One And Two Cent Euros Cost More Than They’re Worth

Billions of euros are being injected into financially deteriorating countries across Europe to help encourage spending and avoid bankruptcy. Instead of looking to leading economies for support, it seems Europeans should instead be looking to the pennies in their pockets.

NewEurope reports that the European Commission has expressed concern over a rising problem with the small change in Europe. They have recently been consulting with business and consumer organizations, financial ministers and central banks about the benefits and disadvantages of continuing the production of the one and two cent coins.

The commission reported that issuance and production of the coins actually costs more than the coins’ worth. In any business sense, regardless of government affiliation, if costs are exceeding revenue then it’s probably time to cut your losses.

EC member, Olli Rehn, explained, “The production of one and two cent coins is clearly a loss-making activity for the euro area with the difference between the face value of the coins and the price paid by the state to get them pointing at an estimated total cumulative loss of €1.4 billion since 2002.”

Aside from production costs remaining high, NewEurope reports that the distribution and handling fees are also extremely expensive. Handling fees can cost up to 40 cents per roll of 50 one cent coins.

Over half of the coins being made in Europe these days are either one or two cent coins. The numbers are colossal, as roughly 46 billion of these type of coins exist, which amounts to a total value of €714 million.

What’s more, the EC expressed concern that many people are constantly losing small change, thus causing a need for increased production.

Aside from a few consultation meetings it seems that the EC has made no further announcements as to how they will address the small coins debacle for the future. Until then, try not to lose your ones and twos.

To read the full story at NewEurope click here.