News in Brief

ECJ Allows Limits on Paying in Cash

On 26 January the European Court of Justice (ECJ) gave its judgement on the Hessischer Rundfunk case.

The Bundesverwaltungsgericht (Federal Administrative Court in Germany) had sought guidance about whether Hessischer Rundfunk could refuse payment of its radio and television licence fees in euro banknotes. A higher-ranking provision in German federal law said that euro banknotes are to be unrestricted legal tender, but was this compatible with the exclusive competence of the European Union in the area of monetary policy for member states whose currency is the euro?

Cash & Payment News™ will publish a detailed summary of the ECJ’s findings, but, in summary, ‘a euro area member state can oblige its administration to accept payments in cash, but can also limit that payment option on public interest grounds. Such a limitation may in particular be justified where payment in cash is likely to involve the administration in unreasonable expense because of the very high number of persons liable to pay’ is very high’.