1 Euro notes!

[tabbs]

No, the seignoreage is distributed from the ECB to the banks of the ESCB and then follows the normal path of the former-currencies (to the governments).

Guess that depends ... This for example (emphasis by me) is from the March 2008 media release: http://www.ecb.europa.eu/press/pr/date/ ... _1.en.html

"Distribution of the ECB’s income on euro banknotes in circulation: The Governing Council decided that, from 2006, this income is due to the NCBs in the financial year in which it accrues, but is to be distributed on the second working day of the following year. It is distributed in full unless the ECB’s net profit for the year is less than its income earned on euro banknotes in circulation. The latter was the case in 2007, due to the decision by the Governing Council to make transfers to the provision for foreign exchange rate, interest rate and gold price risks. Based on the ECB’s estimated financial result for the year, the Governing Council decided in December 2007 to withhold distribution of the whole of this income."

This year it is different again: http://www.ecb.europa.eu/press/pr/date/ ... _1.en.html
"It is distributed in full unless the ECB’s net profit for the year is less than its income earned on euro banknotes in circulation and subject to a decision by the Governing Council before the end of the financial year to transfer part or all of this income to the provision for foreign exchange rate, interest rate and gold price risks. The latter was the case in 2008, due to the decision by the Governing Council to transfer approximately €1.0 billion out of the ECB’s income on euro banknotes in circulation to this provision. Consequently, the remaining income on euro banknotes of €1.2 billion was distributed to the NCBs on 5 January 2009."

Back to the €1 notes - The only advantage (apart from them possibly being attractive for EBTers, hehe) I see is that notes can be exchanged more easily. If a visitor from, say, the US takes his change back home, he can get the EUR notes exchanged into USD cash. That does not work with coins. Then again, I somehow manage to hardly ever take lots of cash back home when I travel outside the euro area.

Christian

[groentje]

In Switzerland and the UK I had no problems changing coins of 1 and 2 euro, but I might have been just lucky.
Withdrawing the notes of 500 wouldn't be a problem, but as we see them almost never in circulation, it doesn't really matter, does it?

[R/J]

Withdrawing the notes of 500 wouldn't be a problem, but as we see them almost never in circulation, it doesn't really matter, does it?

Well, you rarely see them in circulation, because it's impossible to get one as change.

[Asavoid]

(winner of Italian private competition)



In Italy the actual Minister of economy said that the 1 and 2 € notes have function of psychological aid to better perceive the "value" of the money (in order to prevent the perception of the coins like unimportants) and we would have "to do as the USA", that they have the 1$ note. Well... in the USA is trying from ages to do the exact contrary: to replace the 1$ note with a coin...

that design is very beautiful .... but it wrong because it show classic antique, what is the age for the 5 Euro note

2 Euro note : Bronze Age with bronze weapon like sword. Colour yellow like bronze.
1 Euro note : Stone Age with Menhir, torch and ear of wheat. Blue like the Euroflag with grey symbols. BLUEBACK !!!

[tabbs]

Don't think there is any need to seriously think about designs for such low value notes.

Christian

[Jes]

(winner of Italian private competition)



In Italy the actual Minister of economy said that the 1 and 2 € notes have function of psychological aid to better perceive the "value" of the money (in order to prevent the perception of the coins like unimportants) and we would have "to do as the USA", that they have the 1$ note. Well... in the USA is trying from ages to do the exact contrary: to replace the 1$ note with a coin...

that design is very beautiful .... but it wrong because it show classic antique, what is the age for the 5 Euro note

2 Euro note : Bronze Age with bronze weapon like sword. Colour yellow like bronze.
1 Euro note : Stone Age with Menhir, torch and ear of wheat. Blue like the Euroflag with grey symbols. BLUEBACK !!!

I think you're wrong again. The "thème" of euronotes is not objects, it is rather "art" or, more specifically: Architecture.

Therefore... 1 or 2€ notes would exist, they might depict some sort of idealised Stonehenge, don't you think so?