Eurozone

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The Eurozone (also called Euro Area, Eurosystem or Euroland) refers to the European Union member states that have adopted the euro currency union. The European Central Bank is responsible for monetary policy within the zone.

Contents

     Eurozone countries      EU states to join Eurozone on 1 January 2008      EU state aiming to join Eurozone on 1 January 2009 (Slovakia)      EU states bound by the Maastricht Treaty to ultimately join the Eurozone      EU states with a derogation on Eurozone participationStates/territories outside the EU using the euro are shown with blue hatching.
     Eurozone countries      EU states to join Eurozone on 1 January 2008      EU state aiming to join Eurozone on 1 January 2009 (Slovakia)      EU states bound by the Maastricht Treaty to ultimately join the Eurozone      EU states with a derogation on Eurozone participation
States/territories outside the EU using the euro are shown with blue hatching.

In 1998 eleven EU member-states had met the convergence criteria, and the Eurozone came into existence with the official launch of the euro on 1 January 1999. Greece qualified in 2000 and was admitted on 1 January 2001. Physical coins and banknotes were introduced on 1 January 2002. Slovenia qualified in 2006 and was admitted on 1 January 2007. Cyprus and Malta qualified in 2007 and will be admitted in 2008 bringing total Eurozone membership to over 317 million people and fifteen member states:

Monaco, San Marino, and Vatican City also use the euro, although they are officially neither Eurozone members nor members of the EU. (They previously used currencies that were replaced by the euro: Vatican and San Marino had their currencies pegged to the Italian lira (Vatican and San Marinese lira) and Monaco used the Monegasque franc, which was pegged on a 1:1 basis to the French franc).

These countries use the euro by virtue of agreements[3] concluded with EU member states (Italy in the case of San Marino and Vatican City, France in the case of Monaco), on behalf of the European Community. Those arrangements have been approved by the European Commission and the European Council. In virtue of these agreements, Monaco, San Marino and the Vatican city state are currently allowed to issue a limited amount of euro coins with their own national symbols on the obverse every year. In practice, Monaco's coins are minted by France, and coins for the Vatican and San Marino are minted by Italy. Nevertheless, coins issued by the Vatican, by Monaco and by San Marino are legal tender in the Eurozone, and vice versa.

San Marino, Monaco and the Vatican currently do not issue euro banknotes, using instead the ones issued by Eurozone member states.

Andorra does not have an official currency and hence no specific euro coins. It previously used the French franc and Spanish peseta as de facto legal tender currency. There has never been a monetary arrangement with either Spain or France; however, the EU and Andorra are currently in negotiations regarding the official status of the euro in Andorra. According to Andorran officials, Andorra would have minted its own euro coins for the first time in 2006; as of January 2007, this has not yet happened, partially due to stalling over bank secrets in December 2005.[4]

Likewise, Montenegro and Kosovo, which used to have the German mark as their de facto currency, also adopted the euro without having entered into any legal arrangements with the EU explicitly permitting them to do so. Kosovo uses the euro instead of the Serbian dinar, mainly for political reasons.[citation needed]

As of 1 December 2002, North Korea has replaced the U.S. dollar with the euro as its official currency for international trading. (Its internal currency, the won, is not convertible and thus cannot be used to purchase foreign goods.) The euro also enjoys popularity domestically, especially among resident foreigners. Cuba had announced the same in 1998[5] and Syria followed North Korea in 2006.[6]

Prior to the 2003 Invasion of Iraq, President Saddam Hussein announced that he intended to price Iraqi oil in euro, rather than US dollars, since the majority of Iraqi oil trade was with the EU, India and the People's Republic of China, not with the United States. This was reverted after the invasion.

