Currencies_of_the_European_Union

Currencies of the European Union

Currencies of the European Union

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There are eight currencies of the European Union as of 2023 used officially by member states. The euro accounts for the majority of the member states with the remainder operating independent monetary policies. Those European Union states that have adopted it are known as the eurozone and share the European Central Bank (ECB). The ECB and the national central banks of all EU countries, including those who operate an independent currency, are part of the European System of Central Banks.

EU GDP by currency group[1]

  Eurozone (85.5%)
  Poland (3.8%)
  Sweden (3.4%)
  Others (7.3%)

Euro

Further information: Eurozone and Enlargement of the eurozone

The euro is the result of the European Union's project for economic and monetary union that came fully into being on 1 January 2002 and it is now the currency used by the majority of the European Union's member states, with all but Denmark (which has an opt-out in the EU treaties) bound to adopt it. It is the currency used by the institutions of the European Union and in the failed treaty on a European Constitution it was to be included with the symbols of Europe as the formal currency of the European Union. The euro is also widely used by other states outside the EU.

Except for Denmark, all current and future members of the EU are obliged to adopt the Euro as their currency, thus replacing their current ones.[2] The relationship between euro and non-euro states has been on debate both during the United Kingdom's membership (as a large opt-out state) and in light of withdrawal from the EU and how that impacts the balance of power between the countries inside and those outside the eurozone, avoiding a eurozone caucus out-voting non-euro states. Former member United Kingdom had called for the EU treaties to recognise the EU as a "multicurrency union", which sparked concerns about undermining euro adoption in remaining countries.[3] [4][5][6]

Current currencies

Map of currencies used within the EU and dates of Euro adoption
  States which used the euro from 1999 (currency entered circulation 2002)
  States which subsequently adopted the euro
  States using other currencies

The following are official and unofficial currencies used within the borders of the 27 EU Member states:

More information Currency, Region ...
Note that there are other currencies used in overseas territories of member states. Those territories however are not part of the European Union proper (legally subject to all its law) so are not listed here.

Historic currencies

Further information: History of the euro
More information Currency, State ...

See also

Notes

  1. The euro is the official currency but the Swiss franc is more widely used and accepted. Salaries are paid in Swiss francs.
  2. The euro is the official currency but the Swiss franc is more widely used due to Büsingen am Hochrhein being an exclave surrounded by Switzerland.
  3. EU law is suspended in Northern Cyprus, and the Turkish Cypriot government which uses the Turkish lira are not recognised as the legitimate government of the region. Nevertheless, the euro does circulate widely.
  4. Interchangeable with Luxembourgian franc (BLEU).
  5. Replaced alongside French franc with euro
  6. Linked to Monegasque franc,[lower-alpha 5] both valid in France, Andorra and Monaco.
  7. Was interchangeable with pound sterling until 1979.
  8. Replaced alongside Italian lira with euro
  9. Linked to Sammarinese & Vatican lira,[lower-alpha 8] all valid in Italy, San Marino and the Vatican City.
  10. Interchangeable with Belgian franc (BLEU).
  11. Was interchangeable with Irish pound until 1979.
  12. Accounting currency alongside national currencies until the euro introduction.

References

  1. [1]
    "Gross domestic product at market prices". Eurostat. Retrieved 8 August 2020.
  2. [2]
    The euro, European Commission
  3. [3]
    The Eurozone seeks a post-Brexit balance, European Data Journalism Network 15 December 2017
  4. [4]
    UK call for ‘multicurrency’ EU triggers ECB alarm, Financial Times 4 December 2015
  5. [5]
    The Great British Euro Conundrum, Handelsblatt 20 June 2016
  6. [6]
    What a fair relationship between ‘euro ins’ and ‘euro outs’ could look like, London School of Economics 26 January 2016
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