Five eurozone countries are taking action against € 500 banknotes

Italy, France, Spain, Belgium and the Netherlands are calling on the EU authorities to take action against the use of € 500 banknotes. According to states, these banknotes facilitate money laundering and organized crime activities. In a joint document, the five countries call on the European Commission and the European Central Bank (ECB) to gradually withdraw the highest denomination of euro banknotes, the Italian economic daily Il Sole 24 Ore reported. The European Central Bank stopped issuing new 5-euro banknotes as early as 2016. However, previously issued banknotes are still valid in the euro area. "The latest data from the end of February show that there are still about 400 million banknotes in circulation with a total value of 200 billion euros," five countries pointed out. Compared to the end of 2015, the number of these banknotes in circulation decreased by about 35 percent. Part was withdrawn due to wear and tear and was not replaced after 2016. But states would like to speed up the end of their use. They called on the European Commission, together with the ECB, to consider phasing them out. States recall older commission documents that this type of banknote is in high demand in an organized crime environment. It allows large cash transfers without taking up a lot of banknotes. As part of the fight against money laundering and tax evasion, states are also calling for the introduction of a limit on cash payments of EUR 5,000. At the end of July, the European Commission proposed the introduction of a limit of 10,000 euros, which five countries consider an ineffective measure. In some EU countries, significantly lower limits already apply today.