"Production too expensive"

Germany could abolish small cent coins

In Germany, the Bundesbank has proposed abolishing one and two-cent coins.

(Bild: Matt Light)

One and two-cent coins could be abolished in Germany. Cash payments would then be rounded up or down to the nearest five euro cents, the Bundesbank suggests. The costs for production, packaging and transportation are too high, it says.

"If we did away with the circulation of one and two-cent coins, cash would become more attractive for users. The cash cycle would also be more sustainable and efficient," said Bundesbank board member Burkhard Balz. In February 2024, he founded the "National Cash Forum", which aims to secure cash as a general means of payment and keep it available.

The rounding rules should then be "as uniform as possible" in Europe. In fact, some euro countries are already trying to get by without the smallest cent coins. However, they have not been completely abolished. In Finland, for example, cash payments are rounded by law to the nearest five-cent amount, for example from 14.97 to 14.95 euros. One and two-cent coins are not put into circulation, but are legal tender. Stores would not be able to accept them if they indicated this separately.

Many find small coins annoying
Similar regulations exist in the Netherlands, Slovakia, Ireland, Italy, Belgium and Estonia. According to surveys, small coins are not particularly popular. In the European Commission's latest Eurobarometer, the majority of respondents were in favor of abolishing one and two-cent coins. Furthermore, a large proportion ends up in piggy banks or gets lost.

The "National Cash Forum", which initiated the initiative in Germany, is made up of representatives from the retail sector, banking associations, cash-in-transit companies and consumer protection organizations.