U.S. Halts Manufacture of Penny Coins - United States Discontinues Manufacturing 1-cent Coins
The United States will cease the production of its 1-cent coin, marking the end of its 230-year run in circulation. New 1-cent coins will no longer be released come early next year, as per reports from several U.S media outlets, who attribute the decision to the Treasury Department and coin producers. The production of the last batch of 1-cent coins has already been ordered, obviating the need for further minting due to their high production costs that exceed their face value.
President Donald Trump had previously called for the discontinuation of these coins due to their costs, with an estimated annual savings of around $56 million (approximately €50 million). The ending of these coin's production will prompt businesses to round prices up or down to the closest 5-cent coin.
In Germany, there is ongoing debate about the viability of its 1-cent and 2-cent coins, which parallels the issues of their economic and environmental costs that are driving the phase-out of pennies in the United States. Unlike several eurozone countries, including Finland, the Netherlands, Slovakia, Ireland, Italy, Belgium, and Estonia, who have implemented mandatory rounding to the nearest 5-cent amount at checkout, Germany has yet to take concrete steps towards discontinuing these coins.
German policymakers and the public recognize the high costs and limited utility associated with the smallest euro denominations, especially as cashless transactions become increasingly prevalent. A majority of Europeans, including Germans, express their favor for abolishing these coins in public opinion surveys like Eurobarometer. However, any official discontinuation would require action at the European level, as countries can only manage circulation locally for now.
The community policy debate in Germany regarding the viability of 1-cent and 2-cent coins mirrors the issues of economic and environmental costs faced by the United States in phasing out pennies. Given the high production costs of these smallest coin denominations, which often exceed their face value, many industries, including finance, are encouraged to support employment policies advocating for their discontinuation to save resources. This could potentially lead to an increase in job opportunities in sectors that focus on implementing alternative methods of rounding prices and promoting cashless transactions.
