President of the European Central Bank
The President of the European Central Bank is the head of the European Central Bank, the institution responsible for the management of the euro and monetary policy in the Eurozone of the European Union. The President heads the executive board, governing council and general council of the ECB, he represents the bank abroad, for example at the G20. The President is appointed by a qualified majority vote of the European Council, de facto by those who have adopted the euro, for an eight-year non-renewable term; however the first President, did not serve his full term Wim Duisenberg was the President of the European Monetary Institute when it became the ECB, just prior to the launch of the euro, on 1 June 1998. Duisenberg became the first President of the ECB; the French interpretation of the agreement made with the installation of Wim Duisenberg as ECB President was that Duisenberg would resign after just four years of his eight-year term, would be replaced by the Frenchman Jean-Claude Trichet. Duisenberg always denied that such an agreement was made and stated in February 2002 that he would stay in office until his 68th birthday on 9 July 2003.
In the meanwhile Jean-Claude Trichet was not cleared of legal accusations before 1 June 2002, so he was not able to begin his term after Duisenberg's first four years. On 9 July 2003 Trichet was not cleared, therefore Duisenberg remained in office until 1 November 2003. Duisenberg died on 31 July 2005. Jean-Claude Trichet served during the European sovereign debt crisis. Trichet's strengths lay in keeping consensus and visible calm in the ECB. During his tenure, Trichet has had to fend off criticism from French President Nicolas Sarkozy who demanded a more growth-orientated policy at the ECB. Germany supported Trichet in demanding the bank's independence be respected. However, he was criticised from straying from his mandate during the crisis by buying the government bonds of eurozone member states. ECB board members Axel A. Weber and Jürgen Stark resigned in protest at this policy if it helped prevent states from defaulting. IMF economist Pau Rabanal argued that Trichet "maintained a expansionary monetary policy," but "sacrificed the ECB's inflation target for the sake of greater economic growth and jobs creation, not the other way round."
While straying from his mandate, he has however still kept interest rates under control and maintained greater price stability than the Deutsche Bundesbank did before the euro. As well as defending the ECB's independence and balancing its commitment to interest rates and economic stability, Trichet fought Sarkozy for automatic sanctions in the EU fiscal reforms and against Angela Merkel against private sector involvement in bail outs so as not to scare the markets, he had however made some mistakes during the crisis, for example by: raising interest rates just after inflation topped out and just prior to the recession triggered by the Lehman Brothers collapse. In his final appearance before the European Parliament, Trichet called for more political unity, including, he asserted that the ECB's role in maintaining price stability throughout the financial crisis and the oil price rises should not be overlooked. He stated, in response to a question from a German newspaper attacking the ECB's credibility following its bond-buying.
Mario Draghi was chosen to become the next President of the ECB on 24 June 2011. He is President since 1 November 2011. Pascal Canfin, Member of the European Parliament, asserted that Draghi had been involved in swaps for European governments, namely Greece, trying to disguise their countries' economic status. Draghi responded that the deals were "undertaken before my joining Goldman Sachs I had nothing to do with" them, in the 2011 European Parliament nomination hearings. List of presidents since the establishment of the bank on 1 June 1998. Vice President Christian Noyer was only appointed for four years so that his resignation would coincide with the expected resignation of Duisenberg, his successors, starting with Lucas Papademos, are granted eight-year terms. Organisation of the ECB President's CV EU Treaties.
2 euro coin
The 2 euro coin is the highest value euro coin and has been used since the introduction of the euro in 2002. The coin is used in 22 countries with a collective population of about 341 million; the coin is made of two alloys: the outer part of copper-nickel. All coins have country-specific national sides; the coin has been used since 2002, with the present common side design dating from 2007. The €2 coin is the coin subject to legal-tender commemorative issues and hence there is a large number of national sides, including three issues of identical commemorative sides by all eurozone members; the coin dates from 2002, when euro coins and notes were introduced in the 12-member eurozone and its related territories. The common side was designed by Luc Luycx, a Belgian artist who won a Europe-wide competition to design the new coins; the designs of the one- and two-euro coins were intended to show the European Union as a whole with the then-15 countries more joined together than on the 10 to 50-cent coins.
