WRITTEN QUESTION E-0599/00 by Hugues Martin (PPE-DE) to the Commission. Exchanging banknotes in national currencies for euro.
Date: 2000-02-29
Institutions: European Parliament, Provisional data
Subjects: money-market liquidity, single monetary policy, tax avoidance, tax harmonisation, third stage of EMU

28.12.2000

EN

Official Journal of the European Communities

C 374 E/117

The Commission is currently preparing the revision of Directive 97/66/EC of the Parliament and of the
Council of 15 December 1998 concerning the processing of personal data and the protection of privacy in
the telecommunications sector (2). The provisions concerning privacy will attempt to take into account the
current and future technological developments.

(1) Debates of the European Parliament (March 2000).
(2) OJ L 24, 30.1.1998.

(2000/C 374 E/137)

WRITTEN QUESTION E-0599/00

by Hugues Martin (PPE-DE) to the Commission

(29 February 2000)

Subject: Exchanging banknotes in national currencies for euro

On 1 January 2000, all cash held in the national currencies of the countries in the euro-zone must be
converted into euro. Many citizens keep sums of money in cash at home, the origins of which are
perfectly legal, but which have not been declared to the tax authorities.

The origins of these sums of money may be various and reflect the tradition of cash payment and what is
known in popular French culture as savings kept (cid:145)under the mattress(cid:146).

Converting this cash into euro will mean that holders will have to declare the money to the tax authorities
and pay tax or even fines. Unless preventive action is taken, there is a definite risk of tax evasion occurring
as a result of funds being channelled through countries outside the euro-zone, or even of fraud.

Although only a rough estimate can be made of the amount of money involved in each country, the
national banking authorities estimate that the amounts are not insignificant and that large-scale tax evasion
could have an adverse effect on the economies of the euro-zone.

In addition, depending on how strict an approach is taken in each of the Member States, there is a danger
of harmful tax competition occurring within the Union.

One solution may be the reinvestment of these sums of money, under certain conditions, in the national
economies.

Has the Commission addressed the problem, in particular as part of the tax package that is currently being
discussed? If so, can it explain what proposals it has made? If not, does it intend to look into the issue?

Answer given by Mr Solbes Mira on behalf of the Commission

(27 April 2000)

In order to avoid complicating the conversion of banknotes in 2002, the Member States do not wish to
create new controls in addition to those already in place. Under Council Directive 91/308/EC of
10 June 1991 on prevention of the use of the financial system for the purpose of money laundering (1),
banks will simply have to check the identity of customers converting a sum of over € 15 000 in one or
more transactions.

Coins and notes will be converted free of charge for bank customers provided that the sums involved are
(cid:145)household amounts(cid:146). It will often be possible to exchange notes at commercial banks for several months
after they cease to be legal tender. The exchange period will be longer at the central bank, usually about
ten years, or sometimes indefinite, as in Belgium.

(1) OJ L 166, 28.6.1991.