Montenegro will not abandon euro, says PM

Wow, what a relief for the Eurozone. The mighty Balkan tiger MNE will not abandon the Euro. The Euro is safe now ;-)

I’m sure the Brussels is sleeping peacefully knowing that Montenegro will keep the Euro.

Hahaha! Due to Montenegro and Tzar Milos incredible financial strength MNE will keep the Euro as currency :-)

if the euro gets stuffed up, there is the kuna that they can fall back on

Montenegro is NOT part of the Eurozone and has no legal right to use Euro as national currency.
They will be asked to abandon Euro for joining the EU and will be able to join Eurozone as soon as they will join the convergency criterias.
Which means .......

Danilo is wrong for two reasons:
1) ERM is no longer valid for several years already and was replaced by convergence criteria. They are based on Article 121(1) of the European Community Treaty.
2) There's NO way to get around, specially not at the moment when the Euro, the Euro-zone and the European Union is struggling to survive.

Anyway, it's not a good idea to join this club but a better idea to stay master of your monetary politics, encouraging growth, competitiveness and jobs by being able to devaluation or evaluation of your national currency.

if the euro gets stuffed up, there is the kuna that they can fall back on
(jb, 29 November 2011 14:53) You forgot the wild west Balkan Serb dinar you can be a billionaire overnight in dinars at a drop of a hat. Also the sanctioned by government pyramid banking practises not to long ago I wonder who's cute faces and fat asses looking up were on top of the pyramid.

There are binding criterias about becoming member of the Eurozone which are called convergency criterias. NO EU country outside the Eurozone uses the Euro as national currency and there will be NO exception made for Montenegro !
Montenegro is free to use whatever currency they like, as long as they don't wish to join the club. If they do, which seems to be the case, they have to conform to the rules.
Eu has already asked them to do so in the past !

(Joachim, 29 November 2011 19:09)

Joachim, there are no legal or illegal rights about using Euro. Each country can decide to use whatever currency they want. It is not uncommon that some countries decide to use stronger currencies. They benefit from the stability of the stronger currency but cannot print it. This means that they cannot exert direct control on the amount of currency in circulation, so it is a double edged sword really, their monetary policies depend on another country. Kosovo is in the same situation and has the same worries regarding the EURO. Ecuador and some other Latin American countries use or used the dollar as their national currency as well, if I am not mistaken. Serbia in the 90's was in a similar situation for a short period of time, when the only good currency in circulation was the German Mark. The alternative, having your own currency, is good in general but probably not very convenient at this point. It would require setting up the proper infrastructure, changing a lot of stuff around, computer programs and what not, and it would be good only until Montenegro joins the Eurozone, say for 10, 15 or 20 years or so.

Joachim is right. The EU hasn't been happy about MNE's use of the Euro since the beginning.

They can use it all they want, but if they actually want to join the EU, they've got to go through the ERM (exchange rate mechanism).

It probably won't be a big deal, however. They've been using it for so long, they'll work something out.

if the euro gets stuffed up, there is the kuna that they can fall back on
(jb, 29 November 2011 14:53) You forgot the wild west Balkan Serb dinar you can be a billionaire overnight in dinars at a drop of a hat. Also the sanctioned by government pyramid banking practises not to long ago I wonder who's cute faces and fat asses looking up were on top of the pyramid.

(Joachim, 29 November 2011 19:09)

Joachim, there are no legal or illegal rights about using Euro. Each country can decide to use whatever currency they want. It is not uncommon that some countries decide to use stronger currencies. They benefit from the stability of the stronger currency but cannot print it. This means that they cannot exert direct control on the amount of currency in circulation, so it is a double edged sword really, their monetary policies depend on another country. Kosovo is in the same situation and has the same worries regarding the EURO. Ecuador and some other Latin American countries use or used the dollar as their national currency as well, if I am not mistaken. Serbia in the 90's was in a similar situation for a short period of time, when the only good currency in circulation was the German Mark. The alternative, having your own currency, is good in general but probably not very convenient at this point. It would require setting up the proper infrastructure, changing a lot of stuff around, computer programs and what not, and it would be good only until Montenegro joins the Eurozone, say for 10, 15 or 20 years or so.

Joachim is right. The EU hasn't been happy about MNE's use of the Euro since the beginning.

They can use it all they want, but if they actually want to join the EU, they've got to go through the ERM (exchange rate mechanism).

It probably won't be a big deal, however. They've been using it for so long, they'll work something out.

Wow, what a relief for the Eurozone. The mighty Balkan tiger MNE will not abandon the Euro. The Euro is safe now ;-)

if the euro gets stuffed up, there is the kuna that they can fall back on

I’m sure the Brussels is sleeping peacefully knowing that Montenegro will keep the Euro.

Hahaha! Due to Montenegro and Tzar Milos incredible financial strength MNE will keep the Euro as currency :-)

Montenegro is NOT part of the Eurozone and has no legal right to use Euro as national currency.
They will be asked to abandon Euro for joining the EU and will be able to join Eurozone as soon as they will join the convergency criterias.
Which means .......

There are binding criterias about becoming member of the Eurozone which are called convergency criterias. NO EU country outside the Eurozone uses the Euro as national currency and there will be NO exception made for Montenegro !
Montenegro is free to use whatever currency they like, as long as they don't wish to join the club. If they do, which seems to be the case, they have to conform to the rules.
Eu has already asked them to do so in the past !

Danilo is wrong for two reasons:
1) ERM is no longer valid for several years already and was replaced by convergence criteria. They are based on Article 121(1) of the European Community Treaty.
2) There's NO way to get around, specially not at the moment when the Euro, the Euro-zone and the European Union is struggling to survive.

Anyway, it's not a good idea to join this club but a better idea to stay master of your monetary politics, encouraging growth, competitiveness and jobs by being able to devaluation or evaluation of your national currency.