Answer given by Mr Gentiloni on behalf of the European Commission
22.11.2023
The governing rules of the common currency are enshrined in the EU treaties and secondary legislation. Under EU law, euro cash is already protected as legal tender in the euro area: Article 128(1) of the Treaty on the Functioning of the European Union (TFEU) lays down the legal tender status of euro banknotes, and Article 11 of Regulation EC/974/98[1] does so with regard to euro coins.
Moreover, in accordance with the Court’s jurisprudence[2], legal tender entails, in principle, the mandatory acceptance of cash, at full face value, with the power to discharge from a payment obligation.
Since monetary policy in the euro area falls within the EU’s exclusive competence (Article 3(c) TFEU), Member States cannot legislate or adopt legally binding acts in that area, unless the EU empowers them or if they do so for the implementation of EU acts (Article 2(1) TFEU).
The Commission recently adopted a proposal[3] for a regulation based on Article 133 TFEU, aiming at safeguarding the role of euro cash, to ensure it is widely accepted as a means of payment and remains easily accessible for people and businesses across the euro area.
- [1] Council Regulation (EC) No 974/98 of 3 May 1998 on the introduction of the euro, OJ L 139, 11.5.1998, p. 1-5.
- [2] See judgment of 26 January 2021 in Joined Cases C-422/19 and C-423/19, Hessischer Rundfunk; https://curia.europa.eu/juris/liste.jsf?num=C-422/19
- [3] https://ec.europa.eu/commission/presscorner/detail/en/ip_23_3501