European Central Bank: The 500 euro note threatened with closure – Tagesspiegel

It is the largest euro bill: It measures 160 by 82 millimeters, is purple and shows modern 20th century architecture. It is also in terms of value, the largest bill: 500 euros. End of March, data European Central Bank (ECB), according to the exact 594 417 006 of these bills, worth some 297 billion euros in circulation. Very few citizens have kept him once in the hand. And the chance it will fall further. For the future, it should no longer be the 500 euro note the intention of the ECB. On Wednesday, as experts and economists are confident the Governing Council will decide the end for the 500. Without course, to name a specific date. The bill remains legal tender, although he now hardly accept transactions.

Finally, adhere to the purple bill a dubious image. Especially for criminal purposes he would use, believes ECB President Mario Draghi. The 500-euro bill is a tool for illegal activities. Drug trafficking and money laundering are the main focus are So is off the 500, the Italians suggests for some time. And believe the majority of the Governing Councils behind.

One that Draghi is not convincing in this respect, is Bundesbank President Jens Weidmann. The already holds nothing of the discussion about the 500 nothing and its abolition. Without the biggest euro bill less illegal transactions will be – Weidmann dismisses. “Do you think that criminal activity was omitted because there is no longer the 500 euro note?”, The Bundesbank president says.

From the largest euro banknotes

He fears also that confidence suffers in the single currency when the end for the biggest Euro banknote comes. The citizens could get the impression that they are gradually withdrawn from the cash. It notes were the only legal tender. And the Bundesbank argued repeatedly that it

should be left to the citizens, as if to pay in shops

it is also clear. It is not easy to abolish and to collect the 500. Finally, the approximately 595 million bills would have to be replaced by other denominations, probably mainly 100 and 200, would have to be from those printed billions of pieces and put into circulation. Internal estimates the ECB alone printing costs reportedly to around half a billion euros. The preparation of a bill will cost an average of about nine cents. If the new bills are to be produced quickly, it is more expensive According to experts. This to the detriment of the profit of the ECB. That was in 2015 approximately 1.1 billion Euro. This would also meet the Bundesbank since the Governing profit is distributed according to the proportions of the respective central bank at the ECB. And the Bundesbank holds about a quarter.

longitudinal Report also trade and crafts to speak. Even an industry that with 500 euro notes hardly likely to come into contact and are baked in the only small rolls. “The bakery trade talks is clearly against any kind of restriction of cash payments,” said Daniel Schneider, chief executive of the Association of German Bakers. And also refers to data protection. “The bakery industry recognizes the ECB plans to limit cash transactions a further step of glassy consumers and for total surveillance of citizens.” Baker will therefore rejoice more when customers pay the bun with a 500ter.