Iceland's former foreign minister Valgerður Sverrisdóttir has said in an interview on 15 January 2007 that she seriously wishes to look into whether Iceland can join the Euro without being a member of the EU. She believes it is difficult to maintain an independent currency in a small economy on the open European market.[7]

Finance ministers of EU member states that use the euro meet a day before a meeting of the Economic and Financial Affairs (Ecofin) composition of the Council of the European Union. Legally speaking this group, colloquially called the "Eurogroup", is not an official formation of the Council of the European Union. In September 2004, the Eurogroup decided it should have a semi-permanent president that is to be appointed for a period of two years. Prime Minister and Finance Minister of Luxembourg Jean-Claude Juncker was appointed first president of the Eurogroup, mandated from January 1, 2005 until December 31, 2006, and was re-appointed for a second term in September 2006.[8]

     Eurozone countries      ERM II members      EU member with currency pegged to the euro      EU members with free-floating currencies      non-EU members with free-floating currencies      non-EU member with currency pegged to the euro      States/territories outside the EU using the euro
     Eurozone countries      ERM II members      EU member with currency pegged to the euro      EU members with free-floating currencies      non-EU members with free-floating currencies      non-EU member with currency pegged to the euro      States/territories outside the EU using the euro

The twelve countries of the European Union that do not use the euro are: Denmark, Sweden, the United Kingdom, Bulgaria, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania and Slovakia.

Denmark and the United Kingdom obtained special derogations in the original Maastricht Treaty of the European Union. Both countries are not legally required to join the Eurozone unless their governments decide otherwise, either by parliamentary vote or referendum. Sweden did not, and is technically obliged to introduce the euro at some point in the future. However, the EU has made public that they have no intention to enforce this with regard to Sweden.

As of 1 January 2008, five National Central Banks (NCBs) belong to the second European Exchange Rate Mechanism (ERM II). The following table shows the dates when each member state became a full participant in the ERM II mechanism.

Date of entry Country Notes
1 January 1999 Flag of Denmark Denmark The Danish krone entered the ERM II in 1999, when the euro was created. Since then, it floats against the euro in a ±2.25% range (1 EUR = 7.46038 DKK).
28 June 2004 Flag of Estonia Estonia The Estonian kroon had been pegged to the German mark since its re-introduction on 20 June 1992, and then to the euro (1 EUR = 15.6466 EEK).
Flag of Lithuania Lithuania The Lithuanian litas was pegged to the US dollar until 2 February 2002, when it switched to a euro peg (1 EUR = 3.45280 LTL).
2 May 2005
Flag of Latvia Latvia Latvia has a currency board arrangement whose anchor switched from the SDR to the euro on 1 January 2005. The current lats fluctuation margin is ±1% against the euro (1 EUR = 0.702804 LVL).
28 November 2005 Flag of Slovakia Slovakia The Slovak koruna now floats in a ±15% range against the euro (1 EUR = 35.4424 SKK,[9] was 38.4550 SKK before 17 March 2007).[10][11]


A referendum on joining the Eurozone was held on 28 September 2000, resulting in a 53.2% vote against joining. In recent years, monthly polls[12] usually show that the majority now wants to join the Eurozone. In 2007, the Danish parliament is considering an assessment of Denmark's four exceptions from the Maastricht Treaty. On 22 November 2007, the newly re-elected Danish government declared its intention to hold a new referendum about abolishing the four exceptions, including the euro, within the next few years.[13] It remains unclear if people will vote on each exception separately, or if people will vote on all of them in a bunch.[14]

It remains unclear if Greenland and the Faroe Islands will adopt the euro should Denmark choose to do so. Both are parts of the Kingdom of Denmark, but remain outside of the EU. The Faroe Islands currently uses Danish banknotes printed with Faroese motifs - the Faroese króna - and Greenland plans to introduce a similar system. Under the current system, both will continue to use Danish coins.

