Euro

:For other uses, see {{PAGENAME}} (disambiguation) or EUR (disambiguation).

Participation in the economic and monetary union

:Main article: Eurozone

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Countries using the euro

At present the member states officially using the euro are Austria, Belgium, Finland, France (except Pacific territories using the CFP franc), Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal and Spain. Overseas territories of some Eurozone countries, such as French Guiana, Réunion, Saint-Pierre et Miquelon, and Martinique, also use the euro. These countries together are frequently referred to as the "Eurozone", "Euroland" or more rarely as "Eurogroup".

Related Topics:
Austria - Belgium - Finland - France - CFP franc - Germany - Greece - Ireland - Italy - Luxembourg - Netherlands - Portugal - Spain - French Guiana - Réunion - Saint-Pierre et Miquelon - Martinique - Eurozone

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Monaco, San Marino, and Vatican City previously used currencies that were replaced by the euro, and now mint their own euro coins by virtue of agreements concluded with EU member states (Italy in the case of San Marino and Vatican City, and France in the case of Monaco), on behalf of the European Community.

Related Topics:
Monaco - San Marino - Vatican City - Italy - France - European Community

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Andorra, Montenegro, and Kosovo also used currencies that were replaced by the euro (the French franc and Spanish peseta in the case of Andorra, and the German mark in the case of Montenegro and Kosovo). They have now adopted the euro as their de facto currencies, without having entered into any legal arrangements with the EU that explicitly permit them to do so. In October 2004, Andorra began negotiating a monetary agreement with the European Union that would allow the country to issue euro coins as Monaco, San Marino, and the Vatican City do.

Related Topics:
Andorra - Montenegro - Kosovo - Franc - Peseta - Mark - 2004

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Many of the foreign currencies that were pegged to European currencies are now pegged to the euro. For example, the Cape Verdean escudo used to be pegged to the Portuguese escudo, but is now pegged to the euro. Bosnia-Herzogovina uses a convertible mark which was pegged to the Deutsche mark but is now pegged to the euro. Similarly the CFP franc, CFA franc and Comorian franc, all once pegged to the French franc, are now pegged to the euro. The euro is widely accepted in Cape Verde already on an informal basis, and in November 2004, during a meeting in Portugal, the prime minister of Cape Verde considered formally adopting the euro as his country's currency.

Related Topics:
Pegged to the euro - Cape Verdean escudo - CFP franc - CFA franc - Comorian franc - Franc - Cape Verde

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Since December 2002, North Korea has switched from the dollar as its official currency for all foreign transactions to the euro. The euro has since then also replaced the dollar in large parts of the blackmarket and in shops where the dollar was used earlier.

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In total, the euro is the official currency in 31 states and territories. Also, 27 states and territories that have a national currency are also pegged to the euro including fourteen West African countries including Senegal and Cameroon, three French overseas territories including French Polynesia and New Caledonia, two African island countries where the currency was formerly pegged to the Portuguese or French currency, three former Communist countries where the currency was pegged to the German mark including Macedonia. Morocco, Cyprus, Denmark, Estonia and Hungary are also pegged to the euro.

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EU members outside the Eurozone

The ten newest European Union members are expected to eventually use the euro, as eventual adoption of the euro was part of their accession agreements. Cyprus, Estonia, Latvia, Lithuania, Malta and Slovenia have already joined Denmark in the European Exchange Rate Mechanism, ERM II. The dates these ten states hope to complete the third stage of the EMU vary: 1 January, 2007 for Estonia, Slovenia and Lithuania 1(since they are already part of ERM II); 2007 for Cyprus; 2008 for Latvia, Malta and Slovakia; 2009 for the Czech Republic and Poland; and finally 2010 for Hungary. Estonia finalised the design for the country's coins' reverse side in late 2004. 1 2

Related Topics:
Cyprus - Estonia - Latvia - Lithuania - Malta - Slovenia - Denmark - European Exchange Rate Mechanism - EMU - 1 January - 2007 - ERM II - 2008 - Slovakia - 2009 - Czech Republic - Poland - 2010 - Hungary

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The United Kingdom and Sweden have no plans at present to adopt the euro—however Sweden (unlike the UK and Denmark) does not have a formal opt-out from the monetary union (the third stage of EMU) and therefore must (in theory at least) convert to the euro at some point. Notwithstanding this, on 14 September 2003, a Swedish referendum was held on the euro, the result of which was a rejection of the common currency. The Swedish government has argued that such a line of action is possible since one of the requirements for Eurozone membership is a prior two-year membership of the ERM II. By simply choosing to stay outside the exchange rate mechanism, the Swedish government is provided a formal loophole avoiding the theoretical requirement of adopting the euro. Sweden's major parties continue to believe that it would be in the national interest to join.

Related Topics:
United Kingdom - Sweden - 14 September - 2003 - Referendum

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UK eurosceptics believe that the single currency is merely a stepping stone to the formation of a unified European superstate, and that removing Britain's ability to set its own interest rates will have detrimental effects on its economy. The contrary view is that, since intra-European exports make up 60% of the UK's total, it eases the Single Market by removing currency risk. An interesting parallel can be seen in the 19th century discussions concerning the possibility of the UK joining the Latin Monetary Union http://www.oup.co.uk/pdf/0-19-924366-2.pdf. The UK government has set five economic tests that must be passed before it can recommend that the UK join the euro. It assessed these tests in October 1997 and June 2003, and decided on both occasions that they had not all been passed. All three main political parties in the UK have promised to hold a referendum before joining the euro, and opinion polls consistently report a majority of the public to be opposed to joining the euro.

Related Topics:
Eurosceptics - 19th century - Latin Monetary Union - Five economic tests

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Denmark negotiated a number of opt-out clauses from the Maastricht treaty after it had been rejected in a first referendum (namely, Denmark attained an opt-out from joint defence, common currency, judicial cooperation, and European citizenship). The modified treaty was then accepted in another referendum one year after the first one. In 2000, another referendum was held in Denmark regarding the euro; once more, the population decided to stay outside the eurozone for now. However, Danish politicians have suggested that debate on abolishing the four opt-out clauses may be re-opened in late 2005 or early 2006. In addition, Denmark has pegged its krone to the euro (€1 = DKr7.460,38 ± 2.25%), something which Sweden has not done.

Related Topics:
Denmark - Maastricht treaty - 2000 - Eurozone - Krone

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Bulgaria and Romania

Although Bulgaria is not a member state yet (member as of 1 January 2007), the Bulgarian National Bank (BNB) and the Bulgarian government have agreed on the introduction of the euro in mid-2009, when the Bulgarian National Bank is expected to become part of the EMU and will receive the right to issue Bulgarian euro coins. The early accession to the EMU is due to the extremely tight monetary policy currently in use, which is the result of Bulgaria's agreement with the Monetary Board. In 1999 the Bulgarian currency was re-denominated (1 new lev = 1000 old levs) and the value of the lev was fixed to one German mark, therefore its value has since been fixed in relation to the euro. Even at this point of time Bulgaria has fulfilled the great majority of the EMU membership criteria.

Related Topics:
Bulgaria - 1 January - 2007 - Bulgarian National Bank - Lev

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As for Romania (member as of 1 January 2007), it is likely to join the Eurozone in the 2010–12 period. However, there is a clear strategy of the Romanian government at this point to introduce the euro.

Related Topics:
Romania - 1 January - 2007

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