Why is it recommended to keep €100 at home in Germany? The European Central Bank has advised residents to keep between €70 and €100 in cash at home, according to a new study published this week. This was reported by AUSNEWS (Новости Германии).
Why is it recommended to keep €100 at home in Germany?
The report, entitled “Keep calm and carry cash,” examines the role of paper money in the context of the last four crises in Europe. The authors note that during any upheaval — financial, military (e.g., the war in Ukraine), or health-related, such as the Covid-19 pandemic — demand for cash has risen sharply.
“When sudden crises began, such as the 2008 financial crisis, the 2014-2015 debt crisis in Greece, the COVID-19 pandemic, or Russia’s full-scale invasion of Ukraine in 2022, people immediately started withdrawing more cash,” the study says.
Therefore, the ECB recommends keeping a supply of banknotes at home in case of disruptions to electronic payment systems. After all, most Europeans are accustomed to paying with cards or apps, but in extreme situations, cash may be the only way to pay.
Enough to cover your needs for 72 hours
The ECB explains that keeping cash at home can protect people in the event of disruptions to electronic payments. Such disruptions have occurred before, whether it be a large-scale power outage, as in Spain in April last year, a major cyberattack, or a pandemic. In such situations, cash becomes “a cheap way to protect against serious systemic problems,” the study says.
The document gives examples: the authorities in the Netherlands, Austria, and Finland advise keeping about €70-100 per person at home, or an amount sufficient to cover basic expenses for three days.
The ECB emphasizes that cash is needed not only for personal needs but also for the stability of the entire system. It is considered “an important part of national crisis preparedness.”
In addition to recommendations for citizens, the bank also addresses governments and banks: they need to be prepared for a sharp increase in demand for cash during “extreme and rare events.” For example, Finland is currently installing ATMs that are resistant to failures and cyberattacks.
Since the ECB reminds us that there are no completely “foolproof” systems, it is better to be prepared in advance.
Stock up on food and medicine
This is part of the European authorities’ plan to prepare citizens for any crisis. In March, the European Commission recommended that people keep a minimum of 72 hours’ worth of food, water, and medicine at home in case of disruptions to public services.
The document emphasizes: “We must be prepared for large-scale crises and incidents, including the possibility of armed aggression against one or more EU states.”
This “preparedness” strategy and the idea of a survival kit are based on a report presented to the European Commission at the end of 2024 by former Finnish President Sauli Niinistö.
The Scandinavian countries — Finland, Sweden, and Denmark — have set an example for Europe. They are already actively preparing their populations for possible crises and conflicts, while Ukraine is facing Russian aggression for the third year in a row.
In France, the government website directly advises people to put together a “72-hour emergency kit.” It should include six liters of water, non-perishable food (including pet food), and photocopies of documents, packed in a waterproof bag.
Great article. Thanks for the mention.