5 Countries Outside the European Union That Officially Use the Euro
The euro stands as a powerful symbol of economic unity. It goes far beyond being just the common currency for European Union member states. In fact, the euro holds the highest total value of circulating banknotes and coins globally. It has even surpassed the United States dollar in this regard.
Many coins valued at one euro or more circulate outside the EU borders. The European Central Bank issues this currency. Popular banknote denominations include €5, €10, €20, €50, and €100. The €200 and €500 notes see much less use in daily transactions.
Euro coins come in values from 1 cent up to 2 euros. While 20 EU member states form the eurozone, several non-EU nations have also adopted the euro. Some countries made this move through formal agreements with the European Union. Others chose a unilateral path without any official deal.
Here is a detailed look at five such countries that use the euro despite not being EU members. This information draws from reliable sources like the World Population Review.
1. Andorra
Andorra is a small nation nestled between France and Spain. It is not a member of the European Union. However, it officially adopted the euro as its legal tender. This became possible after the country signed a formal monetary agreement with the EU in 2006.
The agreement allows Andorra to use the euro and even mint its own euro coins. Andorra joined the United Nations and the Council of Europe in 1993. Despite its tiny size, the country maintains an active role on the international stage.
It gained significant global recognition in 2004. That year, UNESCO declared the Madriu-Perafita-Claror Valley a World Heritage Site. The valley is celebrated for its historic pastoral landscape and cultural significance.
2. Monaco
Monaco is a sovereign city-state located on the French Riviera. It relies on the euro as its official currency through a special agreement with France. Monaco does not hold formal membership in the European Union.
Yet, it participates in certain EU policies. These include customs and border controls. The principality became a member of the Council of Europe in 2004. It is also part of the Organisation internationale de la Francophonie.
Monaco's financial relationship with France stretches back many generations. French customs laws apply within Monaco and its adjacent waters. Today, the euro is an integral part of daily life in this glamorous city-state.
3. Montenegro
Montenegro presents one of the most interesting cases of euro adoption. The nation is not part of the European Union or the eurozone. It has no formal monetary agreement with any EU country.
Despite this, Montenegro effectively adopted the euro as its domestic currency in 2002. The country used several currencies before making this switch. These included two versions of the Montenegrin perper in the 20th century.
After gaining de facto independence, Montenegro also used Yugoslavia's dinar in parallel. Today, the country's entire financial system operates on the euro. This unique unilateral position defines its economic framework.
4. San Marino
The Republic of San Marino claims the title of the world's oldest existing republic. It switched from its lira coins to the euro on January 1, 2002. Before that date, the Sammarinese lira was pegged to the Italian lira at par.
Both currencies circulated and were accepted interchangeably. San Marino is not an EU member. However, it maintains very close economic ties with Italy. The euro now serves as its official currency.
San Marino mints its own euro coins. These coins have become quite popular with collectors across Europe. They represent a piece of the nation's rich history and modern economic integration.
5. Vatican City
Vatican City started using the euro in 2002. This made it one of the easiest adoptions of a foreign currency. Previously, it used the Vatican lira. This was not an independent currency but a version of the Italian lira.
The Banca d'Italia minted these coins specifically for the city-state. After integration, Vatican City began using its own euro coins. It also sells several other commemorative coins to collectors.
The city-state is landlocked within Rome. It is not a member of the European Union. Yet, the euro lies at the very heart of its financial system. This tiny sovereign entity relies completely on the common European currency.
These five nations demonstrate the euro's reach beyond the European Union. They show how economic practicality and historical ties can drive currency adoption. Each country has its own unique story and relationship with the euro.