Estonia has currently no target date for the changeover, although the last target date was for 1 January 2010.[15] The kroon is pegged to the euro at a fixed rate, almost all shops show prices in euro. Stamps also carry their euro face value.[16] Estonia originally aimed to adopt the euro on 1 January 2007, but this was postponed to 1 January 2008 (because Estonia did not meet the inflation criterion[17][18]) and then to 1 January 2010.[19] The date has slipped further due to the expected inflation level.[20] In September 2007, Estonian Prime Minister Andrus Ansip said Estonia was most likely to join the euro zone in 2011 or 2012. On 11 November 2007, he vowed to continue tight fiscal policies because he wanted the country to adopt the euro as soon as possible despite current high inflation. [1]

Latvia expects to adopt the euro in 2012 at the earliest,[21] but originally aimed to adopt the euro on 1 January 2008. Due to problems with inflation, Latvia was forced to delay this date.[22]

Lithuania originally set 1 January 2007 as the target date for joining the Euro, but their application was rejected by the European Commission because inflation was slightly higher than the permitted maximum.[23] In December 2006 the government approved a new convergence plan which, whilst reaffirming that the government wanted to join the Eurozone "as soon as possible", said that expected inflation increases in 2007-8 would mean the best period for joining the euro would be 2010 or after.[24] An opinion poll published in January 2007 showed that more Lithuanians opposed Euro adoption than supported it.[23]

Prime Minister Gediminas Kirkilas said on 4 December 2007 that Lithuania "will be able to join the eurozone in the time frame of 2010 to 2011." [2]


Slovakia aims to adopt the euro on 1 January 2009. The target date still holds and the proposed entry will be assessed in May 2008.[25] Although in June 2007 an analyst of one Danish bank said that "there is still a chance that Slovakia [...] will be blocked from joining [...] due to the reluctance of the Slovak government to keep spending under control,"[26] it turns out that the government deficit is even lower than expected as of autumn 2007.

The Bulgarian lev has been pegged to the euro since 1997 (between 1997 and 1999, before the euro came into existence, the lev was pegged to the German Mark) and the country has fulfilled the great majority of the EMU membership criteria. Bulgaria is committed to comply with the Maastricht criteria starting 2009 to effectively join the Eurozone in 2012, the tentative deadline set by Finance Minister Plamen Oresharski.[3]

Since joining the EU in 2004, the Czech Republic has adopted a fiscal and monetary policy that aims to align its macroeconomic conditions with the rest of the European Union. Currently, the most pressing issue is the large Czech fiscal deficit. Originally, the Czech Republic aimed for entry into the ERM II in 2008 or 2009, but the current government has officially dropped the 2010 target date, saying it will clearly not meet the economic criteria. 2013 has been suggested as the earliest changeover date.

Hungary originally planned to adopt the euro as its official currency on 1 January 2010, but that date has been abandoned because of the excessively high budget deficit. The current plan is to prepare a road map in mid-2008, without any target date.[27]

Realistically, it is difficult for Hungary to join the Eurozone in the foreseeable future until Hungarian public finances are better managed. Currently, the yearly budget deficit accounts for 6% of GDP, while public debt accounts for 69% of GDP.[28] Hungarian public debt is growing faster than Hungarian GDP.

Poland currently does not have a timetable for joining the Eurozone or ERM II. The new prime minister, Donald Tusk, declared at the new government launch in November 2007, that its intention is to join as soon as possible, but only after the budget is close to balance. This is expected to delay the ERM II entry until 2011 and euro entry until 2013 or 2014.[29] One obstacle is that the government does not have the two thirds majority in the parliament to make the necessary constitution changes for adopting the euro.

Opinion polls indicate that most Poles would like the euro to be the Polish currency.

In May 2006 the former Polish government had set its target date for euro introduction for 1 January 2012.

The Romanian government has announced plans to join the Eurozone by 2014. The plan also stipulates to adhere to the ERM-II no sooner than 2012.[30] The president of the ECB said in June 2007, that "Romania has a lot of homework to do ... over a number of years" before joining ERM II.[31]

To simplify future adjustments to ATMs at the adoption of the euro, when the Romanian new leu was adopted in 2005 (at 10,000 old lei to 1 new leu) the new banknotes were issued to the same physical proportions as euro banknotes. The old leu notes were substantially wider than the new notes.

