Will re be a 500 euro bill again? The Council of European Central Bank (ECB) decided in May last year to no longer issue banknote from end of 2018. At this point, revised 100 and 200 euro notes are to be introduced. The purple 500ER should be abolished in order to complicate terrorist financing and undeclared work. The 500ER has been produced for last time in 2014, and since Governing Council decision, less of big bills have been circulating.

However, re may be a new 500 euro bill in a few years ' time. "The decision of Governing Council not to issue it anymore refers only to second series of banknotes with new security features," said Bundesbank chairman Carl-Ludwig Thiele of DPA. "A new banknote series will probably come in euro area over next decade."

The Bundesbank was opposed to production of 500 euro bill. "This action did not enlighten me," said Thiele. It is debatable wher crime can be combated. The changeover also costs a lot. "For compensation, more 50s, 100s and 200ER will have to be produced," said Thiele. The Bundesbank must bear about a quarter of se costs.

Thiele has little to say about cash ceilings – as y are in France or Italy, for example – "I do not know that re is less crime in countries with an upper limit than in Germany without a limit." It is better to fight crime itself. "People might orwise get impression that symptoms, but not causes, are being fought."

Debate about cash

The abolition of 500ers and consideration of possible cash ceilings also had a debate on future of banknotes and coins. The debate has insecured consumers. "In population re is quite a concern that cash is being abolished," said Thiele. According to a recent ECB study, surprisingly many consumers in euro area are paying big bills: almost 20 percent of more than 65,000 respondents said y had last 200 or 500 euro notes.

According to ECB study, Germany's consumers are cash kings in Europe: on average, 103 euros were contributed by federal citizens last year – in euro countries it was 65 euros.

The people of Germany, however, are not alone in euro area. Although 80 percent of transactions in Germany are paid in cash. But it is still more in Malta (92 percent), Cyprus (88), Spain (87) and Italy (86). In euro area average, 79 percent of all payments at store were settled with cash, but only by a large margin follow card payments with 19 percent.

Date Of Update: 18 December 2017, 12:02