Economy

Soon there may be a cap on cash payments in the EU

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If you want to pay in cash in Europe, there are very different rules depending on the country. Some EU member states have a legal limit for cash transactions, while others do not. According to information from the “Süddeutsche Zeitung”, the EU Commission in Brussels would therefore like to suggest a uniform limit in the European Union. This should make tax evasion and money laundering more difficult.

In a video conference with representatives from the Member States on Friday, the Commission presented a three-page document which the “Süddeutsche Zeitung“Is available. According to the paper, it says that although the use of cash has decreased overall, cash remains the “instrument of choice for criminals” for money laundering. In addition, the different limits for cash payments would also create unequal conditions for the internal market. Because dealers in countries with high or no cash payment limits could do additional business with criminals in particular.

Limit of 10,000 euros in discussion

Even if there are currently three different options for a decision proposed by the Commission, the favorite, according to the “Süddeutsche”, is clearly an upper limit for cash of ten thousand euros in all member states. The member states are left to set the limit even lower.

The panel’s debate on Friday was just a preparation. In March the commission wants to present further guidelines against money laundering. The discussions about an upper limit for cash in the EU are not new, however. In December, the German Federal Audit Office spoke out in favor of a cash limit and the Brussels-based company presented an action plan in May.

But not everyone thinks the regulation makes sense. The fight against money laundering should not be misunderstood as a fight against cash, said Markus Feber, CSU member of the European Union, the “Süddeutsche Zeitung”. It is also criticized that the Federal Ministry of Finance has not carried out the fight against money laundering properly for years. Introducing a single cap on cash payments across the EU would not simply eradicate crime in this area.

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