Montenegro and the euro
Encyclopedia
Montenegro
has no currency of its own. Prior to the introduction of the euro
in 2002, the Deutsche Mark was the de facto currency in all private and banking transactions. When the euro was introduced and the Deutsche Mark yielded, Montenegro began using the euro as well.
The European Commission and the European Central Bank have voiced their discontent over Montenegro's unilateral use of the euro on several occasions, saying that the adherence to strict convergence criteria
(such as spending at least 2 years in the ERMII system) are not negotiable, but have not intervened to stop the use of euro on Montenegro in 2002.
Unlike official members of the Eurozone
, Montenegro does not mint
coins with a distinctive national design.
Officials from the Central Bank of Montenegro have indicated on several occasions that the European institutions do expect them to strictly follow ERM rules, particularly because of their EU accession process.
On 17th December 2010 Montenegro was granted candidate status to join the European Union
. The issue is expected to be resolved through the negotiations process.
Montenegro
Montenegro Montenegrin: Crna Gora Црна Гора , meaning "Black Mountain") is a country located in Southeastern Europe. It has a coast on the Adriatic Sea to the south-west and is bordered by Croatia to the west, Bosnia and Herzegovina to the northwest, Serbia to the northeast and Albania to the...
has no currency of its own. Prior to the introduction of the euro
Euro
The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...
in 2002, the Deutsche Mark was the de facto currency in all private and banking transactions. When the euro was introduced and the Deutsche Mark yielded, Montenegro began using the euro as well.
The European Commission and the European Central Bank have voiced their discontent over Montenegro's unilateral use of the euro on several occasions, saying that the adherence to strict convergence criteria
Convergence criteria
The euro convergence criteria are the criteria for European Union member states to enter the third stage of European Economic and Monetary Union and adopt the euro as their currency...
(such as spending at least 2 years in the ERMII system) are not negotiable, but have not intervened to stop the use of euro on Montenegro in 2002.
Unlike official members of the Eurozone
Eurozone
The eurozone , officially called the euro area, is an economic and monetary union of seventeen European Union member states that have adopted the euro as their common currency and sole legal tender...
, Montenegro does not mint
Mint (coin)
A mint is an industrial facility which manufactures coins for currency.The history of mints correlates closely with the history of coins. One difference is that the history of the mint is usually closely tied to the political situation of an era...
coins with a distinctive national design.
Officials from the Central Bank of Montenegro have indicated on several occasions that the European institutions do expect them to strictly follow ERM rules, particularly because of their EU accession process.
On 17th December 2010 Montenegro was granted candidate status to join the European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
. The issue is expected to be resolved through the negotiations process.