Popularity of the euro - with counterfeiters!

The European Commission has announced plans to crack down on counterfeiters throughout the EU, in the wake of figures showing that, while the vagaries of currency markets may have affected the popularity of the euro in financial sectors, the same cannot be said for the criminal fraternity.

EU statistics reveal that counterfeiting of the euro is on the rise, with an increase of 17% in the number of counterfeit euro coins removed from circulation in 2012, when compared to 2011.

Counterfeiting statistics

According to the Commission, with 16.5 billion genuine euro coins currently in circulation, the counterfeit ratio is currently 1 for every 100,000 genuine coins. The 2-euro denomination is by far the most affected, representing almost 2 out of every 3 counterfeit euro coins detected.

As far as counterfeit euro banknotes are concerned, figures from the European Central Bank, which is in charge of protecting banknotes against counterfeiting, reveal that around 531,000 notes were withdrawn from circulation in 2012.

In total, there are around €913 billion worth of euro notes in circulation around the world.

Cost of counterfeiting

The euro was introduced in 2002, and since then counterfeit currency has caused financial damage amounting to at least €500 million, says the EU. It believes that the current measures against counterfeiting are insufficient and, therefore, that an improved protection of the euro is needed at European level.

Proposed Directive

The Commission has therefore put forward a proposal for a Directive setting minimum rules for sanctions, with the aim of protecting the euro and other currencies against counterfeiting through criminal law measures.

The principal points are:

• Member States will be obliged to make effective investigative tools available for detecting currency counterfeiting cases, equivalent to those used to combat organised or other serious crime;
• that a minimum penalty of at least six months imprisonment be introduced for serious cases of production and distribution of counterfeit currency;
• that a maximum penalty of at least eight years be introduced for the offence of distribution; and
• Member States will be obliged to ensure that the National Analysis Centres and the National Coin Analysis Centres are also able to examine euro counterfeits during on-going judicial proceedings to enable the detection of further counterfeit euros in circulation.

Dissuasive criminal sanctions

According to Vice-President Viviane Reding, the EU's Justice Commissioner, the proposal will reinforce the fight against forged currencies with dissuasive criminal sanctions and more efficient investigative measures.

“Counterfeiting of currency by organised criminals undermines public confidence in the currency and impacts heavily on governments, business and individuals alike,” she said. “Those responsible must not go unpunished – it is time we close regulatory loopholes to put a stop to counterfeiting across the European Union."