Report on recent developments as regards euro coins

Summary:

On 27 November 2018 the European Commission presented a report regarding euro coins, assessing the usefulness of the two smallest denominations (one and two euro cents).

Further information:

The arrival of the euro as the single European currency was a major step forward in European integration. Euro cash is a dominant means of payment, with euro coins playing an important role. Citizens and retailers use coins in daily transactions to make payments or give change.

Though euro coins are issued at national level, it is the Council that standardises their denominations and technical specifications. Since the introduction of euro notes and coins on 1 January 2002 the euro coinage, covering eight denominations ranging from one euro cent to two euros, has remained unchanged.

The usefulness of the two smallest denominations (one and two euro cents) has been a matter of debate since they were introduced. The main aspects of this debate are these coins’ high production and handling costs compared to their face value, the high loss rate of these coins, and the falling purchasing power of these two small denominations.

In 2013 the Commission carried out an impact assessment which was presented as a staff working document accompanying the Communication on issues related to the continued issuance of the 1 and 2 euro cent coins. This new report updates the findings of the 2013 Communication.