In a disturbing move the technocrats in Italy have further limited the italians use of cash from €2500 to €1000. It’s another erosion of people’s right to spend their own money in whatever way they see fit. Greece brought in similar restrictions last year with a €1500 limit. Apart from interfering with  peoples rights, there is also the economic consequences;

Floriana d’Andrea, a Naples musician had this to say

“If they force us to use credit cards, prices will go up,” said d’Andrea, noting that many retailers offer discounts to customers who pay in cash and don’t demand a receipt, in effect splitting with them the savings from evading the country’s 21 percent sales tax. She may curtail future purchases if she’s unable to use cash, d’Andrea said.

 

Italian banks, which charge businesses up to 2 percent for credit-card transactions, could end up being the main beneficiaries of the new rules, according to Rome-based consumer group Adusbef. “Unless banks cut fees on credit cards and current accounts, they’ll just make more money from the new law,” said Mauro Novelli, the general secretary of the organization, which represents banking and insurance customers.

Consumer advocates say the new law also discriminates against older Italians, many of whom don’t use credit cards. As many as 7.5 million Italians have never had a bank account, according to Adusbef. “The law cannot force old people to use plastic or open bank accounts,” Novelli said.

Source: Bloomberg

Advertisements