Why the EU phases out small coins and how it will work

As of 1 May, eight European countries will not only stop minting 1- and 2-cent coins but will also legally require all shops to round off bills for cash payments. More precisely, seven countries had already made this change earlier, and now Lithuania is joining the "boycott" of 1- and 2-cent coins. However, neither Lithuania nor any of the other countries that have taken this step have declared that the small coins are no longer legal tender, unlike the way Ukraine phased out its small coins.

Read more about why some EU countries have decided to do this, what it means in practice, and why this reform is only "partial" in the EU compared to Ukraine in the joint article by several European publications, including European Pravda - Euro without cents: how EU countries phase out small coins. According to a Eurobarometer survey conducted in late 2024, 61% of residents across eurozone countries support discontinuing the use of 1- and 2-cent coins. Public support for this move has been recorded for several years, but only seven eurozone countries have actually followed through.

In Lithuania alone, support for the reform increased by three per cent over the past year, reaching 69%. Starting next month, cash payments in Lithuanian stores will be rounded to the nearest 5 or 10 cents. For example, a bill of EUR2.03 will be rounded up to EUR2.05, while a bill of EUR2.12 will be rounded down to EUR2.10.

However, shops will not be required to change price tags. In the end, rounding will apply only to cash payments. If you pay by card, you can still pay down to the exact cent as before.

Furthermore, even in countries where rounding is already in place, 1- and 2-cent coins remain legal tender. Stores are still required to accept them and may give them as change. That's because no single eurozone country can unilaterally withdraw these coins from circulation - it would require unanimous agreement among all eurozone members.

One currency means one set of rules. The Bank of Lithuania claims the new rules will simplify cash transactions and reduce the number of coins that get lost or otherwise fall out of circulation. This adds up to a significant amount of money, according to Lithuanian outlet Delfi, about one-third of a million euros' worth of 1- and 2-cent coins disappear each year in Lithuania alone.

Interestingly, Vilnius also emphasises that the reform won't just save the state money but will also help the environment. Lost coins can be ecologically harmful. This argument has been echoed by other EU countries that phased out small euro coins.

Seven eurozone countries - the Netherlands, Belgium, Finland, Ireland, Italy, Slovakia and Estonia - no longer mint or circulate 1- and 2-cent coins and already apply rounding for cash transactions. Still, the debate about phasing out small coins continues across the EU. Twelve countries are not ready to part with them.

The idea faces the most resistance in Southern European countries. According to the latest Eurobarometer findings, in three eurozone countries - Greece, Cyprus and Spain - the majority of citizens are opposed to dropping small coins. But in countries where the reform has taken place, public support for it has noticeably grown.

Experience has shown that for many people, it's simply more convenient.

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