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Estonia: 2008 (but that is not very likely, C.)

Latvia: 2008 (ditto, C.)

Lithuania: no target date specified*

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Quite strange! Last info from Latvia: Pretty sure, that Lithuania will introduce Euro sooner as Latvia. Estonia will be first! Euro in Latvia no sooner than 2009.

BTW: From the same research: more than 50% of Latvians are against euro.

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BTW: From the same research: more than 50% of Latvians are against euro.

Right, and Latvia is not the only "EU-but-not-euro" country where that seems to be the case. Even Cyprus, where the national government plans to join Euroland in 2008, has a solid majority against the common currency. Well, in Slovenia - which will join in a few weeks - that is quite different.

 

As for Latvia, I just read a few days ago that it is the EU country with the highest economic growth (in terms of the gross domestic product, more than 10% in the first half of 2006) but also has a high inflation rate of about 6%. Maybe the decision to join the Exchange Rate Mechanism was a little too early; in any case it makes sense in my opinion to not follow a speedy approach with regard to any further enlargements of the euro area.

 

Christian

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As for Latvia, I just read a few days ago that it is the EU country with the highest economic growth (in terms of the gross domestic product, more than 10% in the first half of 2006) but also has a high inflation rate of about 6%.

 

Possibly there's a reason for such inflation outside fiscal politics and interest rates. Before introducing fixed rate Lats/Euro, the rate of Euro was about Ls0.64/EUR. Just before the date of fixation, Euro went incredibly high and at the moment of F-day was Ls0.702804/Euro and still remains so.

Now! I have never heard, that oficial rate would be HIGHER than markets one! Such paradox takes place in Latvia, where still you can but Euro at 0.685-0.696. It never reached official rate. IMHO that's the main reason for such an inflation.

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Before introducing fixed rate Lats/Euro, the rate of Euro was about Ls0.64/EUR. Just before the date of fixation, Euro went incredibly high and at the moment of F-day was Ls0.702804/Euro and still remains so.

Quite a difference indeed - especially when, as you wrote, that rate is to some extent a theoretical one ... Then again, that 0.702804 is just the central rate in ERM-II, and the ECB will only intervene if the upper or lower limit of the (15 percent!) fluctuation band is exceeded. So Latvia could let the lats flow between roughly 0.80 and 0.60 euro and still meet the convergence criteria with regard to ERM-II.

 

Seems that different countries have different approaches regarding the central rate. Malta, for example, observes the central rate (unilaterally) while Cyprus just wants to keep the pound within the +/-15% fluctuation band. Latvia's plan seems to be closer to the Maltese plan then ...

 

By the way, Poland now plans to meet the convergence criteria in 2009 and then have a referendum (about the introduction of the euro) in 2010. Well, if the same people who voted the Kaczynski government into power will vote about the euro, Poland will stay out for a good long time. :ninja:

 

Christian

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I though new member states HAD to join the Euro eventually only the UK & Denmark don't have to?

 

The UK may eventually join but I don't think Elizabeth II will adorn the Euro more Likely Charles/William (depending on who goes on the throne next, if it's Charles he won't be on there long & may not appear on the Euro, if it's William then he may do)

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I though new member states HAD to join the Euro eventually only the UK & Denmark don't have to?

With regard to the euro, there are several groups of countries in the European Union. The UK does not have anything to do with the euro and does, as requested, not "have" to join the currency union. The latter also applies to Denmark. (Without the exemption, these two countries would not have agreed to the Maastricht Treaty.) Denmark is a little different though: The country joined the exchange rate mechanism (ERM-II), with an even narrower fluctuation band than the 15% of the other ERM currencies. Thus the euro and the Danish krone are "tied" with a +/- 2.25 percent fudge factor.

 

All other member states will theoretically have to join the currency union one day. Among those we have countries that basically meet the convergence criteria but want to stay out (e.g. Sweden), countries that meet the criteria and will soon be in (e.g. Slovenia), and countries that currently do not meet all criteria. And if a country cannot - or does not want to - join the currency union, so what? Then it stays out. Seems to work fine for the currency union members and for the others.

