Brussels, 13/09/2004 (Agence Europe) - Europeans have not taken one- and two-cent euro coins to their hearts, and would be prepared to see them disappear from their wallets forever. According to a Eurobarometre survey of December 2003, in Austria, Ireland, Italy, the Netherlands, Luxembourg and Belgium, most citizens feels that there are too many euro coins in circulation, and, in all countries of the euro zone except Germany, they would like to see the one- and two-cent coins done away with. A recent Commission internal note, which sums up the arguments and progress in discussions in those Member States which would like to see the back of the small coins, states that the Netherlands estimate that this would save Dutch retailers 30 million EUR a year. In Germany, however, traders are firmly opposed to getting rid of them, as the debate on price hikes, which started as soon as the single currency did, would be revived.
As for traders, commercial banks, which often pass on their handling fee, could also make savings, states the note. It also costs national central banks a considerable amount to produce the coins. Production costs are higher than or very close to their face value, and the additional costs of conditioning, transport and handling increase total costs by 3 or 4 cents. There are more one-and two-cent coins in circulation than any others, with 21% and 18% respectively of the total volume of coins, but they stay in the currency circuit for only a short time, due to their low levels of re-use, especially by consumers making payments. In order to decrease their circulation, Belgium's Banque Nationale is also examining opportunities to adopt the system of rounding-up currently in force in Finland, and soon to be brought in by the Netherlands (see EUROPE of 7 August). At this stage, nothing has been decided by the expert group charged with the task of studying the issue, and according to the Commission's note, the authorities of the Kingdom of Belgium have dropped their intentions to stop the production and circulation of these coins altogether. The Commission document also states that the debate on rounding-up has not convinced all in question (Germany). In the new Member States, which have coins in their national currency with a value below one or two euro cents, the preference could well also be to hang onto them. In an interview published in Le Monde, the President of the Banque de France indicates his opposition to getting ride of one- and two-cent coins. "The smaller coins are not for an insignificant amount, they are useful, they circulate well and there is no shortage of them", said Christian Noyer. However, according to a survey published on Sunday by the daily newspaper Ouest-France, most French people (59%) are in favour of getting rid of these coins.