What changed between the draft committee report and the plenary report

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

9 unchanged paragraphs

on the proposal for a regulation of the European Parliament and of the Council on the legal tender of euro banknotes and coins

(COM(2023)0364 – C90216/2023 – 2023/0208(COD))

(Ordinary legislative procedure: first reading)

The European Parliament,

– having regard to the Commission proposal to Parliament and the Council (COM(2023)0364),

– having regard to Article 294(2) and Article 133 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C90216/2023),

– having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

– having regard to the opinion of the European Central Bank of 13 October 2023,

– having regard to Rule 60 of its Rules of Procedure,

Changed:– having regard to the report of the Committee on Economic and Monetary Affairs (A100000/2025),(A10-0184/2026),

1. Adopts its position at first reading hereinafter set out;

2. Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal;

3. Instructs its President to forward its position to the Council, the Commission and the national parliaments.

Change 1

Removed:Recital 6: (6) In order to ensure that the principle of mandatory acceptance of payments in euro banknotes and coins is not effectively undermined by widespread and structural refusals of cash payments, it is necessary for Member States to monitor the level of ex ante unilateral exclusions of payments in cash when transactions are performed in physical premises, such as commercial practices or pre-formulated standard contract terms not individually negotiated, having the object or the effect of excluding the use of cash. Therefore, Member States should regularly monitor the level of unilateral ex ante exclusions of payments in cash when payments are performed in physical premises throughout their territory, in all their different regions, including the outermost regions, covering both urban and non-urban areas, with special attention to sparsely populated areas, on the basis of common indicators which allow for comparisons between the Member States. In conducting their monitoring activities, Member States should take into account citizens’ effective demand for cash and payment habits resulting from changes in their preferences and technological developments. If in light of their assessment acceptance of payments in cash is ensured on their territory, Member States would not need to adopt specific measures in relation to their respective obligation. However, they would need to continuously monitor the situation. If a Member State concludes that ex ante unilateral exclusions of cash under…

Added:AMENDMENTS BY THE EUROPEAN PARLIAMENT*

Removed:Recital 6 a (new): (6a) Member States should provide payers and payees with clear information on the channels and effective remedies they have at their disposal to lodge complaints with competent national authorities about cases of unlawful refusal to accept cash and insufficient and ineffective access to cash.

Added:to the Commission proposal

Removed:Recital 7: (7) With a view to an effective implementation of their obligation to ensure sufficient and effective access to cash in proportion with citizens’ demand, Member States should regularly monitor the level of access to cash throughout their territory, in all their different regions, including the outermost regions, covering both urban and non-urban areas, with special attention to sparsely populated areas, on the basis of common indicators which allow for comparisons between the Member States. In conducting their monitoring activities, Member States should take into account citizens’ effective demand for cash and payment habits resulting from changes in their preferences and technological developments. Common indicators could include factors that affect access to cash, such as density of cash access points in relation to population, withdrawal and deposit conditions, including fees, the existence of different networks with different access modalities for customers, urban, non-urban and low populated areas, and the outermost regions, and socio-economic variations, and access difficulties for certain population groups. If in the light of their assessment access to cash is deemed sufficient and effective on their territory, Member States would not need to adopt specific measures in relation to their respective obligation. However, they would need to continuously monitor the situation. If a Member State concludes that access to cash is not sufficient and effective in all or part of …

Added:---------------------------------------------------------

Removed:Recital 8: (8) The Commission should be empowered to adopt implementing acts on a set of common indicators of general application in the euro area, which should take into account the location and scale of cash-access infrastructure vis-à-vis citizens’ effective demand for cash and payment habits resulting from changes in their preferences and technological developments. Those indicators would allow Member States to effectively monitor and assess the acceptance of payments in cash and access to cash throughout their territory, in all their different regions, including the outermost regions, covering both urban and non-urban areas, with special attention to sparsely populated areas. In view of the preparation of such implementing acts, the Commission should consult the European Central Bank.

