  for  the  denominations  and  techical  characteristics  of  the  eight 
euro coins. 

The denominations have been fixed to ensure that cash payments of amounts expressed 
in euro and cent can be made easily. 

k 

The diameter  and  weight  of the proposed  coins  increase with  increasing  value  of the 
coin. 

Diameter,  thickness and weight  are inter-dependent  variables which  are related  to the 
coin  composition.  A  change  in the  choice  of  the  material  might  therefore  modify  at 
least one of these variables. 

The proposed  shapes, colours  and  edge milling  are aimed to  facilitate  recognition  of 
the coins. 

The  composition  and  the  edge  lettering  features  guarantee  the  security  of  the  coins 
against  counterfeiting. 

Article 2 

This  article  determines  the  entry  into  force.  The  Regulation  will  enter  into  force  on 
1 January 1999. 

Proposal for a 

COUNCIL REGULATION (EC) 

on denominations and technical specifications of euro coins 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  treaty  establishing  the  European  Community,  and  in  particular 
Article 105a (2) thereof, 

Having regard to the proposal from the Commission, 

Having regard to the opinion of the European Central Bank, 

In cooperation with the European Parliament, 

(1)  Whereas,  at  the  meeting  of  the  European  Council  in  Madrid  on  15  and  16 
December  1995  the  scenario  for  the  changeover  to  the  single  currency  was 
adopted which provides for introduction of coins in euro by  1  January 2002 at the 
latest; 

(2)  Whereas  Article  105a  (2)  of  the  Treaty  states  that  "Member  States  may  issue 
coins  subject  to  approval  by  the  ECB  of  the  volume  of the  issue.  The  Council 
may, acting in accordance with the procedure referred  to in Article  189c and  after 
consulting  the  ECB,  adopt  measures  to  harmonize  the  denominations  and 
technical specifications  of all coins intended for circulation to the extent necessary 
to permit their smooth circulation within the Community"; 

(3)  Whereas the European  Monetary  Institute  has indicated that  euro banknotes will 
range from 5 euro to 500 euro; whereas the denominations of banknotes and coins 
will need to allow that cash payments of amounts expressed  in euro and cent can 
be made easily; 

(4)  Whereas the EC Mint Directors  were mandated  by the Monetary  Committee  to 
study  and  elaborate  a complete  proposal  for  a European  single  coinage  system; 
whereas they submitted  a proposal  in November  1996 then  a revised  proposal in 

February  1997 
specifications 
(diameter,  thickness,  weight,  colour,  composition  and  edge)  of  the  new  euro 
coins. 

the  denominations  and 

indicating 

technical 

(5)  Whereas  consultations  with  consumers  associations,  the  European  Blind  Union 
and  representatives  of  the  vending  machines  industry  have  been  carried  out  to 
take into account  the specific  requirements of important  categories  of coins users; 
whereas,  in  order  to  ensure  a  smooth  changeover  to  the  euro  and  facilitate 
acceptance  of the  new  coinage  systems  by  users,  easy  distinction  between  coins 
through visual and tactile characteristics will need to be guaranteed; 

(6)  Whereas  some  special  security  features  are needed  to  reduce  the  scope  for  fraud 
for  the  1  and  2  euro  given  their  high  value;  whereas  the  use  of  a  technique 
whereby  coins  are  made  in  three  layer  and  the  combination  of  two  different 
colours  in  the  coin  are  considered  to  be  the  most  efficient  security  features 
available today; 

(7)  Whereas in  1994  the Council  and the European Parliament  adopted  a  Directive 
(94/27/CE) limiting the use  of nickel in certain products  in recognition that  nickel 
could  be  a  cause  of  allergies  under  certain  conditions;  whereas  coins  are  not 
covered  by this Directive; whereas  nevertheless  some Member  States  already  use 
a nickel-free  alloy  called  Nordic  Gold  in their current  coinage  system  for  reasons 
of  public  health; whereas  it  seems  desirable  to  reduce  the  nickel  content  of  coins 
when moving to a new coinage system, 

HAS ADOPTED THIS  REGULATION: 

1 

Article 1 

The first series of euro coins will include eight denominations in the range from  1 cent 
to 2 euro with the following technical  specifications: 

Face 
value 
(euro) 

Diameter 
in mm. 

Thickness 
in mm. 

Weight 
ingr. 

Shape 

Colour 

Composition 

Edge 

2 

25.75 

1.95 

8.5 

Round 

Ext. part: 

while 

Inl.part: 

yellow 

1 

23.25 

2.125 

7.5 

Round 

Ext. part: 

yellow 

Int.part: 

White 

Copper-nickel 
(Cu75Ni25) 

three-layer 

Edge lettering 

Fine milled 

Nickel-brass/Nickel/ Nickel-
brass 
CuZn20Ni5/Nil2/CuZn20Ni5 

Nickel-brass 
(CuZn20Ni5) 

three-layer 

Interrupted 
milled 

Cu75Ni25/Ni7/Cu75Ni25 

0.50 

24.25 

1.69 

7 

Round 

Yellow 

Nordic Gold 

Coarse 
milled 

Cu89A15Zn5Snl 

0.20 

22.25 

1.63 

5.7 

"Spanish 
flower" 
shape 

Yellow 

Nordic Gold 

Plain 

Cu89A15Zn5Snl 

0.10 

19.75 

1.51 

4.1 

Round 

Yellow 

Nordic Gold 

Coarse 
milled 

Cu89A15Zn5Snl 

0.05 

21.75 

0.02 

18.75 

1.41 

1.36 

3.9 

Round 

Red 

Copper covered steel 

Smooth 

3 

Round 

Red 

Copper covered steel 

Smooth with a 
groove 

0.01 

16.25 

1.32 

2.2 

Round 

Red 

Copper covered steel 

Smooth 

This  Regulation shall enter into force on  1  January  1999. 

Article 2 

ISSN 0254-1475 

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