Opinion of the European Central Bank of 30 April 2002 at the request of the Finnish Ministry of Finance on a draft proposal concerning the rounding of payments denominated in euro (CON/2002/15)
Date: 2002-04-30
Institutions: European Central Bank
Subjects: Finland, monetary policy, money, national law, payment

EN

OPINION OF THE EUROPEAN CENTRAL BANK

of 30 April 2002

at the request of the Finnish Ministry of Finance

on a draft proposal concerning the rounding of payments denominated in euro

(CON/2002/15)

1.

On 2 April 2002 the European Central Bank (ECB) received a request from the Finnish Ministry

of  Finance  for  an  opinion  on  a  draft  Government  proposal  concerning  an  amendment  to  the

Finnish  Act  on  the  rounding  of  payments  denominated  in  euro  (hereinafter  referred  to  as  the

“proposal”). The proposal intends to amend the Laki euromääräisten maksujen pyöristämisestä

890/2000  (the  Finnish  Act  of  27  October  2000  on  the  rounding  of  payments  denominated  in

euro, hereinafter referred to as the “Rounding Act”) by providing that payments effected by a

bank card or other payment cards may be rounded to the nearest five cent.

2. 

The  ECB’s  competence  to  deliver  an  opinion  is  based  on  Article 105(4)  of  the  Treaty

establishing the European Community and first and  second indents  of  Article  2(1)  of  Council

Decision  98/415/EC  of  29 June  1998  on  the  consultation  of  the  ECB  by  national  authorities

regarding draft legislative provisions1, as the proposal contains a provision concerning currency

matters and means of payment. In accordance with the first sentence of Article 17.5 of the Rules

of Procedure of the European Central Bank, the Governing Council of the ECB has adopted this

opinion.

3. 

According  to  the  Rounding  Act,  in  Finland  cash  payments  denominated  in  euro  are  rounded

downwards  or  upwards  to  the  nearest  multiple  of  five  euro  cent.  The  principal  aim  of  the

Rounding Act is to restrict the use of one and two cent coins for cash payments. The reasoning

for  the  Rounding  Act  was  that  the  minting  of  one  and  two  cent  coins  was  not  cost-effective,

since  the  production  costs  of  one  and  two  cent  coins  greatly  exceed  their  face  value.

Furthermore, the use of these coins would excessively increase the costs for both authorities and

businesses in handling and supplying coins.

4. 

According to the proposal, the current situation in which only cash payments have been rounded

has  led  to  uncertainties  with  regard  to  the  interpretation  of  the  Rounding  Act.  Therefore  it  is

proposed to extend the rounding rules for euro cash payments to cover also payments effected

by bank or other payment cards.

1 

OJ L 189, 3.7.1998, p. 42.

                                                     
5. 

Since the ECB was not consulted at the time of adoption of the Rounding Act, the ECB takes

the opportunity to provide its  opinion  not  only  on the  proposal  but also  on the  Rounding  Act

currently in force in Finland.

6. 

The ECB notes that the current Rounding Act does not alter the legal tender status of one and

two cent coins in Finland. Nevertheless, taking into account the aims and principles of the single

European  coinage  system  established  by  the  adoption  of  the  euro,  the  ECB  would  like  to

emphasise  that  the  Rounding  Act  should  in  any  case  not  prevent  the  one  and  two  cent  coins

from being used as a means of payment, as they are de jure legal tender in the entire euro area.

Member States' legislation should not lead to divergent treatment of the euro. 

7. 

Furthermore, the ECB notes that, while the principal aim of the Rounding Act was to restrict the

use  of  one  and  two  cent  coins  for  cash  payments,  the  proposal  now  intends  to  extend  the

rounding rule to cover other payments that are not cash payments, i.e. to payments by bank or

other  payment  cards.  The  reasoning  for  the  original  Rounding  Act  was  that  these  low

denomination  coins  are  impractical  and  excessively  increase  the  cost  of  money  supply  in

Finland. The ECB would like to remark that such reasoning does not apply to the rounding of

payments effected by a bank or other payment cards.

The  proposed  extension  of  the  rounding  rule  to  payments  with  bank  or  other  payment  cards

creates the risk that this rule might not comply with Community law, in particular with Article 2

of  Council  Regulation  (EC)  No  974/98  of  3  May  1998  on  the  introduction  of  the  euro2  (as

amended). The ECB considers it important for the competent Community institutions to assess

the compatibility of the proposed rule with Community law.

8. 

Finally,  the  ECB  would  welcome  a  provision  in  the  proposal  requiring  a  clear  and

comprehensible  indication  to  the  consumer  fulfilling  payment  obligations  of  the  rounding

pursuant to the  Rounding  Act. Therefore, the rounding  downwards  or  upwards  of  the  amount

due to the nearest multiple of five euro cent should be expressly stated in the invoice, receipt or

in another proof of payment. 

2 

OJ L 139, 11.5.1998, p. 1.

2

                                                     
9. 

The  ECB  confirms  that  it  has  no  objection  to  the  competent  national  authorities  making  this

opinion publicly available at their discretion.

Done at Frankfurt am Main on 30 April 2002.

The President of the ECB

[signed]

Willem F. DUISENBERG

3