Sweden does not have any derogation by any protocol or treaty. Nevertheless, Sweden decided in 1997 not to join the Eurozone from the beginning, and has not made any effort to fulfil the required criteria for a stable exchange rate.

The first referendum held in Sweden regarding the adoption of the Euro was on 13 November 1994. The adoption of the euro is an integral part of its Treaty of Accession to the European Union. The vote was 53% in favour for joining the EU, and thus the Eurozone. However, the Swedish government had unilaterally declared in its proposition about EU accession (11 August 1994) that the Swedish parliament would decide if and when Sweden would adopt the common currency. The parliament decided in 1997 that Sweden would stay out from the beginning but possibly join later.

The consultative national referendum on 14 September 2003, resulted in a rejection of adopting the euro, with the following figures: Yes 42.0%, No 55.9%. Consequently, the decision has been postponed, as all political parties have pledged to uphold the results for the time being. According to regular polls by the national institute of statistics, public opinion remains negative, in November 2007: 35% yes, 51% no, the rest uncertain.[32] [33] In contrast, the Eurobarometer shows that support for the euro (as such, not specifically in Sweden) has increased from 41% in 2003 to 51% in 2006.[34][35]

Former Prime Minister Göran Persson said in September 2004 that the Swedish membership application will definitely not happen before the 2010 General Election.[36][37] This view is shared by the current Reinfeldt government, that also keeps a low profile on the issue. The final introduction of the euro in Sweden will definitely not happen before 2015, and having in mind the negative poll results, it could be delayed a very long time.

According to a research made by Företagarna, 60% of Swedish corporations think that staying out of the Eurozone will be harmful for them. The leader of the Swedish organisation of corporations, Anna-Stina Nordmark-Nilsson, demanded that Sweden join the Eurozone.[38]

The decision of Sweden not to adopt the euro in the near future is generally accepted within the European Union. Sweden joined the EU in 1995, and as such did not have the opportunity to gain an opt-out in the Maastricht treaty, which was already concluded in 1992. In 1995, however, the euro did not exist, neither physically (2002) nor legally (1999), and maybe because of this the European Commission has not taken any legal action about fulfilling this Swedish commitment so far. It has been warned however, that any move similar to that of Sweden in the new states will not be tolerated, as it has been with Sweden.

See also: Five economic tests

The British government under the Prime Minister, Gordon Brown, has committed itself to a triple-approval procedure before joining the Eurozone, involving approval by the Cabinet, Parliament, and the British electorate in a referendum.

Unlike other European countries, where the euro is seen mostly as an essential building block in a more politically integrated Europe, in the United Kingdom the possible benefits of Eurozone membership are seen as principally economic, and an assessment of British membership based on five economic tests was published on 9 June 2003 by Gordon Brown, who at the time was Chancellor of the Exchequer. Though maintaining the government's positive view on the euro, the report came out against membership because four out of the five tests were not passed.

Mr. Brown stated in June 2003 that the best exchange rate for the UK to join the single currency would be around 73 pence per euro (a value which the pair had never reached)[39]. This rate has not been formalised as an official condition of entry.

Opinion polls have all shown a decisive majority of the British public to be against joining the Eurozone.[40] Some perceive loss of political and economic sovereignty; others are unconvinced of the case for change from their familiar currency. A referendum in the near future has been ruled out.

If the United Kingdom were to join the Eurozone, this might affect those jurisdictions that also use the pound sterling, or which have a currency on a par with sterling, the sterling area.

The Crown dependencies use variants of the pound sterling, the Isle of Man pound, Jersey pound, Guernsey pound, and Alderney pound. They all share the same ISO 4217 code GBP.

