Spain to ban cash transactions of more than 2,500 euros
14 April 2012 @ 12:22
The Spanish government has announced plans to ban all cash transactions of more than 2,500 euros, in an effort to clamp down on the rampant black economy and tax evasion in Spain. This follows similar moves by the Italian government, which recently announced plans to ban cash transactions above 1,000 euros. Interestingly, the 2,500 limit only applies to Spanish residents. For those that are non-resident, the limit rises to 15,000 euros. Those found guilty of breaking the law will be receive a fine totally 25% of the transaction value.
I can see why the government would want to do this. The black economy is huge in Spain. It's quite common to see people paying for their weekly shopping with 500 euro notes. But I can't see this helping the Spanish economy in the short term. It needs people to spend money, including those with black market money...