Opinion of the Commission on the amendments proposed by the European Parliament to the Council's common position on the proposal for a Council Regulation (EC) on denominations and technical specifications of euro coins intended for circulation
Date: 1998-01-13
Institutions: European Commission
Subjects: Economic and Monetary Union, European Monetary Institute, euro, single monetary policy, technical specification

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels,  13.01.1998 
COM(1998) 17  final 

97/0154 (SYN) 

OPINTON OF THE COMMTSSION 
on the amendments proposed by the European Parliament 
to the Council's common position on the 

proposal  for a 
COUNCIL REGULATION (EC) 

on denominations and technical specifications of euro coins intended for circulation 

(presented by the Commission pursuant to Article  189 c (d) of the EC Treaty) 

1.  Introduction 

On  29  May  1997,  the  Commission  adopted  its  initial  proposal  on  denominations  and 
technical  specifications  of  euro  coins  (COM  (97)247  final).  Following  the  opinion  of  the 
European  Parliament  at first  reading,  the Commission  adopted, on  14 November  1997, its 
amended proposal COM (97)615 which included some of the amendments requested by the 
European  Parliament.  On  20  November  1997,  the  Council  adopted  its  common  position 
which  reflected  the  Commission  amended  proposal  with  some  changes  aimed  at  adding 
further  clarification. The Commission has stated its full  support to the common position in a 
Communication to the European Parliament of the same day (SEC (97) 2202 final). 

On  17  December  1997,  the  European  Parliament  adopted  on  second  reading  five 
amendments to the Council  common position. 

The  Commission  is  not  in  a  position  to  accept  any  of  the  amendments  to  the  common 
position  decided  by the European  Parliament  on second  reading. The reasons  for  rejection 
of the amendments are given below. 

Although  the  formal  adoption  of  the  Regulation  can  not  take  place  until  the  decision  on 
participating Member States will have been taken, the Commission presents now its opinion 
in  order  to  allow  for  an  early  political  agreement  on  the  draft  Council  Regulation  as 
presented in the Council common position. 

2.  AMENDMENTS  PROPOSED BY THE  EUROPEAN  PARLIAMENT  ON SECOND READING  AND 

REASONS WHY THEY HAVE NOT BEEN ACCEPTED BY THE COMMISSION 

The  Commission  has  not  accepted  any  of  the  amendments  contained  in  the  decision 
adopted by the European Parliament on second reading for the reason indicated below. 

PROPOSED AMENDMENTS 

COMMISSION'S REASONS 

Amendment 1 

Recital 6a (new) 

Whereas the number of 
denominations together with their 
face value should be based on all 
Member States  experience with their 
national coinage systems and their 
most commonly used petty coins, and 
should take account of the future 
needs of an economy charactenzed by 
an increasing use of electronic 

T he  s y s t em  ag  p r o p o s ed  t a k es  a l r e a dy 

i n t0  a c c o u nt  t he  e x p e r i e n ce  of  t he  c u r r e nt 

c o i ns  h ag  b e en  d e f m ed  in  a  c o n s i s t e nt 

n a t i o n al  c o i n a ge  s y s t e ms  T he  y a l u£  of 
^ 
w ay  w im  ^ 
taking into account the need to give 
c h a n ge  ^ 
of  p r i c es  G i y en  ^ 

y a l ue  of  b a n k n o t es  md 

tQ  a y o id  s y s t e m a t ic  r o u n d i ng 

u n c e r t a i n ty  in 

forecasting 

t he  u se  of  e l e c t r o n ic  m o n ey  in 

| t'he n e xt  y e a r g>  -t .g n pt  p o g s i b le  tQ  t a kg 

PROPOSED AMENDMENTS 

COMMISSION'S REASONS 

money; whereas the new coinage 
system should reflect the views of the 
blind and of the old people both of 
which have insisted on the smallest 
possible number of denominations 
forming a single series in which value 
increases with diameter; whereas, 
because in fiiture large quantities of 
coins may become superfluous as the 
use of electronic money increases, 
coins ought to be made of a material 
which can be recycled easily, such as 
stainless steel; 

Amendment 3 

Recital 8a (new) 

Whereas the denominations 
0.01/0.10/1.00 are the pillars of a 
decimal system of coinage; whereas it 
is possible to reduce the euro coinage 
system by making do without the 
proposed 0.02 and 0.20 euro 
denominations. 

Amendment 2 

ArticL 
New denomination 

^fore Face value: euro 2) 

Face value (euro) 
100 
Diameter in mm. 

this aspect into consideration when 
proposing the new system. 

The reference to stainless steel in the last 
sentence as an example of material easily 
recyclable is incoherent with the proposal 
which does not provide for the use of this 
material.  The  materials  proposed  take 
into  account  the  recycling  needs  as well 
as other technical requirements. 

The series of  8 coins is based on the 
current coinage systems in Member 
States.  It is necessary to accommodate 
the rounding needs and the change to be 
given in all Member States taking into 
account the differences in relative prices 
and cash practices.  It is an important 
instrument to protect citizens against 
hidden rounding or other unjustified price 
modifications. In addition, suppressing 
the 2 and 20 cent coins would increase 
the volume of coins to be produced since 
more 1  and 10 cent coins would be 
needed.  Finally, it has to be considered 
that the use of coins is not obligatory. 
Therefore, if a specific coin in a particular 
Member State is not demanded by 
citizens it will simply neither be used nor 
produced. 

A 100 euro face value coin would not be 
consistent with the system of notes and 
coins, since the 100 euro value is already 
foreseen as  a banknote. The duplication 
of the 100 euro value as a coin would be 
an abnormal situation which has no 
technical justification. The logic of the 
systems which is based on the low range 

2> 

PROPOSED AMENDMENTS 

COMMISSION'S REASONS 

Thickness in mm. 

Weight in gr. 

Shape 
Round 

Colour 
Yellow 

Composition 
Gold(l) 

Edge 
Edge lettering Fine milled 

(1) The value of the metal and the 
production cost must not exceed the 
nominal value 

Amendment by separate vote 
Article 1 
Deletion of the 0.20 denomination 

Amendment by separate vote 
Article 1 
Deletion of the 0.02 denomination 

of values being represented by coins and 
values from 5 euro and over being 
represented by banknotes would not be 
respected any more. 

Additionally, it would be very difficult to 
define the size of the coin in a way which 
would be coherent with the rest of the 
series (weight and possibly diameter 
increasing with the value) while ensuring 
that the value of the metal would not 
exceed the nominal value. 
The risk of confusion  particularly for the 
blind would be substantial given the high 
value concerned. 
Such a coin could be issued by those 
Member States who wish and with proper 
authorisation of the ECB, as a collector 
coin  and therefore  would not need to be 
submitted to the harmonisation of 
technical specifications  for the coins 
intended for circulation. 

The  same  reasons  as  for  rejection  of 
amendment  3  apply.  Moreover 
the 
suppression  of  the  20  cent  coin  would 
eliminate  the  "Spanish  flower"  shape 
from  the  system.  This  shape  was  very 
much  welcomed  by  all 
the  groups 
consulted as a key feature  to  differentiate 
coins. 

The  same  reasons  as  for  rejection  of 
amendment 3 apply. 

H-

ISSN 0254-1475 

COM(98) 17 final 

DOCUMENTS 

EN 

09  01  10 

Catalogue  number  : CB-CO-98-017-EN-C 

ISBN 92-78-30169-8 

Office  for OfFicial Publications of the European Communities 

L-2985  Luxembourg