Some other British Overseas Territories have their currencies fixed at par with sterling: the exchange rate is fixed so that £1 in the local currency equals £1 in sterling. They are Gibraltar, the Falkland Islands and Saint Helena.

The French overseas departments and territories were faced with a similar situation when France joined the Eurozone. Those which used the French franc themselves switched to using euro. Some overseas territories used the CFP franc. Whilst these had fixed exchange rates with the French franc, they were not at par - in fact for various historical reasons they were worth considerably less, at approximately 5 centimes. Both the CFA and CFP franc remain in existence, but are now linked to the euro at fixed rates instead. These fixed rates and free convertibility of these currencies are maintained at the expense of the French Treasury. A similar situation exists with the Comorian franc, which is also now fixed against the euro.

The sterling zone territories therefore have four options:

  • Enter the Eurozone as a non-EU member, either as a distinct national variant of the euro — just as Monaco and the Vatican have done. The EU has demanded that 'monetary agreements' be entered into by non-EU members who wish to issue their own euro coinage, and has pressured Andorra into not issuing their own coins until this is resolved. Such agreements, the EU has stated, must include adherence to EU banking and finance regulation.
  • Use standard euro coins issued by the UK or other Eurozone countries. This may be perceived by some as losing an important symbol of independence.
  • Maintain their existing currency, but peg at a fixed rate with the euro. Maintaining a fixed rate against the attentions of currency speculators can be extremely expensive, as the UK found on Black Wednesday. However, small countries and dependencies are seldom if ever the object of speculation, and since the costs of defending their currencies would be insignificant to the UK, any attacks would likely fail.
  • Adopt a free-floating currency, or a currency fixed to another currency, as the Jersey government has hinted.[41]

Gibraltar is in a separate position, as it is within the EU (as part of the UK's membership). If the UK were to adopt the euro it might not be possible to implement an opt-out for Gibraltar. It is unclear whether Gibraltar would be subject to its own referendum or would be included in a UK referendum, since Gibraltar votes as a part of the UK in European parliamentary elections.

Currently, some private banks in Scotland and Northern Ireland are able to print and issue sterling banknotes of their own design. This is seen by many in these areas as an important part of their national identities.

Unless the UK Government were able to negotiate a suitable derogation from existing EU rules, it would not be possible for these private issues of banknotes to continue upon the UK joining the Eurozone. The European Central Bank only permits National Central Banks to issue banknotes. All euro banknotes are standardized across the Eurozone, without any intra-national variation.

National variation is allowed in the design of euro coins, and it is possible that the Royal Mint could continue to include the symbols of the home nations on the British designed coinage, although this would have to be included in place of the Queen's portrait.

See also: Convergence criteria

The new member states should be adopting the euro as soon as appropriate guidelines are met. For these new member states, the single currency was "part of the package" of European Union membership – unlike the UK and Denmark, "opting out" is not permitted.

The dates the remaining states (Slovenia already joined) are expected to enter the third stage of the EMU and adopt the euro vary: 1 January 2008 for Cyprus and Malta; 2009 for Slovakia; early 2010 for Bulgaria, Latvia, Lithuania and Estonia; 2013 or 2014 for Poland; 2014 for Romania. The Czech Republic was set to join on 1 January 2010, but can no longer do so due to economic conditions. A new date has not been set, but it will not probably be before 2012. Hungary has also abandoned its original target date 2010, without any new date.

On 16 May 2006 the European Commission recommended Slovenia to become a new member of the Eurozone. This occurred on 1 January 2007. On May 2007 the European Commission recommended the same for Cyprus and Malta and occurs from 1 January 2008.

Showing the ability to move towards full economic and monetary union is one requisite of "good membership". The ECB and European Commission produce reports every two years analyzing the economic and other conditions of non-Eurozone EU members, reporting on their suitability for joining the Eurozone. The first to include the 10 new members was published in October 2004.[42] The German Bundesbank, arguably the most important national bank in the ESCB, is criticizing the bloc's rush to enlarge the single currency zone.