Added:2023/0208 (COD)

Removed:Recital 9: (9) The Commission should be empowered to adopt implementing acts addressed to a specific Member State when the measures proposed by that Member State appear insufficient or in cases where, in spite of the findings of the annual report sent by that Member State, ex ante unilateral exclusions of cash are undermining the principle of mandatory acceptance of payments in euro banknotes and coins and/or where access to cash is not sufficient and effective. Such an implementing act could require the Member State concerned to take measures such as those outlined in recitals 7 and 8, or measures that have been considered effective in other Member States in ensuring that the principles of mandatory acceptance of payments in cash or sufficient and effective access to cash in proportion with citizens’ demand are not undermined.

Added:Proposal for a

Removed:Recital 10: (10) In accordance with the principle of sincere cooperation, the Commission, the European Central Bank and the designated national competent authorities with the required powers as regards acceptance of payments in cash and access to cash, and over the cash-related market activities of the cash industry should closely collaborate on issues related to acceptance of payments in cash and access to cash. A regular dialogue among these institutions and authorities, based notably on the annual reports of Member States to the Commission and the European Central Bank, should aim at identifying cases of widespread ex ante unilateral exclusions of cash and insufficient access to cash in specific national territories or regions. It would also aim at designing and adopting remedial measures that Member States should adopt as a means to comply with their obligations to ensure acceptance of cash and sufficient and effective access to cash.

Added:REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

Removed:Recital 11: (11) In order to ensure other adequate exceptions to the mandatory acceptance of euro cash may be introduced at a later stage if they are required, the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission to supplement this Regulation by introducing other adequate exceptions to the principle of mandatory acceptance for the euro area as a whole. The Commission may only adopt such other adequate exceptions if they are necessary, proportionate to their aim, and preserve the effectiveness of the legal tender status of euro cash. The power of the Commission to adopt delegated acts for the introduction of other adequate exceptions to the mandatory acceptance of accept euro cash should be without prejudice to the possibility for Member States, pursuant to their own powers in areas of shared competence, to adopt national legislation introducing exceptions to the mandatory acceptance deriving from the legal tender status in accordance with the conditions laid down by the Court of Justice of the European Union in the judgment in Joined Cases C-422/19 and C-423/19. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making. In particular, to ensure equal participation in the preparation of delegated acts, t…

Added:on the legal tender of euro banknotes and coins

Removed:Recital 13: (13) This Regulation ensures full respect for the fundamental right of freedom to conduct a business and the fundamental right of consumer protection enshrined in Article 16 and 38 of the Charter of Fundamental Rights of the European Union respectively. This Regulation concerns the preferred payment method of the currency that has legal tender status, which payers legitimately may choose to settle their debts. Thus, the measures in this Regulation only concern the way enterprises receive payments. The interference with those fundamental rights is therefore indirect and very limited. It is justified by the general interest objective of ensuring the effectiveness of legal tender, and is proportionate to this objective.

Added:THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Removed:Recital 14: (14) The share of cash payments compared to electronic payments could vary across certain vulnerable groups including older age groups, persons with disabilities, and people with limited digital skills and lower income levels. This proposal is consistent with the European Accessibility Act18, which covers automated teller machines (ATMs). Furthermore, financially excluded people, such as the unbanked, asylum seekers and migrants, who may not be able or willing to use means of payment supplied by the private sector, rely on cash as their payment method. Cash is considered to provide for a clear overview of expenses, with high degrees of ease of use, speed, safety and privacy. Vulnerable groups are more at risk of losing their access to a method of payment if their access to cash deteriorates. Thus, this Regulation would aim to preserve financial inclusion of vulnerable groups with a dependency on cash payments by ensuring that everyone in the euro area would be free to choose the preferred payment method and has access to basic cash services, while supporting Member States in continuing their policy efforts to promote digital financial inclusion, for example through measures aimed to increase financial and specifically digital finance literacy in education and training systems, as well as to address gaps in digital infrastructure, including in rural areas.