 

Christian

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  • 1 month later...
Here is a map of Europe (status: as from next Monday), with ...

 

- the euro countries in yellow,

- the EU member states that will introduce the euro later (at least theoretically) in orange,

- and the other two EU countries in olive/green.

 

http://img465.imageshack.us/img465/3655/eu2007ai8.jpg

 

Christian

 

 

I am not all that clear on who is in the freetrade no customs zone like the UK is an EEC member

not a Euro member but nonetheless it will honor free banktransfers in Euro to Euro accounts in the UK without cost . Of course they still use the Pound

 

Or who issued really Euro money and honors not the agreements ( like spanish banks are sometimes quoted not honoring the costfree money transfer and still want the transfer cost money as reported in individual cases )

My bank wanted 11 euro cost for a transfer to Monaco and I do not know which of the requirement of an eurotransfer they do not fullfill

 

Last week our Belgian reporters said Slovakia will be a member from Januari 1 st on

Does that change the color of your chart for Slovakia ?

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I am not all that clear on who is in the freetrade no customs zone like the UK is an EEC member

not a Euro member but nonetheless it will honor free banktransfers in Euro to Euro accounts in the UK without cost . Of course they still use the Pound

Sure. That map is from a brochure of the European Commission which focuses on the enlargement (as from 1 January) of the EU and of Euroland. The EEC does not exist any more; the Maastricht Treaty turned it into the EC to reflect that the Community is not a merely economic one. As for standard euro-based money transfers, yes, they apply to all member states.

 

Or who issued really Euro money and honors not the agreements ( like spanish banks are sometimes quoted not honoring the costfree money transfer and still want the transfer cost money as reported in individual cases )

Well, strictly speaking the EU regulation just says that euro based standard transfers may not cost more than domestic transfers. But yes, I have heard similar stories about France and Spain. Austria, Finland and the Benelux countries seem to work fine as far as I can tell.

 

The problem with Monaco could be that the country is not in the EU, nor is it an EEA member. The standard transfer, however, applies only to the EU/EEA ...

 

Last week our Belgian reporters said Slovakia will be a member from Januari 1 st on

Does that change the color of your chart for Slovakia ?

No, the map shows the status as from 1-Jan. The reporter must have mixed up two different countries (which both are EU members): Slovenia introduces the euro on Monday; Slovakia does not.

 

Christian

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The problem with Monaco could be that the country is not in the EU, nor is it an EEA member. The standard transfer, however, applies only to the EU/EEA ...

 

Thank you for the complete answer :ninja:

 

With the Monaco coin I paid the bank 11 euro extra , but it did not pass a single custom officer on the way to Belgium which makes it strange.

The bank claimed they were not in the Euro agreement zone but they were in the free from import tax zone

At the time I read the legal text carefully and it says the money has to be a Euro transfer from country to country in Euro denomination and the receiving country must be EU country and on top of that must have signed the exchange agreement ( which the UK did sign presumably)

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Guest Aidan Work
Thank you for the complete answer :ninja:

 

With the Monaco coin I paid the bank 11 euro extra , but it did not pass a single custom officer on the way to Belgium which makes it strange.

The bank claimed they were not in the Euro agreement zone but they were in the free from import tax zone

At the time I read the legal text carefully and it says the money has to be a Euro transfer from country to country in Euro denomination and the receiving country must be EU country and on top of that must have signed the exchange agreement ( which the UK did sign presumably)

 

 

Ageka,Monaco is a member of the Euro-Zone by default,as is San Marino,the Vatican City,& Andorra.Can you please post pictures of your Monegasque Euro coin?

 

Christian,you are right that Andorra could be granted permission to issue its own Euro coins.There is also Kosovo & Montenegro as well.Both of these countries have chosen to use the Euro as their legal tender currency.They could also issue their own Euro coins as well,given the fact that they replaced the worthless & unstable Yugoslavian Dinar with the Deutsche Mark to tie their economies into the European system.

 

Aidan.

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Ageka,Monaco is a member of the Euro-Zone by default,as is San Marino,the Vatican City,& Andorra.Can you please post pictures of your Monegasque Euro coin?