Flag of Malta Malta Flag of Cyprus Cyprus Flag of Slovakia Slovakia Flag of Estonia Estonia Flag of Lithuania Lithuania Flag of Bulgaria Bulgaria Flag of Hungary Hungary
Target date for euro adoption 1 January 2008 1 January 2008[43] 1 January 2009 1 January 2011 1 January 2010 1 January 2012 Not set
ERM II entry 2 May 2005 2 May 2005 28 Nov 2005 28 June 2004 28 June 2004 Expected in 2009 Expected in 2011[4]
Co-ordinating institution Two Committees appointed on 13 June 2005: a Steering Committee and a Euro Changeover Committee reporting to it Joint coordination by the Minister of Finance and the Central Bank of Cyprus, created on 29 December 2004 Ministry of Finance The National Changeover Committee, created on 27 January 2005 Commission for the Coordination of the Adoption of the euro in Lithuania, created on 30 May 2005 Preparatory work is ongoing in the Ministry of Finance and Magyar Nemzeti Bank (Central Bank of Hungary)
Approved National Changeover Plan [44] First draft approved on September 1, 2005[45] Report approved by the government on 21 June 2005. NCP will be approved in November 2005 First version approved by the government on 27 September 2005 Not yet approved
Type of scenario Big-Bang[citation needed] Big-Bang[citation needed] Big-Bang[citation needed] Big-Bang[citation needed] Big-Bang[citation needed] Big-Bang with possible phase out features[citation needed]
Dual circulation period 1 month 1 month 16 days 2 weeks 15 days 1 month
Exchange of national currency Comm. banks: coins and notes for 6 months. Central bank: banknotes for 10 years and coins for 2 years. Comm. bank: banknotes until end 2009, coins until June 2009. Central bank: banknotes indefinitely, coins for 5 years Comm. banks at least 6 months, Central bank indefinitely Commercial banks 60 days, Central bank indefinitely.
Dual display of prices from the day of fixing of conversion rate until 6 months after the adoption from the first day of the second month after fixing of conversion rate until 6 months after the adoption Compulsory: from one month after fixing of conversion rate till one year after euro adoption. Voluntary: for an additional 6 months 6 months before and after €-day 60 calendar days before until 60 days after €-day
National mint No No Yes No Yes Yes Yes
National side Approved Approved Approved Approved Approved Not yet decided Not yet decided
Nr of different coin designs 3 3 3 1 3
Need for banknotes and coins 450 million coins (€147m) and 85 million banknotes (€1.7b) 150-200 million coins 118.3 million banknotes, 290 million coins
Law adaptations Umbrella law and a second and a third group of laws under consideration Umbrella law approved on 15 March 2007 Umbrella law under consideration Draft law on the adoption of the euro is prepared
Communication strategy In process Undertaken by the Central Bank's "Communication Committee for the adoption of the euro" established on 18 January 2005 Endorsed by the National Changeover Committee on 21 June 2005 Endorsed by the government on 27 September 2005
Flag of Latvia Latvia Flag of the Czech Republic Czech Republic Flag of Poland Poland Flag of Romania Romania Flag of Sweden Sweden Flag of Denmark Denmark Flag of the United Kingdom United Kingdom
Target date for euro adoption Not before 2012[46] Not before 2012[47] Not before 2013[48] 1 January 2014[49] Not under consideration Not under consideration Not under consideration
ERM II entry 2 May 2005 Not before 2011 Not before 2012 Not under consideration 1 January 1999 Not under consideration
Co-ordinating institution The Steering Committee for the preparation and coordination of the euro changeover was established on 18 July 2005 Inter-institutional working group MoF-NBP
Approved National Changeover Plan Approved on 6 July 2005 Approved on 11 April 2007[50]
Type of scenario Big-Bang with possible phase out features Big-Bang
Dual circulation period 2 weeks  ???
Exchange of national currency Central bank: indefinitely
Dual display of prices October 2007-June 2008 5 months before adoption
12 months after adoption
National mint No Yes Yes Yes
National side Approved Competition under consideration Public survey under consideration Not yet decided Not yet decided
Nr of different coin designs 4
Need for banknotes and coins 87 million banknotes and 300 million coins 230 million banknotes and 950 million coins
Law adaptations
Communication strategy