Added:Having regard to the Treaty on the functioning of the European Union and in particular Article 133,

Removed:Article 2 – paragraph 1: 1. This Regulation applies, in the Member States whose currency is the euro, to the settlement of pecuniary debts in so far as they are to be settled in cash, in whole or in part, where a payment obligation exists in accordance with the applicable law or established legal practices. To ensure the effectiveness of the legal tender of cash, this Regulation applies also to ex ante unilateral exclusion of payments in cash and to the access to cash.

Added:Having regard to the proposal form the European Commission,

Removed:Article 3 – paragraph 1 – point 4: 4. ‘ex ante unilateral exclusions of cash’ means a situation when a retailer or service provider unilaterally excludes cash as a payment method for example by introducing a ‘no cash’ sign or by using a pre-formulated standard form contract, creating a situation where the payer and payee do not freely agree to a means of payment for a purchase;

Added:Having regard to the opinion of the European Central Bank,

Removed:Article 3 – paragraph 1 – point 8: 8. ‘enterprise’ means an entity engaged in an economic activity, irrespective of its legal form, including partnerships or associations regularly engaged in an economic activity.

Added:Acting in accordance with the ordinary legislative procedure,

Removed:Article 5 – paragraph 1 – subparagraph 1 – point b: (b) where, prior to the payment, the payee has agreed with the payer on a different means of payment, without prejudice to Article 5a.

Added:Whereas:

Removed:Article 5 – paragraph 1 – subparagraph 2 a (new): For the purposes of point (b), the payee shall have the burden of proof to establish that such an agreement existed in a particular case.

Added:(1) According to Article 3(1), point (c), of the Treaty on the Functioning of the European Union (TFEU), the Union has exclusive competence as regards monetary policy for the Member States whose currency is the euro.

Removed:Article 5 – paragraph 2 – introductory part: 2. For the purposes of the application of paragraph 1, point (a), such legitimate grounds may include:

Added:(2) Pursuant to Article 128(1) of the Treaty on the Functioning of the European Union and Article 10 of Council Regulation (EC) No 974/98 the euro banknotes are to be the only banknotes which have the status of legal tender in Member States whose currency is the euro. Pursuant to Article 11 of Regulation (EC) No 974/98, euro coins shall be the only coins which have the status of legal tender in the Member States whose currency is the euro.

Removed:Article 5 a (new): Article 5a / Prohibition of ex ante unilateral exclusions of cash / Payees subject to the obligation to accept euro banknotes and coins shall use only contractual terms that have been individually negotiated or commercial practices (e.g. ‘no cash’ signs) that have the objective or effect of excluding the use of euro banknotes and coins by payers of monetary debts denominated in euro. / Contractual terms or commercial practices as referred to in the first subparagraph shall not be binding on the payer. / Contractual terms shall not be regarded as having been individually negotiated where they have been drafted in advance and where the payer has not been able to influence their substance, particularly in the context of a pre-formulated standard form contract.

Added:(3) Commission Recommendation on the scope and effects of legal tender of euro banknotes and coins provides for a common definition of legal tender of euro banknotes and coins.

Removed:Article 6 – title: Other adequate exceptions to the principle of mandatory acceptance of euro banknotes and coins of a monetary law nature

Added:(4) In a judgment of 26 January 2021, the Court of Justice of the European Union clarified that the concept of ‘legal tender’ mentioned in Article 128(1) TFEU is a concept of Union law that must be given an autonomous and uniform interpretation throughout the EU. Secondly, the Court held that the concept of ‘legal tender’ of a means of payment denominated in a currency unit signifies that “that means of payment cannot generally be refused in settlement of a debt denominated in the same currency unit, at its full face value, and without surcharges for the payer, with the effect of discharging the debt”. Thirdly, the Court stated that an obligation to accept euro banknotes and coins may, in principle, be restricted by the Member States whose currency is the euro for reasons of public interest and pursuant to their competences outside of the area of monetary law and policy and of other exclusive Union competences, provided those restrictions are justified by a public interest objective and proportionate to it.

