Monday

21st May 2018

EU to question Montenegro's use of euro

As Montenegro prepares to sign a pact on closer links with the EU, the bloc's finance ministers meeting today (8 October) are set to warn that the country's use of the euro as its national currency is not in line with EU rules.

"Unilateral 'euroisation' is not compatible with the treaty, which foresees the eventual adoption of the euro as the endpoint of a structured convergence process within a multilateral framework," says a draft statement to be adopted on Tuesday (9 October), according to the Financial Times.

Thank you for reading EUobserver!

Subscribe now for a 30 day free trial.

  1. €150 per year
  2. or €15 per month
  3. Cancel anytime

EUobserver is an independent, not-for-profit news organization that publishes daily news reports, analysis, and investigations from Brussels and the EU member states. We are an indispensable news source for anyone who wants to know what is going on in the EU.

We are mainly funded by advertising and subscription revenues. As advertising revenues are falling fast, we depend on subscription revenues to support our journalism.

For group, corporate or student subscriptions, please contact us. See also our full Terms of Use.

If you already have an account click here to login.

  • Podgorica is due to sign a key EU agreement on 15 October (Photo: European Commission)

Montenegro, the ex-Yugoslav country of over 620,000 inhabitants adopted the euro in 2002, switching from the German mark that it had been using since 2000.

By contrast, Serbia uses the Dinar. The two states were part of a federation until June 2006 when Montenegro declared independence and set off on a separate path to EU membership.

Podgorica is set to move a big step further on 15 October when it signs a stabilisation and association agreement with the EU, considered the waiting room for membership of the 27-strong union.

But it is precisely as a result of this move that the issue of the euro is coming under the spotlight as the adoption of the single currency is part of a complex process with specific procedures.

It has to be approved by political leaders as well as key EU institutions, such as the European Central Bank. Formal approval can only be granted once the country meets a set of economic and institutional criteria.

But the Frankfurt-based bank did not previously object to the use of the euro in Montenegro and diplomats suggest the EU would hardly take the bizarre step of asking Podgorica to drop the currency first and re-join it later, the Financial Times reports.

Instead, the statement is considered as a way to stress the formal legal and economic preconditions of eurozone membership, according to the UK paper.

Apart from Montenegro, the euro is also used in the south-Serbian province of Kosovo which is trying to become independent.

'Connectivity' trumps enlargement at Balkans summit

At the first summit in 15 years with Western Balkan leaders, EU chiefs made it clear that enlargement is not at hand - but offered economic incentives to keep the region close to the bloc.

Analysis

Beyond macho: Turkish-EU ties

Turkey has belittled the EU in a week of macho posturing, but strategic relations go deeper than the rhetoric.

EU tells Moldova it is still corrupt

In an annual progress report, European Commission says "independence of justice, law enforcement as well as national anti-corruption authorities need substantial improvement".

EU divided over Western Balkan enlargement

After the European Commission presented its Western Balkans strategy last week, with a view of possibly integrating the region by 2025, some EU ministers were less enthusiastic after their first discussion of the new policy.

Opinion

Appeasement will not work with Erdogan

As EU leaders Donald Tusk and Jean-Claude Juncker meet president Recep Tayyip Erdogan in Bulgaria, their reluctance to use their diminishing leverage with Ankara means his dismantling of Turkey's democracy only speeds up.

News in Brief

  1. Trump warns Nato allies' low budgets will be 'dealt with'
  2. Only Estonia, Greece and UK hit Nato spending target
  3. EU to start process to counter US Iran sanctions
  4. Macedonia PM sees 'possible solutions' in Greek name row
  5. EU takes six countries to court over air pollution
  6. New Catalan leader sworn in without reference to Spain
  7. Merkel and Putin revive dialogue in troubled times
  8. European companies putting Iran business on hold

Stakeholders' Highlights

  1. Nordic Council of MinistersOECD Report: Gender Equality Boosts GDP Growth in Nordic Region
  2. Centre Maurits Coppieters“Peace and reconciliation is a process that takes decades” Dr. Anthony Soares on #Brexit and Northern Ireland
  3. Mission of China to the EUMEPs Positive on China’s New Measures of Opening Up
  4. Macedonian Human Rights MovementOld White Men are Destroying Macedonia by Romanticizing Greece
  5. Counter BalanceControversial EIB-Backed Project Under Fire at European Parliament
  6. Nordic Council of MinistersIncome Inequality Increasing in Nordic Countries
  7. European Jewish CongressEU Leaders to Cease Contact with Mahmoud Abbas Until He Apologizes for Antisemitic Comments
  8. International Partnership for Human RightsAnnual Report celebrates organization’s tenth anniversary
  9. Nordic Council of MinistersNordic Cooperation Needed on Green Exports and Funding
  10. Mission of China to the EUPremier Li Confirms China Will Continue to Open Up
  11. European Jewish CongressCalls on Brussels University to Revoke Decision to Honour Ken Loach
  12. Sustainable Energy Week 2018"Lead the Clean Energy Transition"- Register and Join Us in Brussels from 5 to 7 May

Latest News

  1. Athens mayor wants direct access to EU migration fund
  2. Nordics could be first carbon-negative region in world
  3. Zuckerberg and Trump top the EU's agenda This WEEK
  4. Integration of Syrian refugees in Europe needs scrutiny
  5. Bulgarian PM: No asylum reform without stronger border
  6. Eight countries to miss EU data protection deadline
  7. Italian populists to defy EU debt rules
  8. Commission 'playing tricks' with EU budget figures