Germany Considers Eliminating One- and Two-Cent Coins

The Bundesbank's proposal to round cash transactions to the nearest five cents aims to reduce costs and improve cash efficiency.

The Bundesbank's 'National Cash Forum' has proposed rounding cash transactions to the nearest five cents, potentially phasing out one- and two-cent coins in Germany.
The high production, packaging, and transport costs of small coins, relative to their value, are key reasons behind the recommendation.
Public surveys indicate that a majority of EU citizens find one- and two-cent coins inconvenient and support their removal.
Several EU countries, including Finland, Ireland, and the Netherlands, have already implemented rounding systems for cash payments, though the coins remain legal tender.
A uniform approach to rounding rules across Europe would require broader EU-level agreements, as complete elimination of the coins cannot be decided unilaterally by individual nations.