EU Court Opinion: Cash must be accepted as legal tender for transactions
Since the birth of the single European currency, the principle that euro banknotes and coins are legal tender has been enshrined in the EU Treaty. Unfortunately, during the Coronavirus pandemic, fake news about a link between cash and the covid-19 virus has scared many retailers. In the wake of a case brought against a German broadcaster, Advocate General Giovanni Pitruzzella of the Court of Justice of the European Union (CJEU) has now stated that people must be allowed to make payments in cash for goods and services, unless expressly stated otherwise in a contract agreed to by both parties. Member States can impose restrictions only when these are justified by overriding public interest.
The Advocate General in today’s Opinion underlined: “the concept of legal tender as regards banknotes and coins must be understood as entailing an obligation in principle for the creditor of a payment obligation to accept banknotes and coins.”ICA Press Release AG Pitruzella Opinion 29 September 2020
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