EU considers phasing out 1c and 2c coins

Scofflaw · 15-05-2013 4:48pm #1

The European Commission on Tuesday (14 May) tabled several scenarios for the withdrawal of the 1 and 2 euro cent coins, with the cost of printing these coins greater than their use.

"The production of 1 and 2 cent coins is clearly a loss-making activity for the euro area with the difference between the face value of the coins and the price paid by the state to get them pointing at an estimated total cumulative loss of €1.4 billion since 2002," the commission said in a press release.

Public opinion about the 1 and 2 euro cent coins is "rather paradoxical", says the commission, referring to various Eurobarometers. On the one hand, people seem attached to these coins and fear inflation should they to disappear. But on the other hand, they do not re-circulate them.

http://euobserver.com/economic/120124

It may or may not mean an end to €1.99! style pricing - you can still price things as that, but they really will be €2 instead of you getting a tiny bit of change.

cordially,
Scofflaw

howamidifferent · 15-05-2013 4:50pm

What about the McDonalds euro saver meal then?

jester77 · 15-05-2013 4:51pm

howamidifferent wrote: »

What about the McDonalds euro saver meal then?

It will still be a euro.

Schnitzel Muncher · 15-05-2013 4:53pm

howamidifferent wrote: »

What about the McDonalds euro saver meal then?

I can see you are easily confused...

Marsden · 15-05-2013 4:53pm

It's about bleedin time. The only place your likely to use these stupid coins is machines for parking and the likes, and most of them won't take them.

DoesNotCompute · 15-05-2013 4:54pm

Excellent idea.

Expect Irish retailers to commence price gouging.

DylanII · 15-05-2013 4:56pm

We dont use them in out shop anyway. If something comes to 19.95 to .99 they dont get change from a €20.

15-05-2013 4:59pm

Smyths toystore will lose out since they never want to give you 1 cent change. I have to ask for it and when they say they have none, I tell them to give me 2 or 5 cent.

professore · 15-05-2013 5:02pm

DylanII wrote: »

We dont use them in out shop anyway. If something comes to 19.95 to .99 they dont get change from a €20.

You are gouging already before it comes in ...

dudara · 15-05-2013 5:10pm

When I lived in the Netherlands, a lot of the chains employed Swedish Rounding. Essentially, things were priced as normal, i.e. 97c. €1.28. At the till, your total was displayed correctly, but the shop assistant would round up or down to the nearest 5c and give change accordingly. I presume that the law of averages meant that it balanced out for the shop and consumer.

woodoo · 15-05-2013 8:06pm

DylanII wrote: »

We dont use them in out shop anyway. If something comes to 19.95 to .99 they dont get change from a €20.

I would ban pricing like that first off.

ardmacha · 15-05-2013 8:08pm

The ECB is getting what it deserves. The question is why the Euro was denominated at such a low level so that its fractions become useless within 10 years of its launch. If the Euro was worth twice as much it would have made more sense, i.e. IR£1.45

woodoo · 15-05-2013 8:10pm

ardmacha wrote: »

The ECB is getting what it deserves. The question is why the Euro was denominated at such a low level so that its fractions become useless within 10 years of its launch. If the Euro was worth twice as much it would have made more sense, i.e. IR£1.45

But they are still holding on to the 5 cents so €1.45 is still possible

Schnitzel Muncher · 15-05-2013 8:12pm

I like collecting, counting and bagging my change. This disappoints me.

deman · 15-05-2013 8:16pm

About time. The 1c and 2c coins were never introduced here in Finland and every time I go back to Ireland, I get cluttered up with these miniature coins weighing down my pockets. Nothing but a nuisance.

woodoo · 15-05-2013 8:20pm

deman wrote: »

About time. The 1c and 2c coins were never introduced here in Finland and every time I go back to Ireland, I get cluttered up with these miniature coins weighing down my pockets. Nothing but a nuisance.

I have a big jar off them and i'm too lazy to count them.

rainbowdash · 15-05-2013 8:27pm

deman wrote: »

About time. The 1c and 2c coins were never introduced here in Finland and every time I go back to Ireland, I get cluttered up with these miniature coins weighing down my pockets. Nothing but a nuisance.

Pity somebody in this country couldn't use the same level of intelligence, such rubbish coins they are.

skafish · 15-05-2013 11:39pm

woodoo wrote: »

I have a big jar off them and i'm too lazy to count them.

Bring them into the bank.... they will count them for you.

I bring my small change jar to my local pub about every 6 months. The banks charge business for change, so they are delighted to get it. Ant it pays for my few pints:D:D

Dannyboy83 · 16-05-2013 12:06am

Probably bad news for the charity boxes, otherwise i don't see the down side, it's very rare i use cash these days

16-05-2013 12:09am

I think that they'd just change to .95 pricing if these coins are withdrawn.

AlmightyCushion · 16-05-2013 12:14am

woodoo wrote: »

I have a big jar off them and i'm too lazy to count them.

