FRANKFURT (AFX) - Germany might eventually decide to scrap one and two cent
euro coins from circulation, in part as a cost-cutting measure, Handelsblatt
reported.
The financial daily quoted Wolfgang Soeffner, the Bundesbank's head of
circulation, as saying: "We could imagine a solution of this kind for Germany".
Germany could follow the lead of Finland, which has already rounded up or
down all retail prices to the nearest five cents, thereby removing one and two
cent pieces from the equation, the newspaper added.
The smallest two coin denominations now cost more to produce and transport
than their nominal value, following recent sharp rises in the price of steel.
German retailing Association HDE told the newspaper it is against the
proposal because it would revive the 'teuro' debate.
Germans christened the euro 'teuro' - 'teuer' means 'expensive' - when it
replaced the deutsche mark because of the widespread perception that the
country's retailers took advantage of the currency switch to round prices up
rather than down.
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