Proponents fear the abolition of cash, experts see no reason to worry despite EU plans to impose an upper limit
Vienna (PK) – On the referendum “CASH payment: upper limit NO!” signed by around 121,000 people. (2080 d.B.) took place today in Finance Committee of the National Council a public hearing took place. The initiators of the referendum want to avert an abolition of cash and a restriction on cash payments, contrary to the EU’s efforts for an upper limit on cash payments “to protect freedom”.
It was only in May that a detailed hearing with several experts took place on the occasion of another referendum on the same topic (see Parliamentary Correspondence No. 496/2023 and 500/2023 ), which was referred to by the MPs. The OeNB representative Matthias Schroth, invited as an expert today, assumes that there will be an EU-wide upper limit, but that there is no fear of an abolition of cash. According to the ÖVP and the Greens, this would not be up for debate.
The FPÖ shares the proponents’ demand for cash to be anchored in the constitution. The SPÖ sees advantages in the planned upper limit regulation in terms of combating crime, while the NEOS perceive it as problematic. For the representative of the referendum, Werner Bolek, the question remained open as to what Austria would do to prevent the “threatening” EU regulation.
Referendum initiators: Cash means freedom
Cash means freedom and should neither be restricted nor abolished, said the representative of the referendum, Werner Bolek. It must be retained in its current form. In the committee, he therefore supported the call for a constitutional law to permanently secure unrestricted cash payments, as did the deputy representative of the referendum, Anatolij Volk. In his opinion, the EU negotiations to introduce an EU-wide cash payment limit could lead to the gradual abolition of cash. Volk also assumes that there is a democratic deficit in Austria. Citizens have little trust in politics, he said, and together with another deputy – Marcus Hohenecker – spoke out in favor of generally taking issues of co-determination and referendums seriously.
According to experts, there is no need to fear the abolition of cash
The director of the cash, investments and internal services department of the Austrian National Bank, Matthias Schroth, explained the EU plans. Trilogue negotiations on an EU regulation are currently underway, which involves the introduction of an upper limit for cash payments between €7,000 and €10,000. He believes there will probably be a decision. This would be of considerable importance for Austria, as EU legislation would take precedence over the constitution. An Austrian constitutional regulation would not change anything about an upper limit. The development remains to be seen, but there is no need to fear that cash will be abolished if it is then replaced by the digital euro. Cash would come under increasing pressure in terms of the cash supply and obligation to accept cash, but the public would support the cash, said the expert. In his opinion, the aspect that there are not only unfair but also “fair” motives for cash should not be neglected in the political debate. The OeNB is convinced that the supply of cash is one of the banks’ core tasks, which will probably require the development of further rules in the future, said Schroth.
Cash is the most commonly used means of payment in Austria
The issue of cash would keep people very busy, said Peter Haubner (ÖVP). There is no question of abolishing this if he wanted to address the concerns raised by the proponents. Cash remains the number one means of payment in Austria and is important for personal freedom, fundamental rights and social inclusion. It is a safe and also cheap means of payment.
According to Jakob Schwarz (Greens), there are no moves at national or European level to abolish cash; only an upper limit is being discussed in the EU committees. In Austria, cash is protected simply because it is used a lot, he said. He does not consider it to be anchored in the constitution as the means of payment is simply protected by law. The Greens would also support freedom to choose the means of payment.
The SPÖ’s principle on the issue of cash supply – which does not work ideally everywhere – is that there should be at least one ATM in every municipality in Austria, said Kai Jan Krainer (SPÖ). The banking system should bear the costs for this. In his opinion, the basis for an obligation to accept cash is laid down in the National Bank Act. If this is not enough, a “stronger” law would probably be needed. But the most important thing is practice, he said. On the subject of the upper limit, he said that from a sum of around €10,000 or €15,000, money laundering regulations should be used to ensure that cash is not misused, for example for drug transactions.
Cash has “immense” importance for the Austrian population, said Hubert Fuchs (FPÖ). However, under the guise of combating money laundering, terrorist financing or drug dealing, attempts are being made again and again to restrict the associated freedoms, he said. When it comes to cash, people act as if there is no crime in the world of cryptocurrencies, he criticized. The FPÖ finance spokesman emphasized that his group is a clear advocate of cash and its anchoring in the constitution. The introduction of an upper limit should be rejected and the acceptance obligation should be tightened.
The NEOS are supporters of cash but against an upper limit, explained Gerald Loacker (NEOS). Such a system would be impractical and rigid, he said. In his opinion, the best thing you can do to preserve your cash is to use it often. Basically, every form of payment transactions costs something, including cash, he said on the aspect of ATM availability raised by the SPÖ parliamentary group. “More honesty would also help the cash,” said Loacker. (Finance Committee continued) fan
NOTE: The hearing is available as video-on-demand Parliament’s media library available.
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