Main article: Currencies related to the euro

Cape Verde's currency was pegged to the Portuguese escudo, and now the euro. Bosnia and Herzegovina's currency, the convertible mark, was pegged to the German Mark (and now the euro). The CFA and Comorian francs, used in former French colonies, and the CFP franc, used in French Pacific Ocean territories, were pegged to the French franc, and now the euro.

Category Population Countries and territories
Official members 320 million Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Slovenia, Spain
Other European countries and territories using the euro 2.7 million Andorra, Kosovo, Montenegro, Monaco, San Marino, Vatican City
EU countries with currencies pegged to the euro (or at a narrow margin) 27 million Bulgaria, Cyprus, Denmark, Estonia, Latvia, Lithuania, Malta, Slovakia
Other European countries with currencies pegged to the euro 4 million Bosnia and Herzegovina
African countries using the CFA franc 110 million Benin, Burkina Faso, Cameroon, Central African Republic, Chad, Côte d'Ivoire, Equatorial Guinea, Gabon, Guinea-Bissau, Mali, Niger, Republic of the Congo, Sénégal, Togo
Pacific Island nations using the CFP franc 0.5 million French Polynesia, New Caledonia, Wallis and Futuna
Other countries and territories with currencies pegged to the euro 35 million Cape Verde, Comoros, Morocco
Total 496 million 44 countries and 5 areas.

HICP figures from the European Central Bank[51]:

  • mid 1999: 1%
  • mid 2000: 2%
  • mid 2001: 2.8%
  • mid 2002: 1.9%
  • mid 2003: 1.9%
  • May 2004: 2.5%
  • May 2005: 2.0%
  • May 2006: 2.5%
  • May 2007: 1.9%
  • November 2007: 3.1%

The primary means for fiscal coordination within the EU lies in the Broad Economic Policy Guidelines which are written for every member state, but with particular reference to the 13 current members of the Eurozone. These guidelines are not binding, but are intended to represent policy coordination among the EU member states, so as to take into account the linked structures of their economies.

For their mutual assurance and stability of the currency, members of the Eurozone have to respect the Stability and Growth Pact, which sets agreed limits on deficits and national debt, with associated sanctions for deviation. The Pact originally set a limit of 3% of GDP for the yearly deficit of all Eurozone member states; with fines for any state which exceeded this amount. In 2005, Portugal, Germany, and France had all exceeded this amount, but the Council of Ministers had not voted to fine those states. Subsequently, reforms were adopted to provide more flexibility and ensure that the deficit criteria took into account the economic conditions of the member states, and additional factors.

