Paying with euro cash in the euro area: Commission recommendation on the legal tender of the euro

Since the introduction of the euro, the status of legal tender of euro banknotes and coins has been a European matter. However, beyond the basic principles set in the Treaty and in the Regulations, the various pre-euro national principles continue de facto to shape the concrete effects of the legal tender of the euro in the participating Member States.

>> Press release IP10/331. Commission adopts a recommendation on the scope and effects of legal tender of euro banknotes and coins
 >> Official Journal L83 of 30 March 2010. p 70. Commission recommendation on the scope and effects of legal tender of euro banknotes and coins
>> Memo 10/92. Frequently asked questions. Legal tender of the euro: Q&A on the new Commission recommendation
 >> Report. Euro legal tender expert group (ELTEG). Definition, scope and effects of legal tender of euro banknotes and coins(452 kB)  

Questions on legal tender of euro cash

The sometimes very diverse situations across Member States may be a source of confusion for the European citizen willing to pay with euro cash. This may lead to questions such as:

• Can a retailer refuse payments in cash at all times?
• Can shops refuse payments with high denomination banknotes?
• Can surcharges be imposed on payments in cash?

Commission gives guidelines on daily life euro cash questions

Therefore, the purpose of this Commission recommendation is to give citizens guidelines on such issues with direct implications on their daily lives. These guidelines are based on 10 guiding principles:

• Banknotes and coins should be accepted for their full face value to pay for debts 
• Payments in cash should be the accepted rule. This should only be refused because of the 'good faith' principle - for example, if the retailer does not have enough change
• It should be the rule to accept high denomination banknotes
• No surcharges should be imposed on payments in cash
• Member States should not adopt new rounding rules to the nearest five cent
• Member States should prevent euro collector coins from being used as means of payment
• Stained banknotes should be brought back to the National Central Banks as they might be the product of a theft
• Total destruction of banknotes and coins by individuals in small quantities should not be prohibited
• Mutilation of banknotes and coins for artistic purposes should be tolerated
• The competence to destroy fit euro coins should not belong to national authorities in isolation anymore

The recommendation is the follow-up of the work carried out in 2009 by an ad-hoc group of experts co-chaired by the Commission and the European Central Bank, which gathered representatives of Ministries of Finance and National Central Banks of all euro-area Member States.