The national sides 15 were each designed according to national competitions, though to specifications which applied to all coins such as the requirement of including twelve stars. National designs were not allowed to change until the end of 2008, unless a monarch dies or abdicates; this happened in the Vatican City, resulting in three new designs in circulation. National designs have seen some changes due to a new rule stating that national designs should include the name of the issuing country. In 2004 the commemorative coins were allowed to be minted in six states. By 2007 nearly all states had issued a commemorative issue and the first eurozone-wide commemorative was issued to celebrate the Treaty of Rome; as the EU's membership has since expanded in 2004 and 2007, with further expansions envisaged, the common face of all euro coins from the value of 10 euro cent and above were redesigned in 2007 to show a new map. This map showed Europe, not just the EU, as one continuous landmass; the redesign in 2007, rather than in 2004, was due to the fact that 2007 saw the first enlargement of the eurozone: the entry of Slovenia.
Hence, the Slovenian design was added to the designs in circulation. Cyprus and Malta joined in Slovakia in 2009 and Estonia in 2011, bringing four more designs. In 2009, the second eurozone-wide issue of a 2-euro commemorative coin was issued, celebrating ten years of the introduction of the euro. In 2012, the third eurozone-wide issue of a 2-euro commemorative coin was issued, celebrating 10 years of euro coins and notes. In 2015, the fourth eurozone-wide issue for this denomination was issued, commemorating the 30th anniversary of the Flag of Europe; the coins are composed of two alloys. The inner circle is composed of three layers and the outer ring of copper-nickel giving them a two colour appearance; the diameter of the coins is 25.75 mm, the thickness is 2.20 mm and the mass is 8.5 grams. The coins' edges are finely milled with lettering, though the exact design of the edge can vary between states with some choosing to write the issuing state's name or denomination around the edge; the coins have been used from 2002, though some are dated 1999, the year the euro was created as a currency, but not put into general circulation.
The reverse was designed by Luc Luycx and displays a map of Europe, not including Iceland and cutting off, in a semicircle, at the Bosporus, north through the middle of Ukraine and Belarus and through northern Scandinavia. Cyprus is located further west than it should be and Malta is shown disproportionally large so it appears on the map; the map has numerous indentations giving an appearance of geography rather than a flat design. Six fine lines cut across the map except where there is landmass and have a star at each end – reflecting the twelve stars on the flag of Europe. Across the map is the word EURO, a large number 2 appears to the left hand side of the coin; the designer's initials, LL, appear next to Cyprus. Luc Luycx designed the original coin, much the same except the design was only of the 15 members in their entirety and showing border and no geographic features; the map was less detailed and the lines the stars were upon cut through where there would be landmass in eastern Europe if it were shown.
The obverse side of the coin depends on the issuing country. All have to include the engravers initials and the year of issue. New designs have to include the name or initials of the issuing country; the side cannot repeat the denomination of the coin unless the issuing country uses an alphabet other than Latin. Austria engraves "2 EURO" on the reverse of its coins; the edges of the 2 euro coin vary according to the issuing state.
History of the euro
The euro came into existence on 1 January 1999, although it had been a goal of the European Union and its predecessors since the 1960s. After tough negotiations due to opposition from the United Kingdom, the Maastricht Treaty entered into force in 1993 with the goal of creating an economic and monetary union by 1999 for all EU states except the UK and Denmark; the currency was formed in 1999. It took over from the former national currencies and expanded behind the rest of the EU. In 2009, the Lisbon Treaty finalised its political authority, the Eurogroup, alongside the European Central Bank. First ideas of an economic and monetary union in Europe were raised well before establishing the European Communities. For example in the League of Nations, Gustav Stresemann asked in 1929 for a European currency against the background of an increased economic division due to a number of new nation states in Europe after World War I. At this time memories of the Latin Monetary Union involving principally France, Italy and Switzerland and which, for practical purposes, had disintegrated following the First World War, figured prominently in the minds of policy makers.
