Search results
Several European microstates outside the EU have adopted the euro as their currency. For EU sanctioning of this adoption, a monetary agreement must be concluded.
However, the European microstates of Andorra, Monaco, San Marino and the Vatican City, which are not members of the EU, have signed monetary agreements with the EU which allow them officially to adopt the euro and issue their own variant of euro coins.
used currency boards, and others have gone for fixed exchange rates. This paper analyzes what determines this decision. In what follows, Section II defines and discusses “microstates.” Section III discusses the disadvantages of being a microstate—higher costs and risk—and the advantages—a government more responsive to local preferences.
Changing a whole economy from one currency to another is a complex process that requires careful preparations at many levels of society. One decision to be made is how the euro will be introduced: each EU country must choose among three possible scenarios the one which best meets its needs.
Aug 16, 2012 · I explain why microstates at independence have chosen either dollarization, currency board arrangements, or fixed exchange rates rather than more flexible forms of exchange rate systems.
- Patrick Imam
- 2012
Andorra, Monaco, San Marino, and the Vatican City use the euro through monetary agreements with the EU, and have been granted the right to issue a limited number of euro coins. They were allowed to do so as they had used or been tied to the old eurozone currencies.
May 21, 2023 · Microstates and the EU: Identity, Policymaking and the Quest for an Independent Future. Curtis Large. Download PDF. May 21 2023 •. 765. views. Boris Stroujko/Shutterstock. Nestled among the borders of the European Union (EU) exist four non-member microstates: Andorra, Liechtenstein, Monaco, and San Marino.
