Judgment of the Court of 26 January 2021, Hessischer Rundfunk, C-422/19 and C-423/19

• Date: 26 January 2021
• Year: 2021

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VII. ECONOMIC AND MONETARY POLITICY

Judgment of the Court (Grand Chamber) of 26 January 2021

Joined Cases C-422/19 et C-423/19

Hessischer Rundfunk

Reference for a preliminary ruling – Economic an d monetary policy – Article 2(1) and Article 3(1)(c) TFEU –

Monetary policy – Exclusive com petence of the European Union – Article 128(1) TFEU – Protocol (No 4) on

the Statute of the European System of Central Banks and of the European C entral Bank – Article 16, first

paragraph – Concept of ‘legal tender’ – Effects – Obligation to accept euro banknotes – Regulation (EC)

No974/98 – Whether possible for Member States to impose limitations on payments by means of

banknotes and coins denominated in euro – Conditions – Regional legislation precluding the payment in

cash of a radio and television licence fee to a regional public broadcasting body

Two German citizens who were liable to pay a radio and television licence fee in the Land of Hesse

(Germany) offered to pay it to Hessischer Rundfunk (Hesse’s broadcasting body) in cash. Invoking its

regulations on the procedure for payment of radio and television licence fees, which preclude any

possibility of paying the licence fee in cash,

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Hessischer Rundfunk refused their offer and sent them

payment notices.

The two German citizens brought an action against those payment notices and the dispute reached

the Bundesverwaltungsgericht (Federal Administrative Court, Germany). That court noted that the

exclusion of the possibility of paying the radio and television licence fee by means of euro banknotes,

as provided for by Hessischer Rundfunk’s regulations on the payment procedure, infringes a higher-

ranking provision of federal law, under which euro banknotes are to be unrestricted legal tender.

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The Bundesverwaltungsgericht (Federal Administrative Court), however, queried whether that

provision of federal law is compatible with the exclusive competence of the European Union in the

area of monetary policy for the Member States whose currency is the euro, and referred the matter to

the Court of Justice for a preliminary ruling. It also asked whether the status as legal tender of

banknotes denominated in euro prohibited the pu blic authorities of Member States from ruling out

the possibility of a statutorily imposed payment obligation being discharged in cash, as is the case for

payment of the radio and television licence fee in the Land of Hesse.

The Grand Chamber of the Court of Justice rules that a Member State whose currency is the euro

may, in the context of the organisation of its public administration, adopt a measure obliging that

administration to accept payment in cash or introduce, for a reason of public interest and under

certain conditions, a derogation from that obligation.

Findings of the Court

First, the Court of Justice interprets the concept of ‘monetary policy’ in the area in which the European

Union has exclusive competence for the Member States whose currency is the euro.

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The Court begins by stating that that concept is not limited to its operational implementation but also

entails a regulatory dime nsion intended to guarantee the status of the euro as the single currency.

Next, it notes that the attribution of the status of ‘legal tender’ only to euro banknotes issued by the

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Paragraph 10(2) of the Satzung des Hessischen Rundfunks über das Verfahren zur Leistung der Rundfunkbeiträge (Regulations of Hessisch er

Rundfunk on the procedure for payment of radio and television licence fees) of 5 December 2012.

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Second sentence of Paragraph 14(1) of the Gesetz über die Deutsche Bun desbank (Law on the German central bank), in the version

published on 22 October 1992 (BGBl. 1992 I, p. 1782), as amended by the Law of 4 July 2013 (BGBl. 2013 I, p. 1981).

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Under Article 3(1)(c) TFEU, given that, according to Article 2(1) TF EU, only the European Union may legislate and adopt legally bindin g acts in

that area.