A first attempt to create an economic and monetary union between the members of the European Economic Community arrived with an initiative by the European Commission in 1969, which set out the need for "greater co-ordination of economic policies and monetary cooperation." This was followed up at a meeting of the European Council at The Hague in December 1969. The European Council tasked Pierre Werner, Prime Minister of Luxembourg, with finding a way to reduce currency exchange rate volatility, his report was published in October 1970 and recommended centralisation of the national macroeconomic policies entailing "the total and irreversible fixing of parity rates and the complete liberation of movements of capital." But he did not propose central bank. An attempt to limit the fluctuations of European currencies, using a snake in the tunnel, failed. In 1971, US President Richard Nixon removed the gold backing from the US dollar, causing a collapse in the Bretton Woods system that managed to affect all of the world's major currencies.
The widespread currency floats and devaluations set back aspirations for European monetary union. However, in March 1979 the European Monetary System was created, fixing exchange rates onto the European Currency Unit, an accounting currency, to stabilise exchange rates and counter inflation, it created the European Monetary Cooperation Fund. In February 1986, the Single European Act formalised political co-operation within the EEC, including competency in monetary policy; the European Council summit in Hannover on 14 June 1988 began to outline monetary co-operation. France and European Commission backed a monetary union with a central bank, which British Prime Minister Margaret Thatcher opposed; the Hannover European Council asked Commission President Jacques Delors to chair an ad hoc committee of central bank governors to propose a new timetable with clear and realistic steps for creating an economic and monetary union. This way of working was derived from the Spaak method. France and the UK were opposed to German reunification, attempted to influence the Soviet Union to stop it.
However, in late 1989 France extracted German commitment to the Monetary Union in return for support for German reunification. The Delors report of 1989 set out a plan to introduce the EMU in three stages and it included the creation of institutions such as the European System of Central Banks, which would become responsible for formulating and implementing monetary policy, it laid out monetary union being accomplished in three steps. Beginning the first of these steps, on 1 July 1990, exchange controls were abolished, thus capital movements were liberalised in the European Economic Community. Leaders reached agreement on currency union with the Maastricht Treaty, signed on 7 February 1992, it agreed to create a single currency, although without the participation of the United Kingdom, by January 1999. Gaining approval for the treaty was a challenge. Germany was cautious about giving up its stable currency, i.e. the German Mark, France approved the treaty by a narrow margin and Denmark refused to ratify until they got such an opt-out from monetary union as the United Kingdom, an opt-out that they maintain as of 2019.
On 16 September 1992, known in the UK as Black Wednesday, the British pound sterling was forced to withdraw from the fixed exchange rate system due to a rapid fall in the value of the pound. Delors' second stage began in 1994 with creation of the European Monetary Institute, succeeding the EMCF, under Maastricht, it was created as the forerunner to the European Central Bank. It met for the first time on 12 January under Alexandre Lamfalussy. After much disagreement, in December 1995 the name euro was adopted for the new currency, on the suggestion of then-German finance minister Theo Waigel, they agreed on the date 1 January 1999 for its launch. On 17 June 1997 the European Council decided in Amsterdam to adopt the Stability and Growth Pact, designed to ensure budgetary discipline after creation of the euro, a new exchange rate mechanism was set up to provide stability above the euro and the national currencies of countries that hadn't yet entered the eurozone. On 3 May 1998, at the European Council in Brussels, the 11 initial countries that would participate in the third stage from 1 January 1999 were selected.
To participate in the new currency
Stability and Growth Pact
The Stability and Growth Pact is an agreement, among the 28 member states of the European Union, to facilitate and maintain the stability of the Economic and Monetary Union. Based on Articles 121 and 126 of the Treaty on the Functioning of the European Union, it consists of fiscal monitoring of members by the European Commission and the Council of Ministers, the issuing of a yearly recommendation for policy actions to ensure a full compliance with the SGP in the medium-term. If a Member State breaches the SGP's outlined maximum limit for government deficit and debt, the surveillance and request for corrective action will intensify through the declaration of an Excessive Deficit Procedure; the pact was outlined by a resolution and two council regulations in July 1997. The first regulation "on the strengthening of the surveillance of budgetary positions and the surveillance and coordination of economic policies", known as the "preventive arm", entered into force 1 July 1998; the second regulation "on speeding up and clarifying the implementation of the excessive deficit procedure", known as the "dissuasive arm", entered into force 1 January 1999.
