The euro is the official currency of the euro area and it is also used widely in global currency markets. In addition, the euro is also used for various reasons as an official or de facto currency by a number of third countries and regions outside the European Union.
Certain parts of the euro area are part of the European Union even though they are not on the European continent, such as the French overseas departments of Guadeloupe, French Guyana, and Martinique in the Caribbean, and Réunion in the Indian Ocean. The Portuguese islands of Madeira and the Azores, and the Spanish Canary Islands, all in the Atlantic Ocean, are other examples.
As part of the euro area, these regions use the euro normally. However, the euro can also be found in other countries and regions which are neither part of the European Union nor the euro area.
Who else uses the euro?
Three of these have adopted the euro as their national currency: the Principality of Monaco, the Republic of San Marino, and the Vatican City State.
Previously, Monaco used the French franc while San Marino and the Vatican used the Italian lira. They were allowed by France and Italy, respectively, to issue their own coins in those currencies. They now and use the euro and have monetary agreements with the EU under which they can also produce limited quantities of euro coins with their own design on the national sides, but cannot issue euro banknotes.
The agreements, signed before the introduction of euro banknotes and coins in 2002, have been or are being renegotiated in order to correct some shortcomings in their implementation, and possibly increase the maximum volume of coins these countries are entitled to issue. The new agreement with the Vatican entered into force on 1 January 2010, while negotiations with San Marino are still ongoing. Discussions with Monaco should be launched in 2010.
Certain French overseas territories, which are not part of the European Union, use the euro as their official currency through agreements with the EU. These are the Saint-Pierre-et-Miquelon islands close to the eastern coast of Canada, and the island of Mayotte in the Indian Ocean. These territories do not issue their own coins.
Finally, some countries and territories use the euro as a de facto currency, meaning it has no legal status but is commonly used.
Andorra, an independent principality on the French-Spanish border with no former official currency, now uses the euro in this way, as it has replaced the Spanish peseta and the French franc previously in circulation. Andorra may not issue its own euro coins and banknotes though, as the negotiations on the monetary agreement with the EU have not been finalised yet.
Kosovo and Montenegro in the Balkans also use the euro as a domestic currency without any agreements with the EU, following the tradition of the German mark which had previously been the de facto currency in these areas.
Legislation
Monaco
- 1999/96/EC: Council Decision of 31 December 1998 on an agreement with Monaco
- Monetary Agreement between the Government of the French Republic, on behalf of the European Community, and the Government of His Serene Highness the Prince of Monaco
San Marino
- 1999/97/EC: Council Decision of 31 December 1998 on an agreement with San Marino
- Monetary Agreement between the Italian Republic, on behalf of the European Community, and the Republic of San Marino
Vatican City
- Monetary agreement between the European Union and the Vatican City State (in force since 1 January 2010 - to be published in the Official Journal of the European Union)
- 1999/98/EC: Council Decision of 31 December 1998 on an agreement with the Vatican City
- Monetary Agreement between the Italian Republic, on behalf of the European Community, and the Vatican City State and, on its behalf, the Holy See
Saint-Pierre-et-Miquelon and Mayotte
Andorra
