Plans to reduce it are shelved cash limit in transactions for 200 euros out of 500 that apply today, since it is assumed that the reaction European Commission And her European Central Bank will be negative.

The idea has been mooted recently as it was found that the widespread use of electronic transactions in the wake of the coronavirus helped fight tax evasion and—with the help of inflation—significantly boosted tax revenues. However, the €200 limit is very low and it is considered clear that the opinions of the European institutions will not be harmonized. The rationale, according to bank sources, is that euro banknotes are legal tender and support a part of the economy that cannot be served in other ways.

In the event of a decrease 200 eurosin addition, their banknote would be completely excluded from transactions 500 Euro, characteristically notes a source in the government. Something that cannot happen.

Indeed, less than a year ago, the ECB, on its own initiative, issued a negative opinion on the relevant Spanish legislation, which indicates how important it considers this issue.

It is noted that Spain wanted to limit the limit to 1,000 euros in professional and business transactions. The ECB noted in its opinion that this would have a negative and undesirable impact on the legal tender status of euro banknotes. The European Court of Justice was even involved, which recognizes the possibility of Member States to impose restrictions on grounds of public interest, but without exceeding certain limits.

These opinions have certainly not changed, although according to a competent source in the banking industry, the Commission is of the same opinion. “The ability to pay in cash remains extremely important for certain groups of society who, for various legitimate reasons, prefer it to other means of payment,” the ECB said in a statement.

In Greece, POS transactions account for 48% of transaction value, compared to an average of 42% in the Eurozone, according to a recent study by the ECB, but their share has declined significantly by 12% compared to 2019.