European Central Bank President Christine Lagarde.
Paper money is being less and less used. So why are residents across Europe being advised by the European Central Bank to have between 70 € and 100 € at home?
According to a European Central Bank study published this week, it is advisable to keep some money at home – something between 70 and 100 euros.
The, entitled “Keep Calm and Carry Cash” (“Keep calm and have money”) analyzes the Role of physical money for four recent crises in Europe.
In the latest crises because Europe has gone, regardless of the type of crisis in question-whether financially, such as the 2008, military, such as the Ukraine or Public Health War, such as Covid-19 pandemic- The demand and use of money in kind have increasedconcluded the study.
“The emergence of sudden crisesLike the 2008 financial turmoil, the sovereign debt crisis in Greece in 2014-2015, the outbreak of Covid-19 pandemic or the unjustified large-scale invasion of Ukraine by Russia in 2022, provoked immediate and extreme increases in the acquisition of money In kind by the public, ”notes the report.
As a result, the ECB suggests that Let us keep some extra notes at homein the case of Failure of electronic payment systems.
For other words, most people in Europe are used to paying by card or through mobile applications, but if they fail in a crisis, money in kind will become essential, the bank says.
Thus, we must keep at home “money enough to cover needs for 72 hours“.
The ECB says that having money at home can failure in electronic payment systems, something that It has happened in the past. According to the bank, the money in kind is a “Critical component from national preparation for crises. ”
In the case of a large electric failurelike that of the blackout that occurred in Portugal and Spain last April, of a massive cyberathery or a pandemic, the physical money offers a “low cost protection against instabilities Serious systemic, ”he says or document.
In addition to encouraging citizens to be prepared, the European Central Bank also encourages governments and banks to adopt measures that allow deal with money search peaks caused by “extreme and uncommon events.” Finland, for example, is developing automatic boxes totally immune to interruptions and cybers.
The PCK warns that no system is “foolproof”, it is best to be prepared.
Also keep food and medicines
This recommendation is part of the continuous efforts of the European authorities to prepare citizens for any type of crisisnote or.
In March this year, the European Commission advised people to store Food, water and enough medicines for 72 hoursin the case of a crisis that disturbs public services.
“We must prepare for large -scale incidents and criseswhich affect multiple sectors, including the possibility of armed aggressionaffecting one or more Member States, ”indicated the document.
The “preparation” strategy-and in particular-was based on the recommendations of a report presented to the European Commission by the former President of Finland, Sauli Niinistö in late 2024.
It was also inspired by the example of Scandinavia, where Finland, Sweden and Denmark intensified their efforts to prepare homes for the possibility of a future crisis or conflict – While Ukraine continues to face the three -year -old Russian invasion.
The French government’s website suggests the preparation of a “72 -hour”, including six liters of water, non -perishable food (including pets) and photocopies of identification documents stored in a impermeable bag.