 

 

So I guess by default is not good enough for the bank asking 11 euro cost for the banktransfer

 

You misunderstood me Aidan

I bought a French coin in Monaco and paid it in euro

It is not a Monegasque coin and not a euro coin

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I bought a French coin in Monaco and paid it in euro

... and if the bank account of the seller is with a bank in Monaco, your bank may well charge you through the nose :ninja: as Monaco is not an EU member state. To qualify as a euro standard transfer, a payment has to be in euro (max €50,000 now) to an account in the EU*, it must be a SHARE payment (not BEN, not OUR), and the account number (IBAN) and bank code (BIC) have to be provided.

 

http://eur-lex.europa.eu/smartapi/cgi/sga_...;model=guichett

 

* Actually the EEA (European Economic Area) countries that are not EU member states - Iceland, Liechtenstein, Norway - apply this regulation as well. But not Monaco, I'm afraid ...

 

Christian

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Monaco is a member of the Euro-Zone by default,as is San Marino,the Vatican City,& Andorra.

Right, Monaco, San Marino, and the Vatican are euro countries since they have monetary agreements with the European Union (that superseded their previous agreements with France and Italy respectively). Andorra is not part of the currency union but simply uses the euro. They have collector coins (diners, centims) but those do not circulate.

 

There is also Kosovo & Montenegro as well.Both of these countries have chosen to use the Euro as their legal tender currency.They could also issue their own Euro coins as well

Well, Kosovo is not quite an independent country, but that is a different story. With regard to the euro, yes, Montenegro uses it as its currency. But Montenegro (and Kosovo) cannot issue euro coins.

 

Christian

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Montenegro adopted the Deutsche Mark as part of their monetary reform in 1999 and after the DM demise, the Euro became legal tender.

True, they used the DM (which at that time was already a "sub-unit" of the euro, except for the cash :ninja: ) and then the euro note and coins. However, having the currency of a different country as one's legal tender and being in a currency union are two quite different things. And currently neither Andorra nor Montenegro can issue any euro coins.

 

Andorra is in negotiations with the EU about a monetary agreement that would give the country a similar status as San Marino for example. But this has not exactly been a top priority for either side, so don't expect "Andorran euros" any time soon ...

 

Christian

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True, they used the DM (which at that time was already a "sub-unit" of the euro, except for the cash :ninja: ) and then the euro note and coins. However, having the currency of a different country as one's legal tender and being in a currency union are two quite different things. And currently neither Andorra nor Montenegro can issue any euro coins.

 

Andorra is in negotiations with the EU about a monetary agreement that would give the country a similar status as San Marino for example. But this has not exactly been a top priority for either side, so don't expect "Andorran euros" any time soon ...

 

Christian

 

 

That's correct. We can't forget that the peseta and french franc were legal tender in the principality before the euro came into being.

I think the euro as the currency in those countries was the way to go since they were using some of the euro's sub-units as legal tender before the euro became a "physical" currency..

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Transferring money to France is not so much a problem of the Banks but a problem of the French who still use personal cheques and ask for them on ebay

( Cheques are no longer used in Belgium because there is no longer any bankinsurance and so they are worthless if the account is not provided with the necessary funds )

 

Time and again I have to explain to French people to send me their RIB ( Their Bank identity has their BIC and IBAN numbers )

Last week I just gave up and paid paypall because the guy preferred this or a cheque :ninja:

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  • 1 month later...
Euro Countries w/Coin Status

The two new member states currently aim at 2011/2012 (Bulgaria) and 2014 (Romania) as far as the introduction of the euro is concerned. But all the countries that are not members of the Exchange Rate Mechanism (ERM-II) can and will not change over for at least two more years. So it makes sense to have Cyprus, Estonia, Latvia, Lithuania, Malta, and Slovakia in the green list. Slovenia should now be in the yellow list since it is a euro country.

 

The other countries - Bulgaria, Czech Rep., Hungary, Poland, Romania, Sweden - I would leave out. When/if they join remains to be seen.

 

Christian

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