In Euroland, "pseudo" gets even pseudo-er

Started by chrisild, March 29, 2010, 12:25:08 AM

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chrisild

"Though Euro collector coins are legal tender in the Member State of issuance, this legal tender aims only at distinguishing them form medals. Collector coins should not be used as means of payments. Member States should take all appropriate measures to prevent these coins from circulating (for example, by special packaging, clear communication, use of precious metal, sale prices above face value)."

This is from the European Commission's FAQ regarding the new recommendation on euro cash. Guess that in a few years they will actually start using the term "pseudo-coin", hehe.

Christian

chrisild

In case anybody is interested in further details, this is the "gist" of the recommendation:

* Banknotes and coins should be accepted for their full face value to pay for debts.
* Payments in cash should be the accepted rule. This should only be refused because of the 'good faith' principle - for example, if the retailer does not have enough change.
* It should be the rule to accept high denomination banknotes.
* No surcharges should be imposed on payments in cash.
* Member States should not adopt new rounding rules to the nearest five cent.
* Member States should prevent euro collector coins from being used as means of payment.
* Stained banknotes should be brought back to the National Central Banks as they might be the product of a theft.
* Total destruction of banknotes and coins by individuals in small quantities should not be prohibited.
* Mutilation of banknotes and coins for artistic purposes should be tolerated.
* The competence to destroy fit euro coins should not belong to national authorities in isolation anymore.

See http://ec.europa.eu/economy_finance/articles/euro/2010-03-22-legal-tender-euro_en.htm for detailed info. Whether that will actually result in any practical changes, remains to be seen. If such a recommendation is later endorsed by the Council, it may have some more weight ...

Christian

Figleaf

Yes, clear communication would be good. Let's all send them a kilogram (or 2 pounds if your weights are still pre-revolutionary) of it and hope for the best. At least they make clear what "legal tender" means: not-a-medal. If it's not-a-coin either, what is it?

I fear this may spell the end of the "silver at face" coins. Hiking prices is always an appropriate measure in the eyes of the state.

Peter
An unidentified coin is a piece of metal. An identified coin is a piece of history.

UK Decimal +

Quote from: Figleaf on March 29, 2010, 11:29:39 AM
... At least they make clear what "legal tender" means: not-a-medal. If it's not-a-coin either, what is it?

Medal-coin?

Bill.
Ilford, Essex, near London, England.

People look for problems and complain.   Engineers find solutions but people still complain.

chrisild

Been there, discarded that. ;D These collector coins are NCLT (non-circulating legal tender), except that this term is not very handy. A word like "medal-coin" attempts to hide the difference between a piece that is issued by some government and is legal tender, and something that pretty much everybody can make. In general, if you take a coin to the central bank, you can (at least for a certain period of time) get the face value equivalent in some other form. Try that with a medal.

In my opinion, "pseudo-coin" describes the characteristics of such pieces issued for collectors pretty well. Euro collector coins have never been intended for circulation. In November 1998 for example, roughly a month before the euro was launched as a currency unit, the Council explicitly stated that a collector coin is "defined as commemorative and bullion coin which has legal tender status but which is not produced with a view to its entry into circulation". http://ec.europa.eu/economy_finance/euro/cash/coins/pdf/council_conclusions_1998-05-23_en.pdf  So the new Commission recommendation is not really different from the Council conclusion, but it places a stronger emphasis on the "non-circulating" aspect.

As for other parts of the recommendation, well, destroying the cash that one owns is legal here in DE anyway, except when it is done to an extent that significantly affects the money supply. If the legal situation is different in other euro countries, it would indeed be a good idea to come to a common position. Now the part about discouraging other member states from introducing rounding regulations I do not appreciate ...

Christian