Removed:Article 6 – paragraph 1: The Commission is empowered to adopt delegated acts in accordance with Article 10 to supplement this Regulation by identifying other adequate exceptions of a monetary law nature to the principle of mandatory acceptance. Those exceptions shall be justified by an objective of public interest and proportionate to that aim, shall not undermine the effectiveness of the legal tender status of euro cash, and shall only be permitted provided that other means for the payment of monetary debts are available. When preparing those delegated acts, the Commission shall consult the European Central Bank.

Added:(5) The acceptance of euro banknotes and coins tendered as means of payment can exceptionally be refused if the refusal is made in good faith, based on legitimate grounds and concrete circumstances, which are beyond the control of the payee, and if the refusal is proportionate. For example, the refusal can be justified if for the settlement of a monetary debt the tendered euro banknote is disproportionate compared to the amount owed to the payee, such as the tendering of a two hundred euro banknote for the settlement of a debt of less than five euro. In accordance with Council Regulation 974/98, except for the issuing authority and for those persons specifically designated by the national legislation of the issuing Member State, no party should be obliged to accept more than 50 coins in any single payment. Other legitimate grounds should include exceptional cases such as when the payee has no change available at the moment when cash is tendered in payment, or situations where the characteristics of bankotes or coins tendered by the payer do not comply with counterfeiting prevention or anti-money laundering and combating the financing of terrorism financing standards.Contractual requirements or technical restrictions imposed by third parties should not constitute legitimate grounds for the refusal of euro banknotes and coins.

Removed:Article 7 – paragraph 1: 1. In order to ensure the acceptance of cash in accordance with Article 4(2), Member States shall monitor the acceptance of payments in cash and the level of ex ante unilateral exclusions of payments in cash throughout their territory, in all their different regions, including the outermost regions, in both urban and non-urban, in particular sparsely populated, areas, on the basis of the common indicators adopted by the Commission and shall assess the situation.

Added:(5a) The acceptance of euro banknotes and coins tendered as means of payment should also be able to be refused where, prior to payment, the payee has agreed with the payer on a different means of payment. Where there is any doubt as to the existence of such an agreement, the burden of proof should always lie with the payee. Lastly, banknotes and coins tendered as means of payment should be able to be refused where the point of sale is an unmanned point of sale, in view of the mechanical and security constraints inherent in such points of sale. Without prejudice to the need to have access to essential services for all citizens, in some cases, unmanned cashless points of sale can prove to be the most economical solution to offer services, especially where the provision of cash would produce disproportionate costs given security and accessibility reasons, which could hamper the offering of services.

Removed:Article 7 – paragraph 3: 3. If a Member State considers that the level of acceptance of payments in cash in their territory or parts thereof undermines mandatory acceptance of euro banknotes and coins, it shall set out the remedial measures it commits to take in accordance with Article 9(4). To that end, the Member State shall establish an effective, proportionate and coherent enforcement mechanism.

Added:(6) In order to ensure that the principle of mandatory acceptance of payments in euro banknotes and coins is not effectively undermined by widespread and structural refusals of cash payments, payees who are subject to the mandatory acceptance of euro banknotes and coins should not unilaterally exclude payments in cash through contractual terms that have not been individually negotiated. That includes commercial practices which are based in the context of a pre-formulated standard form contract or which have been drafted in advance, such as ‘no cash’ signs, that have the object or effect of excluding the use of euro banknotes and coins by payers of monetary debts denominated in euro. Therefore, Member States should regularly monitor the level of unilateral ex ante exclusions of payments in cash when payments are performed in physical premises throughout their territory, in all their different regions, including the outermost regions, in both urban and non-urban, in particular sparsely populated, areas, on the basis of common indicators which allow for comparisons between the Member States. If in light of their assessment acceptance of payments in cash is ensured on their territory, Member States would not need to adopt specific measures in relation to their respective obligation. However, they would need to continue monitoring the situation. If a Member State concludes that ex ante unilateral exclusions of cash undermine the mandatory acceptance of payments in euro banknotes and coins in all or part of its territory, that Member State should take immediate effective and proportionate measures to remedy the situation, such as a prohibition or restrictions on ex ante unilateral exclusions of cash in all or parts of its territory, for example in rural areas, or in certain sectors which are deemed essential such as post offices, supermarkets, pharmacies or healthcare, or for certain types of payments which are deemed essential.

