Eurozone Coin Production Rises with Bulgaria's Entry

The introduction of Bulgaria into the eurozone is set to increase the overall production of euro coins across member states. With Bulgaria scheduled to adopt the euro as its official currency in January 2026, the European Central Bank (ECB) has authorized a total coin production volume exceeding 2.4 billion euros for the euro area, inclusive of Bulgaria.

Historically, the annual output of newly minted euro coins has hovered around two billion euros. For 2025, the ECB approved a volume of approximately 2.17 billion euros. Notably, previous expansions of the eurozone, such as Croatia's accession in 2023, similarly led to significant increases in coin production, with that year's volume reaching roughly 2.6 billion euros.

Of the planned coin volume for the upcoming year, about 1.9 billion euros are designated for daily transactions, while more than 511 million euros are reserved for collector coins. Germany continues to lead in euro coin production, projecting a total of 558 million euros in 2026. This figure includes 203.5 million euros in commemorative and collector coins. France and Spain follow, with expected volumes of 342 million euros and over 299 million euros, respectively.

Bulgaria, as the newest member of the eurozone, is planning an initial coin production totaling just over 164 million euros, primarily aimed at meeting everyday cash transaction needs. Each year, the ECB establishes an upper limit for euro coin issuance based on the requirements reported by member states. Within this framework, nations are permitted to mint coins according to their specific needs.

The continued relevance of cash, particularly in countries like Germany, is underscored by consumer preferences and industry analyses. According to studies by the German central bank, cash and girocard payments remain the most cost-effective methods for retail transactions. Despite ongoing developments toward a digital euro, which could be introduced as early as 2029, the ECB emphasizes that the digital currency will supplement rather than replace physical banknotes and coins. The digital euro is intended to provide a European alternative for digital payments, currently dominated by major American providers.

Production of smaller denomination coins, such as one and two-cent pieces, remains ongoing in Germany, despite their relatively high manufacturing costs. This contrasts with the United States, where the minting of the penny was discontinued in November after more than two centuries due to cost concerns. In the US, businesses are encouraged to round prices to the nearest five cents when settling cash transactions.

Similar rounding practices have already been implemented in several eurozone countries, including Finland, the Netherlands, Slovakia, Ireland, Italy, Belgium, and Estonia, where cash payments are rounded to the nearest five-cent increment. The German central bank proposed a comparable rounding system in March 2025, which would make one and two-cent coins obsolete, but the measure has yet to be enacted. For many retailers in Germany, non-rounded prices remain a competitive tool, and any decision to discontinue low-value coins would require agreement at the European level.