Central Banking

German treasury loses out over euro seigniorage

According to the German economics institute IFO, the introduction of the euro coins and banknotes at the beginning of 2002 will cause a financial loss to the German treasury of DM60bn. This arises from transfer of minting and note printing from Germany's national mint to the European Central Bank. Germany is the biggest loser as a result of monetary union and France is the biggest winner.

The mint generates profit by making coins and notes available to private banks in exchange for deposited s