Removed:Article 8 – paragraph 1: 1. Member States shall ensure sufficient and effective access to cash in proportion with citizens’ demand throughout their territory, in all their different regions, including the outermost regions, in both urban and non-urban, in particular sparsely populated, areas. In order to ensure sufficient and effective access to cash, Member States shall monitor access to cash throughout their territory, in all their different regions, including the outermost regions, in both urban and non-urban, in particularsparsely populated, areas, on the basis of the common indicators adopted by the Commission and shall assess the situation.

Added:(6a) Member States should provide payers and payees with clear information on the channels and effective remedies they have at their disposal to lodge complaints with competent national authorities concerning cases of unlawful refusal to accept cash and insufficient and ineffective access to cash.

Removed:Article 8 – paragraph 3: 3. If a Member State considers that sufficient and effective access to cash is not ensured, it shall set out the remedial measures it commits to take in accordance with Article 9(4). To that end, the Member State shall establish an effective, proportionate and coherent enforcement mechanism.

Added:(7) With a view to an effective implementation of their obligation to ensure ▌effective access to cash, Member States should regularly monitor the level of access to cash throughout their territory, in all their different regions, including the outermost regions, in both urban and non-urban areas, in particular sparsely populated areas, paying particular attention to the needs of vulnerable groups, such as older persons, persons with disabilities, people with low income or low digital skills and unbanked persons, on the basis of common indicators which allow for comparisons between the Member States. Common indicators could include factors that affect access to cash, such as density of cash access points (such as ATM’s, over-the-counter services, cash-back agrements and mobile offices) in relation to population, withdrawal and deposit conditions, including fees, the existence of different networks with different access modalities for customers, urban-rural and socio-economic variations, and access difficulties for certain population groups. If in the light of their assessment access to cash is deemed ▌effective on their territory, Member States would not need to adopt specific measures in relation to their respective obligation. However, they would need to continue monitoring the situation. If a Member State concludes that access to cash is not ▌effective in all or part of its territory, or is at risk of deteriorating in the absence of action, appropriate remedial measures should be taken to remedy the situation, such as geographic access requirements on payment service providers providing cash withdrawal services to maintain cash services at a sufficient number of their branch offices where they conduct business, or through an appointed agent for online only credit institutions, or maintain a sufficient density of automated teller machines (ATMs) where they conduct business taking into account a good geographic spread in relation to population, also taking into account possible pooling of ATMs. Other remedial measures could include recommendations addressed to non-credit institutions, such as independent ATM operators, retailers or post offices, encouraging to complement the cash services of banks. Member States should also consider ways of promoting operational efficiency, including through voluntary guidelines or partnership agreements with payment service providers.

Removed:Article 9 – paragraph 2: 2. For the purposes of Articles 7 and 8, the Commission shall adopt implementing acts of general application on a set of common indicators Member States shall use to monitor and assess the acceptance of payments in cash and access to cash in proportion with citizens’ demand throughout their territory, in all their different regions, including the outermost regions, in both urban and non-urban, in particular sparsely populated, areas. Those implementing acts shall be adopted [within X months after the entry into force of this Regulation] in accordance with the advisory procedure referred to in Article 11. When preparing those implementing acts, the Commission shall consult the European Central Bank.

Added:(7a) Member States should establish cash resilience plans to ensure effective access to cash in situations where there is widespread and severe disruption of the continuity of digital means of payments, or where there is at least a credible and imminent risk of such disruption, affecting, in whole or in a part, the territory of a Member State or several Member States of the euro area. Those plans should include a combination of measures for different scenarios leading to such a disruption, including natural or human-made disasters, and provide for risk mitigation solutions.