Future of 1 and 2 euro cent coins (Communication)
The Commission is considering four options for the future of 1 and 2 cent coins. These range from continued issuance of small coins to reducing the production costs of small coins to abolition of small coins.
Examining the cost differences between mints, as proposed by the Commission, may reduce losses made by the euro-states on the issuance of small coins. Abolition of small coins will save the time needed for payment by companies and consumers and reduce the handling costs for banks and retailers. The rounding rules, proposed by the Commission on abolition of small coins, may however reduce the incentive for retailers to pass on a cost reduction to the consumer. Furthermore, the EU does not have the competence to lay down EU-wide rounding rules.