The amount of money that people can spend has been severely limited by a new rule established by the European Union. Eurocrats assert that the action is intended to combat money laundering. Some people worry that the EU’s true objective is to make cash illegal.
The amount of money that can be brought into and taken out of the EU has long been regulated by the EU. Anybody crossing the external border of the EU with cash, bonds, gold, or traveler’s checks worth more than €10,000 ($10,900) must complete a cash declaration form. Legislators have now decided to put a cap on cash transactions inside those borders.
On March 28, the European Parliament voted to outlaw cash transactions over €7,000 ($7,600), as well as an even stricter €1,000 limit on purchases made with cryptocurrencies. The European Parliament, which is made up of representatives from every EU state and has the power to pass laws that the 27 member states must abide by.
EU authorities drafted the new law. Legislators in the European Parliament, unlike those in a genuine legislature, can only vote on measures put forth by the non-elected European Commission.
They claim that in order to combat money laundering, the law is crucial. One German political party, nevertheless, feels it goes too far.
The Alternative for Deutschland (AfD) MP from Germany, Dr. Gunnar Beck, claims that the EU now appears to be attempting to outlaw the use of cash. Notwithstanding AfD’s support for a campaign against money laundering, he asserted that any regulations should target Islamist terrorists and organized crime, not regular Europeans.
Beck also disclosed that the AfD’s resistance caused MEPs to back off from their initial demand for a ceiling of just €3,000 ($3,250). It appears that the EU wants to force consumers to use electronic payments, which are simpler to monitor.
The first country to implement such a prohibition, which applied to cash transactions over $10,000 AUD ($6,600) or higher, was Australia.