  1. ^ (except Pacific territories using CFP franc)
  2. ^ (Flag of Aruba Aruba and the Flag of the Netherlands Antilles Netherlands Antilles use Aruban florin and Antillean guilder respectively, as they are part of the Kingdom of the Netherlands, but not of the EU)
  3. ^ Agreements on monetary relations (Monaco, San Marino, the Vatican and Andorra). European Communities (2004-09-30). Retrieved on 2006-09-12.
  4. ^ Boldt, Hans H. and Sant Julià de Lòria (2006-11-15). Andorranische Euros nicht zu jedem Preis (German). Andorra-Intern. Retrieved on 2007-01-03.
  5. ^ Cuba to adopt Euro in foreign trade BBC News 08/11/98
  6. ^ US row leads Syria to snub dollar BBC News 14/02/06
  7. ^ Spongenberg, Helena. "Slovenia celebrates full entry into euro club", 2007-01-15. Retrieved on 2007-01-16. 
  8. ^ Juncker re-elected Eurogroup president, voicing optimism over economic growth
  9. ^ Radoslav Tomek and Meera Louis. "Slovakia, EU Raise Koruna's Central Rate After Appreciation", Bloomberg, 2007-03-17. Retrieved on 2007-03-17. 
  10. ^ "Slovak Koruna Included in the ERM II", National Bank of Slovakia, 2005-11-28. Retrieved on 2007-03-17. 
  11. ^ European Commission. Exchange Rate Mechanism II (ERM II). Retrieved on 2007-03-17.
  12. ^ Dagbladet Børsen Meningsmålinger apr. 07 (Danish)
  13. ^ Danes to hold referendum on relationship with EU (English). Guardian Unlimited (2007-11-22). Retrieved on 2007-11-22.
  14. ^ Dagens Nyheter, Danmark går före, AB Dagens Nyheter, 2007-11-24.
  15. ^ Report on the Adoption of the Euro (page 17). Eesti Pank (2007-06-08). Retrieved on 2007-09-19.
  16. ^ Estonian manor halls. Taagepera/361-16.08.06. Eesti Post. Retrieved on 2006-09-12.
  17. ^ Government: We must be technically prepared for the adoption of euro on 1 January 2008. Eesti Pank. Bank of Estonia (2006-04-27). Retrieved on 2006-09-12.
  18. ^ Estonia's National Changeover Plan. Eesti Pank. Bank of Estonia. Retrieved on 2006-09-12.
  19. ^ Non, nein, no: Europe turns negative on the euro, The Times, 2006-12-31, accessed on 2007-01-01
  20. ^ Estonia raises inflation forecast, further dimming euro entry. Budapest Business Journal. Retrieved on 2007-04-30.
  21. ^ http://www.neurope.eu/view_news.php?id=76779
  22. ^ Inflation will delay euro adoption in Latvia: Standard & Poor's. EUbusiness Ltd (2006-03-08). Retrieved on 2006-09-12.
  23. ^ a b Lithuanians Divided on Euro Adoption, Angus Reid Global Monitor, 2007-01-02, accessed on 2007-01-11
  24. ^ Adoption of the Euro in Lithuania, Bank of Lithuania, accessed on 2007-01-11
  25. ^ Slovak CPI sustainability key euro question - Almunia (English). Budapest Business Journal (2007-11-09). Retrieved on 2007-11-21.
  26. ^ Doubts resurface about Slovakia's euro entry – analysis (English). Budapest Business Journal (2007-06-27). Retrieved on 2007-11-21.
  27. ^ "Hungary's euro adoption hinges on economy overhaul" (English). Budapest Business Journal (2007-03-23). Retrieved on 2007-04-27.
  28. ^ https://www.cia.gov/library/publications/the-world-factbook/geos/hu.html
  29. ^ "PM promises tax and deficit cuts, "fast" preparation for euro" (English). Poland's Business Portal for Foreign Investors and Resident Business Expatriates (2007-11-23). Retrieved on 2007-12-02.
  30. ^ "Guvernul a aprobat Programul de convergenţă" (The Government of Romania approves Convergence Plan) (Romanian). Press release of the Romanian Government (2007-01-24). Retrieved on 2007-01-25.
  31. ^ "ECB: Introductory statement with Q&A", ECB, 2007-06-06. Retrieved on 2007-07-21. (English) 
  32. ^ EMU-/eurosympatier 1997-2007 (Swedish). SCB (2007-06-19). Retrieved on 2007-07-21.
  33. ^ Article om Swedish Wikipedia.
  34. ^ Eurobarometer 60.1 (Swedish). European Commission (2004-02-19). Retrieved on 2007-08-20.
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