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The European Commission launched on Monday, for a period of 15 weeks, a public consultation procedure on the use of small 1 and 2 euro cent coins, with a view to a possible legislative proposal, which could lead to phasing out of these coins, reports a press release from the Community Executive.
During the 15 weeks of consultation, both ordinary citizens and interested institutions are invited to express their views and suggestions on this topic. Subsequently, the Community Executive will carry out an analysis and an impact study on the use of these small coins, taking into account, among other things, the narrow points of view.
The Commission will do a thorough analysis
On this basis, the Commission “will decide, by the end of 2021, whether a legislative proposal is necessary on the introduction of uniform rules for cash payments in the euro area and on the possible elimination of 1 and 2 euro cents”.
In the evaluation procedure, the Commission will carefully analyze the economic, social and environmental impact of the introduction of uniform standards. Any future proposals on this topic will be based on the outcome of the evaluation.
According to analysts, the 1 and 2 cent coins cost a lot and often end up in citizens’ wallets unused, according to Agerpres.
The recent appreciation of the euro is worrying
The European Central Bank is concerned about the recent appreciation of the euro.
“The recent appreciation of the euro is worrisome as it creates additional downward pressure on prices, at a time when inflation is already low.
The implications for monetary policy are obvious: if downward pressures jeopardize our goal of price stability, we will have to intervene. However, if the opposite effects occur, the measures we have already taken may be sufficient, “said Ignazio Visco, member of the Governing Council of the ECB.
On September 1, the euro appreciated to $ 1.2011, the highest level since mid-2018. The appreciation of the euro erodes the competitiveness of exports and lowers inflation as imports become cheaper.
On Friday, it depreciated to $ 1.1630 on fears about the effects of the increase in coronavirus cases in Europe.
