Will there soon be an upper limit for cash payments? The European Commission advocates a limit of 10,000 euros and Parliament wants to lower the limit further. The resistance – also from Austria – is great.
Billions of dollars in illicit revenue are laundered in the EU every year, and the illicit money flows fund terrorism and corruption. Brussels now wants to intensify the fight against money laundering. However: part of the planned package is particularly controversial in many countries, including Austria – an upper limit on cash.
The EU parliament advocates a maximum of 7,000 euros
The Commission proposes a limit of 10,000 euros, the European Parliament wants to tighten the screws even more and advocates a maximum of 7,000 euros. This is met with great resistance, especially in Austria, where cash is still the most popular means of payment. While in other countries people usually only pay by card or mobile phone, the majority in this country still like to use notes and coins.
Austria against upper limit
No wonder then that Finance Minister Magnus Brunner emphasized some time ago that he was against upper limits in principle. “That is and will remain the Austrian position,” says the Ministry of Finance.
Huge patchwork carpet in Europe
In Europe there is a huge patchwork when it comes to cash. In 18 EU Member States there is an upper limit – at different levels. The strictest is Greece, where any amount above 500 euros must be paid by bank transfer or card. At the other end of the scale is Croatia, where the limit is 15,000 euros.
As so often in the EU, a quick agreement is not in sight. Because now negotiations between parliament and the federal states are about to start. And the views are varied.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
