Feeling short-changed: German town turns back on 1 and 2 euro cents

A network of shops and businesses in western Germany are hoping to clear their tills of small change as part of an initiative starting Monday to phase out 1

Participating retailers in the town of Kleve, situated near the Dutch border, will begin rounding up or down the price of purchases to the nearest 5 cent, in the first case of its kind in Germany, according to the German Trade Association.

Transactions requiring the euro currency's two smallest denominations have simply become too expensive, said Ute Marks, head of Kleve City Network. Bank fees for coin rolls can be a significant cost factor for small businesses.

Over 800 businesses have joined the initiative in the town of 50,000 people, following in the footsteps of eurozone neighbour the Netherlands, where rounding up and down prices has been common practice for years.

Prices will only be changed with the consent of the customer and the new measures do not apply to card payments.

Last update: Sun, 21/08/2016 - 12:57

More from Business

Tobacco giant BAT makes 47-billion-dollar takeover bid for US rival

British American Tobacco Plc said on Friday it has offered some 47 billion dollars to acquire 57.8 per cent of...

ECB to hold rates, decides against extending bond-buying scheme

The European Central Bank left its key interest rates at historic lows on Thursday and left its 80-billion-euro-a-...

Nissan finishes purchase of 34-per-cent stake in Mitsubishi Motors

Nissan Motor has completed its purchase of a 34-per-cent stake in scandal-plagued Mitsubishi Motors for 237 billion...

EU seeks to strengthen trade defence measures as China threat looms

The European Commission proposed a new compromise Wednesday to protect EU industry against unfairly cheap imports,...

Study shows Europeans work 19 per cent fewer hours than Americans

Europeans work on average 19 per cent fewer hours per year than Americans, a new study by three economists from the...