The purpose of the pact was to ensure that fiscal discipline would be maintained and enforced in the EMU. All EU member states are automatically members of both the EMU and the SGP, as this is defined by paragraphs in the EU Treaty itself; the fiscal discipline is ensured by the SGP by requiring each Member State, to implement a fiscal policy aiming for the country to stay within the limits on government deficit and debt. As outlined by the "preventive arm" regulation, all EU member states are each year obliged to submit a SGP compliance report for the scrutiny and evaluation of the European Commission and the Council of Ministers, that will present the country's expected fiscal development for the current and subsequent three years; these reports are called "stability programmes" for eurozone Member States and "convergence programmes" for non-eurozone Member States, but despite having different titles they are identical in regards of the content. After the reform of the SGP in 2005, these programmes have included the Medium-Term budgetary Objectives, being individually calculated for each Member State as the medium-term sustainable average-limit for the country's structural deficit, the Member State is obliged to outline the measures it intends to implement to attain its MTO.
If the EU Member State does not comply with both the deficit limit and the debt limit, a so-called "Excessive Deficit Procedure" is initiated along with a deadline to comply, which includes and outlines an "adjustment path towards reaching the MTO". This procedure is outlined by the "dissuasive arm" regulation; the SGP was proposed by German finance minister Theo Waigel in the mid-1990s. Germany had long maintained a low-inflation policy, an important part of the German economy's strong performance since the 1950s; the German government hoped to ensure the continuation of that policy through the SGP, which would ensure the prevalence of fiscal responsibility, limit the ability of governments to exert inflationary pressures on the European economy. As such, it was described to be a key tool for the Member States adopting the euro, to ensure that they did not only meet the Maastricht convergence criteria at the time of adopting the euro, but kept on to comply with the fiscal criteria for the following years.
The Pact has been criticised by some as being insufficiently flexible and needing to be applied over the economic cycle rather than in any one year. They fear that by limiting governments' abilities to spend during economic slumps it may hamper growth. In contrast, other critics think; this is amply evidenced by the “creative accounting” gimmickry used by many countries to achieve the required deficit to GDP ratio of 3 percent, by the immediate abandonment of fiscal prudence by some countries as soon as they were included in the euro club. The Stability Pact has been watered down at the request of Germany and France."Some remark that it has been applied inconsistently: the Council of Ministers failed to apply sanctions against France and Germany, while punitive proceedings were started when dealing with Portugal and Greece. In 2002 the European Commission President Romano Prodi described it as "stupid", but was still required by the Treaty to seek to apply its provisions; the Pact has proved to be unenforceable against big countries such as France and Germany, which were its strongest promoters when it was created.
These countries have run "excessive" deficits under the Pact definition for some years. The reasons that larger countries have not been punished include their influence and large number of votes on the Council of Ministers, which must approve sanctions; the Pact was further weakened in 2005 to waive Germany's violations. In March 2005
In the foreign exchange market and international finance, a world currency, supranational currency, or global currency is a currency, transacted internationally, with no set borders. In the 17th and 18th centuries, the use of silver Spanish dollars or "pieces of eight" spread from the Spanish territories in the Americas westwards to Asia and eastwards to Europe, forming the first worldwide currency. Spain's political supremacy on the world stage, the importance of Spanish commercial routes across the Atlantic and the Pacific, the coin's quality and purity of silver helped it become internationally accepted for over two centuries, it was legal tender in Spain's Pacific territories of the Philippines, Micronesia and the Caroline Islands and in China and other Southeast Asian countries until the mid-19th century. In the Americas it was legal tender in all of South and Central America and in the US and Canada until the mid-19th century. In Europe the Spanish dollar was legal tender in the Iberian Peninsula, in most of Italy including: Milan, the Kingdom of Naples, Sardinia, the Franche-Comté, in the Spanish Netherlands.
