1 Euro notes!

[Olivier]

Italy, Finland, Ireland or France have lost their sovereignty on currency... The decisions are now taken in Frankfurt. A new bill, a new coin... the governors of the ECB decide, now. The states have nothing to tell anymore. We are now living in the same area.

This is only true for banknotes. Production of coins is still in the authority of EU member states - coordinated by the mint directors and the EU Commission. Only the amount of coins is to be decided by the ECB. See details here http://www.eurotracker.net/news/shownews.php?nid=68 for notes and Article 106 (2) of the Treaty establishing the European Community for coins:

Code: Select all

2. Member States may issue coins subject to approval by the ECB of the volume of the issue. The Council may, acting in accordance with the procedure referred to in Article 252 and after consulting the ECB, adopt measures to harmonise the denominations and technical specifications of all coins intended for circulation to the extent necessary to permit their smooth circulation within the Community.

So, if a state wants to create a 5 € coin, who decides?

[Donald]

I think that the ECB must decide if a new denomination is permissible. ECB has to create the international face and to find out the weight and size before single nations can start own production. Maybe they just interdict to make 5 € coins, because it is too expensive.

[Olivier]

I think that the ECB must decide if a new denomination is permissible. ECB has to create the international face and to find out the weight and size before single nations can start own production. Maybe they just interdict to make 5 € coins, because it is too expensive.

And confusing!

[Donald]

And confusing!

From my personal experience I can tell you that I have lived many years with 5 DM (approx. 2.50 €) coins and notes. There was never trouble or confusion, but I must admit that the 5 DM bills were quite rare, I only had 2-5 of them in my wallet during one whole year.

[Olivier]

And confusing!

From my personal experience I can tell you that I have lived many years with 5 DM (approx. 2.50 €) coins and notes. There was never trouble or confusion, but I must admit that the 5 DM bills were quite rare, I only had 2-5 of them in my wallet during one whole year.

When I said "confusing", I was thinking about the double circulation of a 5€ bill + a 5€ coin ... which would be the same if we have a 1€ bill + a 1€ coin...
But in France, we had even coins of 100 francs (15 euros), so...

[thomas]

I think that the ECB must decide if a new denomination is permissible. ECB has to create the international face and to find out the weight and size before single nations can start own production.

The above quoted Article says something different: With respect to denomonation and specs, the ECB is only to be consulted, but decisions are up the the Council of the EU.

However, the ECB decides about the volume, as it did last time on December 19, 2002 for coin production 2003. If the volume is fixed, the number of 5 Euro-coins would be limited. And: essential is that the circulation of coins must be smooth within the EU. That should give some arguments against issuing unique denominations in a single country.

Maybe they just interdict to make 5 € coins, because it is too expensive.

It costs about 8 euro-cent to produce one 2-EUR-coin; a 5 EUR-coin would hardly be much more expensive.

[Fons]

I think that the ECB must decide if a new denomination is permissible. ECB has to create the international face and to find out the weight and size before single nations can start own production. Maybe they just interdict to make 5 € coins, because it is too expensive.

I think when a country wants to create a 5 euro coin that they just can do it, but people can only pay with it in that country.
Since one month we have a 'van Gogh vijfje' ('vijfje' is a word for five (because it's 5 euro), and 'van Gogh' is the las name from a very famous Dutch painter, the Netherlands made that coin bacause he would be 150 years old this year
Here is a small picture of it, in the Netherlands you can buy it for just the normal value (5 euro) at the post office
Front side:
Back side:

You can only pay with it in the Netherlands

[Donald]

The above quoted Article says something different: With respect to denomonation and specs, the ECB is only to be consulted, but decisions are up the the Council of the EU.

Yes, "with respect to denominations and specs" IMHO applies for existing denominations. It is essential for laws that they only apply for things that already exist. A 5 € coin does not exist. Creating a new denomination like the 5 € coin would require a decision, so it's up to the Council. Anyway, a single country cannot create their own denominations. Exept for the case they keep it restricted to this particular country like Fons described the Van Gogh issue.

[Olivier]

You can only pay with it in the Netherlands

It's not easy to understand for the foreigners why you have euros you can spend all over Europe and other coins of euros you can only spend in the Netherlands... :-/

[Fons]

You can only pay with it in the Netherlands

It's not easy to understand for the foreigners why you have euros you can spend all over Europe and other coins of euros you can only spend in the Netherlands... :-/

Yes but people buy to save it, very less people pay with it, but I don't think you can get it back in a shop. Maybe when you specially want that coin.

[thomas]

The above quoted Article says something different: With respect to denomonation and specs, the ECB is only to be consulted, but decisions are up the the Council of the EU.

Yes, "with respect to denominations and specs" IMHO applies for existing denominations. It is essential for laws that they only apply for things that already exist.

First there was Article 106(2) dealing with not yet existing euro coins. Then later there were coins

Anyway, a single country cannot create their own denominations. Exept for the case they keep it restricted to this particular country like Fons described the Van Gogh issue.

... which is not intended for circulation:

The Council may ... adopt measures to harmonise the denominations and technical specifications of all coins intended for circulation to the extent necessary to permit their smooth circulation within the Community.

Furthermore, Article 11 of the Council Regulation EC 974/98 of May 8th, 1998 (OJ L 139, 11.05.1998, pp.1-5) says that euro coins shall be the only coins which have the status of legal tender in all of Euro-Land. That is, such collectors' vanGogh or soccer WM coins or whatever are legal tender in at most their home country.

The remaining question is: can an italian 5EUR-coin be intended for italian circulation but not intended for Euroland-circulation? I'm not a legal expert, but that sounds unthinkable to me - it would be contradictory to the notion of a single european currency.

[Schaza]

Well I don't even use my 5e notes, so I can't see myself using 1e notes.

I don't use 5€'s too. It's too small for doing food shopping, or any else. I save all my 5€ notes to little box, and when it's full, then i carry those 5€'s to bank.

Like many many others, in shops i pay only with 10, 20 and 50 euro notes.

My opinion is that 50€ is current size to food shops, 20€ to gas stations, and 10€ to some other small payments.

[malu]

Today I read in a portuguese newpaper that an italian minister (Giulio ..?) was going to ask the ECB to produce 1 euro notes to help controling inflation...

what do you think of that?

ps: I know there was already a topic about this, but I couldn't find it ..

Saudi Arabia has a 1 Riyal bank note. That's about 0,25 €
At least they had when I was there in 2002. And these notes was in rather good condition. Eiter they replace them often, or people take care of there notes

[groentje]

Well I don't even use my 5e notes, so I can't see myself using 1e notes.

I don't use 5€'s too. It's too small for doing food shopping, or any else. I save all my 5€ notes to little box, and when it's full, then i carry those 5€'s to bank.

Like many many others, in shops i pay only with 10, 20 and 50 euro notes.

My opinion is that 50€ is current size to food shops, 20€ to gas stations, and 10€ to some other small payments.

It will probably be me, but I hardly see notes of € 10. € 5 on the other hand, I use very often.

But please, that they keep the current situation as it is, for at least 5 to 10 years, with no abolishment of the 1 and 2 ct.

[bhoeyb]

Well I don't even use my 5e notes, so I can't see myself using 1e notes.

I don't use 5€'s too. It's too small for doing food shopping, or any else.

You should do if you want a 'fast' hit .