This is part of the so-called "war on cash", with government seeking tighter control over the population and the economy. If it's paid in cash, government can't track it, so government wants to make it illegal, forcing people to have to use banks or electronic money transfer methods, for any large transaction. The European Council agreed on its position on an "anti-money laundering anti-money regulation" and a new directive (AMLD6) aimed at "protecting EU citizens and the EU’s financial system against terrorist financing." The directive includes a limit on cash payments exceeding €10,000. The question of limitations on cash payments has been topical in Europe ever since the Global Financial Crisis. Seventeen out of 27 Member States of the European Union already have cash payment limitations, ranging from €500 in Greece to over €14,000 in Poland. With an EU wide-limitation of €10,000, 13 countries would see existing constraints increase. Greece, France, Spain, Italy, Portugal, and several Eastern European countries currently have the lowest thresholds. In December 2022, Italy's prime minister Giorgia Meloni proposed to lift the legal limit for cash transactions to €5,000, reversing a pledge by previous Italian governments to cut the limit from €2,000 to €1,000. Meloni also wants to give merchants the right to refuse to accept digital payments for transactions below €60 without fear of penalty. European Council Agrees on a €10,000 Limit on Cash Payments – Cash Essentials - December 20, 2022 In France and Italy, the limit for cash payments is 1000 euros and 3000 euros. Failure to comply with the rules is subject to a fine of 3,000 to 15,000 euros. In these two countries, the primary motivation for these limits is the fight against tax evasion. The European Commission wants to introduce a limit on cash payments (biteffect.net) The Netherlands, Belgium, France, Italy and Spain together had petitioned the European Commission to limit the amount an individual can pay in cash within the European Union to 5 thousand euros. They also asked that the 500 euro note be taken out of circulation, caretaker Finance Minister Wopke Hoekstra said in a letter to parliament. Both these measures are intended to help combat organized crime and money laundering. Cash poses a major risk as it is anonymous and untraceable. The Netherlands has been calling for a cash limit of 3 thousand euros for some time, but could not find enough support for that amount among other EU Member States. EU asked to ban cash payments of over €5,000 in money laundering fight | NL Times - September 2021 The Italian government’s draft budget for 2023 will increase the ceiling for cash payments to €5,000 ($5,280), despite criticism from a Bank of Italy official. Under current law, Italians may use cash for payments of up to €2,000, but this ceiling had been set to fall to €1,000 from January 1. The new budget will instead raise that limit. Italy to allow larger cash payments despite central bank objections - Central Banking - December 9, 2022
