92000E3898

WRITTEN QUESTION E-3898/00

by Robert Goebbels (PSE) to the Commission

(13 December 2000)

Subject: Advance supply of 5 and 10 banknotes

According to a recent report by the committee responsible for monitoring the introduction of the euro it has just been realised that it will not be possible to adapt most automatic cash dispensers in the EU Member States to issue 5 banknotes and, in certain countries, 10 banknotes also. In other words cash dispensers will generally only be able to issue 20, 50 or 100 banknotes. This will cause a major problem for the retail trade which, after 1 January 2002, will be receiving payment in large denominations and require to give change in 5 or 10 banknotes which will rapidly become very hard to obtain. In view of this apparently unforeseen situation, should the question of advance issuing of 5 and 10n banknotes in particular be reconsidered? In certain countries, from 15 December 2001, the public will be able to purchase a kit containing all euro coins with which they will thus be able to familiarise themselves. In the weeks leading up to 1 January 2000 would it not be a good idea to enable the European general public to purchase 5 and 10 banknotes thereby facilitating the transition to the euro?

Answer given by Mr Solbes Mira on behalf of the Commission

(29 January 2001)

The Member States of the European monetary union (EMU) have agreed to reduce the period of dual circulation of banknotes and coins in 2002 as much as possible. This is in order to reduce the possibility of confusion for the citizens and to alleviate the necessity for the retail sector to operate in two currencies.

A banknote frontloading to the public could in effect lengthen the dual circulation period and could run counter to the reasons that led to its shortening. Moreover, banknote frontloading to the public could entail the risk of early circulation of the notes before 1 January 2002.