WRITTEN QUESTION E-0203/02 by Erik Meijer (GUE/NGL) to the Commission. Protecting consumers by imposing conditions on the refusal by businesses to accept payment with coins of one, two or five euro-cents.
Date: 2002-02-05
Institutions: European Parliament, Provisional data
Subjects: EU law - national law, European Monetary System, Finland, consumer protection, euro, national implementing measure, payment

C 28 E/18

Official Journal of the European Union

EN

6.2.2003

The Commission provides substantial support to strengthen health systems in African countries
5.
through project, sector and general budget support. This helps countries to provide prevention and care
for malaria control, which is a key element of national health strategies in Africa. The Commission is also
implementing a programme for accelerated action against human immunodeficiency virus/acquired
immune deficiency syndrome (HIV/AIDS), tuberculosis (TB) and malaria, diseases associated with poverty.
The programme seeks to increase the impact of existing proven measures (particularly ensuring ready
access to effective malaria treatment regimes and wide use of insecticide-treated nets); to increase access to
affordable pharmaceuticals; and to increase research and development of new generations of drugs and
vaccines. The Commission has been closely involved in the establishment of the Global Fund to fight HIV/
AIDS, TB and Malaria and sits on the inaugural governing board. Pledges to this new financing instrument
stand at USD 1,9 billion (the Community has pledged an initial EUR 120 million).

It is expected that an additional USD 500-700 million will be available to countries in 2002, with the first
grants to be announced in April 2002. Much of this will benefit malaria control efforts in Africa.

(2003/C 28 E/020)

WRITTEN QUESTION E-0203/02

by Erik Meijer (GUE/NGL) to the Commission

(5 February 2002)

Subject: Protecting consumers by imposing conditions on the refusal by businesses to accept payment with

coins of one, two or five euro-cents

Does the Commission recall that all decimal currencies which were previously the legal tender in the
1.
existing Member States of the European Union were originally divided into 100 cents and in some cases
even 200 half cents, and that one-cent coins and other small coins only disappeared in a number of
countries after the cent had almost completely lost its value as a result of currency devaluation?

2.
Did the fact that the smallest values in the majority of the old currencies were worth around two
euro-cents play a part in the fixing of the value of the euro (cid:1) and consequently of the cent (cid:1) at the end
of 1998? If not, why not?

3.
In introducing the euro, was the basic principle adopted that the smallest coins to be issued (cid:1) namely
those of one euro-cent (cid:1) were to be of sufficient value to enable them to go on being used in cash
payments in the long term, thereby putting an end to the gap previously occurring between calculated
prices and actual payment as a result of the fact that, in cash transactions, prices had to be rounded up, for
example, to five or 10 times the value of the cent because of a lack of suitable coins?

4.
In some Member States, such as Finland, was it assumed right from the start that coins of one and
two euro-cents would have no part to play, with the result that only small numbers of such coins were
produced and they can be refused? Can individual Member States decide to abolish coins of one euro-cent
or coins of other sizes?

Are shops and other businesses allowed to refuse to accept payment in coins of one or two euro-
5.
cents and possibly other coins and notes? Is the refusal to accept such payment still linked to the old
condition that large sums cannot be paid using a large amount of small coins, or are there now other legal
grounds for refusal?

6.
Is the Commission prepared, in consultation with the Member States and the ECB, to take steps to
ensure that businesses will only be permitted to decide, on grounds of internal considerations relating to
cash management and administration, to refuse to accept small coins in circulation on condition that this
leads to prices being reduced to the lowest multiple of the smallest coin accepted (2, 5 or 10 euro-cents)
and never to rounding up being imposed?

6.2.2003

EN

Official Journal of the European Union

C 28 E/19

Answer given by Mr Solbes Mira on behalf of the Commission

(21 March 2002)

1. and 3.
The Commission studied the various existing denominations in close cooperation with the
Mint Directors Working Group. A balance had to be struck between a large number of coins, which might
have caused problems with recognition, and a small number of different coins, which would have made
giving change difficult. The average number of different denominations in the European Union was
7.17 (1). After discussion, the Mint Directors proposed a series of eight coins: 1, 2, 5, 10, 20 and 50 cents,
and 1 and 2 euros. The possibility of producing a 5-euro coin was discussed but rejected in favour of a
note of that amount. The reason for issuing six coins in cents is to facilitate conversion operations by
enabling new euro prices to be as close as possible to the old prices in national currency. The formal
decision on the denominations was taken on 3 May 1998, with the adoption of Council Regulation (EC)
No 975/98 on denominations and technical specifications of euro coins intended for circulation (2).

The value of the euro was fixed in accordance with Article 123(4) of the EC Treaty, which makes no

2.
reference whatsoever to the small denominations of coins.

Finnish Law No 890/2000 on rounding prices in euros was adopted on 27 October 2000 and thus
4.
postdates the decisions on the production plans. The Commission examined the compatibility of this Law
with Council Regulation (EC) No 974/98 of 3 May 1998 on the introduction of the euro (2), Council
Regulation (EC) No 975/98 and the consumer protection directives.
the Finnish
provisions as a whole were compatible with Community law, since the 1-cent and 2-cent coins remained
legal tender in Finland. Generally speaking, the Commission takes the view that a participating State may
decide not to issue certain denominations of euro coins but may not refuse to recognise them as legal
tender.

It concluded that

The only restriction on accepting euro coins laid down in Community legislation is contained
5. and 6.
in Article 11 of Council Regulation (EC) No 974/98:
‘no party shall be obliged to accept more than
50 coins in any single payment’. Any other limitations would have to be based on explicit national
provisions, the possibility for which is provided for in recital 19 to the Regulation. The Commission has
no intention of proposing any amendments to these provisions.

(1) There were 5 in Belgium, 7 in Denmark, 9 in France, 8 in Germany, 7 in Greece and Ireland, 9 in Italy, 5 in

Luxembourg, 6 in the Netherlands, 7 in Portugal, 9 in Spain and 7 in the United Kingdom.

(2) OJ L 139, 11.5.1998.

(2003/C 28 E/021)

WRITTEN QUESTION E-0259/02

by Christopher Huhne (ELDR) to the Commission

(7 February 2002)

Subject: Seignorage revenue forecast in 2002

1. Will the Commission estimate the seignorage revenue accruing to each Member State’s central bank
either on the basis of a forecast for 2002 (taking into account the new key for sharing seignorage revenue
of the European Central Bank) or on the basis of applying the new key to the actual seignorage revenue in
2001 assuming that all EU countries were members of the euro area,
including Britain, Sweden and
Denmark?

2. Will it express this as a proportion of GDP in each case?

Answer given by Mr Solbes Mira on behalf of the Commission

(19 March 2002)

1.
The European System of Central Banks (hereafter: Eurosystem) has responsibility for the calculation
of monetary income and its allocation among the Member States. It is up to the central banks of the
Eurosystem to apply the coefficients of the adjustment scheme the Governing Council has agreed upon on