Bring a bunch to tesco and dump them in the self service till when you're buying something. You'll be rid of them in no time.

Cookie_Monster · 16-05-2013 12:46am

The European Commission on Tuesday (14 May) tabled several scenarios for the withdrawal of the 1 and 2 euro cent coins, with the cost of printing these coins greater than their use.

That's not really the case though is it. Even if they cost say 50c to make each 1c coin it only has to be used in 50 transactions to 'pay for itself'. Considering how long coins tend to last it's easily achievable.

The Dutch system is a good one however and the same is applied in New Zealand, the total of the bill being rounded if paying in cash but remaining exact if paying by card.

SeanW · 16-05-2013 3:04am

DylanII wrote: »

We dont use them in out shop anyway. If something comes to 19.95 to .99 they dont get change from a €20.

You better hope I don't come into your shop then ... because if something costs €20 but is priced €19.99 because you think your customers are morons, any goodwill I have to ye is gone, kaput ... and I'm going to want my cent back.

ardle1 · 16-05-2013 3:35am

ardmacha wrote: »

The ECB is getting what it deserves. The question is why the Euro was denominated at such a low level so that its fractions become useless within 10 years of its launch. If the Euro was worth twice as much it would have made more sense, i.e. IR£1.45

woodoo wrote: »

But they are still holding on to the 5 cents so €1.45 is still possible

?

Fill this blank with 'YES' or 'NO'
____ I dont understand the English Language.

Nody · 16-05-2013 6:52am

Karsini wrote: »

I think that they'd just change to .95 pricing if these coins are withdrawn.

Nope, they would still charge .99 (and then round it up/down depending on what the total ends up if needed).

Scofflaw · 16-05-2013 9:46am

ardmacha wrote: »

The ECB is getting what it deserves. The question is why the Euro was denominated at such a low level so that its fractions become useless within 10 years of its launch. If the Euro was worth twice as much it would have made more sense, i.e. IR£1.45

I can't work out whether this is supposed to be serious.

puzzled,
Scofflaw

Schnitzel Muncher · 16-05-2013 9:48am

skafish wrote: »

Bring them into the bank.... they will count them for you.

Do you not need to bag them first?

antoobrien · 16-05-2013 10:36am

ardmacha wrote: »

The ECB is getting what it deserves. The question is why the Euro was denominated at such a low level so that its fractions become useless within 10 years of its launch. If the Euro was worth twice as much it would have made more sense, i.e. IR£1.45

The euro was priced the way it was due to the bilateral agreements between the members of the ERM which controlled the exchange rates of the currencies. The prices were set in 1998 based on the market rates of the time. The ECB didn't choose the rates, it merely rubber-stamped them. The rates were chosen by the markets under frameworks defined in the Maastricht treaty.

31 December 1998 - Determination of the euro conversion rates

Ignoring the fact that this would have breached all sorts of treaties and agreements, do you really think that the other 10 contemporary Eruozone states as well as the 4 other EU members would have allowed Ireland to devalue the punt by 50%?

Btw, the euro rate was €1=IR£0.787564 - making "twice as much" IR£1.575128.

enda1 · 16-05-2013 10:45am

antoobrien wrote: »

The euro was priced the way it was due to the bilateral agreements between the members of the ERM which controlled the exchange rates of the currencies. The prices were set in 1998 based on the market rates of the time. The ECB didn't choose the rates, it merely rubber-stamped them. The rates were chosen by the markets under frameworks defined in the Maastricht treaty.

31 December 1998 - Determination of the euro conversion rates

Ignoring the fact that this would have breached all sorts of treaties and agreements, do you really think that the other 10 contemporary Eruozone states as well as the 4 other EU members would have allowed Ireland to devalue the punt by 50%?

Btw, the euro rate was €1=IR£0.787564 - making "twice as much" IR£1.575128.

He said the denominaiton not the rate specific to Ireland. The Euro could have had its denomination at a different level meaning the rate to each member state would be changed accordingly. So €5 would have been set at the value of what €10 was.

antoobrien · 16-05-2013 11:03am

enda1 wrote: »

He said the denominaiton not the rate specific to Ireland. The Euro could have had its denomination at a different level meaning the rate to each member state would be changed accordingly. So €5 would have been set at the value of what €10 was.

He said both actually - sepcifying a rate of €1=IR£1.45

The denominations were the same (2 coin excepted) Ireland at the time, why would we object to that?

What (eurozone) country at the time didn't have a 1/2c equivalent?

enda1 · 16-05-2013 11:13am

antoobrien wrote: »

He said both actually - sepcifying a rate of €1=IR£1.45

The denominations were the same (2 coin excepted) Ireland at the time, why would we object to that?

What (eurozone) country at the time didn't have a 1/2c equivalent?

That that would have been Ireland's rate. All the other members would have been changed accordingly.

EU considers phasing out 1c and 2c coins

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