WRITTEN QUESTION E-0599/00 by Hugues Martin (PPE-DE) to the Commission. Exchanging banknotes in national currencies for euro.
28. 12. 2000 EN Official Journal of the European Communities C 374 E/117 The Commission is currently preparing the revision of Directive 97/66/EC of the Parliament and of the Council of 15 December 1998 concerning the processing of personal data and the protection of privacy in the telecommunications sector (2). The provisions concerning privacy will attempt to take into account the current and future technological developments. (1) Debates of the European Parliament (March 2000). (2) OJ L 24, 30. 1. 1998. (2000/C 374 E/137) WRITTEN QUESTION E-0599/00 by Hugues Martin (PPE-DE) to the Commission (29 February 2000) Subject: Exchanging banknotes in national currencies for euro On 1 January 2000, all cash held in the national currencies of the countries in the euro-zone must be converted into euro. Many citizens keep sums of money in cash at home, the origins of which are perfectly legal, but which have not been declared to the tax authorities. The origins of these sums of money may be various and reflect the tradition of cash payment and what is known in popular French culture as savings kept áunder the mattressí. Converting this cash into euro will mean that holders will have to declare the money to the tax authorities and pay tax or even fines. Unless preventive action is taken, there is a definite risk of tax evasion occurring as a result of funds being channelled through countries outside the euro-zone, or even of fraud. Although only a rough estimate can be made of the amount of money involved in each country, the national banking authorities estimate that the amounts are not insignificant and that large-scale tax evasion could have an adverse effect on the economies of the euro-zone. In addition, depending on how strict an approach is taken in each of the Member States, there is a danger of harmful tax competition occurring within the Union. One solution may be the reinvestment of these sums of money, under certain conditions, in the national economies. Has the Commission addressed the problem, in particular as part of the tax package that is currently being discussed? If so, can it explain what proposals it has made? If not, does it intend to look into the issue? Answer given by Mr Solbes Mira on behalf of the Commission (27 April 2000) In order to avoid complicating the conversion of banknotes in 2002, the Member States do not wish to create new controls in addition to those already in place. Under Council Directive 91/308/EC of 10 June 1991 on prevention of the use of the financial system for the purpose of money laundering (1), banks will simply have to check the identity of customers converting a sum of over € 15 000 in one or more transactions. Coins and notes will be converted free of charge for bank customers provided that the sums involved are áhousehold amountsí. It will often be possible to exchange notes at commercial banks for several months after they cease to be legal tender. The exchange period will be longer at the central bank, usually about ten years, or sometimes indefinite, as in Belgium. (1) OJ L 166, 28. 6. 1991