It was used in other European states including the Austrian Habsburg territories. Prior to and during most of the 19th century, international trade was denominated in terms of currencies that represented weights of gold. Most national currencies at the time were in essence different ways of measuring gold weights. Hence some assert; the emerging collapse of the international gold standard around the time of World War I had significant implications for global trade. Before 1944, the world reference currency was the United Kingdom's pound sterling; the transition between pound sterling and United States dollar and its impact for central banks was described recently. In the period following the Bretton Woods Conference of 1944, exchange rates around the world were pegged to the United States dollar, which could be exchanged for a fixed amount of gold; this reinforced the dominance of the US dollar as a global currency. Since the collapse of the fixed exchange rate regime and the gold standard and the institution of floating exchange rates following the Smithsonian Agreement in 1971, most currencies around the world have no longer been pegged to the United States dollar.
However, as the United States has the world's largest economy, most international transactions continue to be conducted with the United States dollar, it has remained the de facto world currency. According to Robert Gilpin in Global Political Economy: Understanding the International Economic Order: "Somewhere between 40 and 60 percent of international financial transactions are denominated in dollars. For decades the dollar has been the world's principal reserve currency; some of the world's currencies are still pegged to the dollar. Some countries, such as Ecuador, El Salvador, Panama, have gone further and eliminated their own currency in favor of the United States dollar. Only two serious challengers to the status of the United States dollar as a world currency have arisen. During the 1980s, the Japanese yen became used as an international currency, but that usage diminished with the Japanese recession in the 1990s. More the euro has competed with the United States dollar in international finance.
The euro inherited its status as a major reserve currency from the German mark and its contribution to official reserves has increased as banks seek to diversify their reserves and trade in the eurozone expands. As with the dollar, some of the world's currencies are pegged against the euro, they are Eastern European currencies like the Bulgarian lev, plus several west African currencies like the Cape Verdean escudo and the CFA franc. Other European countries, while not being EU members, have adopted the euro due to currency unions with member states, or by unilaterally superseding their own currencies: Andorra, Kosovo, San Marino, Vatican City; as of December 2006, the euro surpassed the dollar in the combined value of cash in circulation. The value of euro notes in circulation has risen to more than €610 billion, equivalent to US$800 billion at the exchange rates at the time. A 2016 report by the World Trade Organisation shows that the world's energy and services trade are made 60% with US dollar and 40% by euro.
As a result of the rapid internationalization of the renminbi, as of 2013 it was the world's 8th most traded currency. At the end of November, 2015, the Chinese renminbi was designated as one of the world's global currencies, became one of the currency in the currency basket known as special drawing rights. On 16 March 2009, in connection with the April 2009 G20 summit, the Kremlin called for a supranational reserve currency as part of a reform of the global financial system. In a document containing proposals for the G20 meeting, it suggested that the International Monetary Fund should be instructed to carry out specific studies to review the following options: Enlargement of the list of currencies used as reserve ones, based on agreed measures to promote the development of major regional financial centers. In this context, we should consider possible establishment of specific regional mechanisms which would contribute to reducing volatility of exchange rates of such reserve currencies. Introduction of a supra-national reserve cur
Euro gold and silver commemorative coins
This article covers the gold and silver issues of the euro commemorative coins. It includes some rare cases of bimetal collector coins. See €2 commemorative coins for circulating commemorative coins. In the Eurozone, as a legacy of old national practice is the minting of silver and gold commemorative coins. Unlike normal issues, these coins are not legal tender in all the Eurozone, but only in the country where the coin was issued; this means that while anyone is free to accept these coins as payment only in the country of issue must they be accepted to settle debt then this only under specific circumstances. Despite this, these coins are not intended to be used as means of payment, as their bullion value vastly exceeds their face value, so it does not constitute a serious problem; the major exception is Germany, where silver ten euro commemoratives are available at banks and some retailers at face value. The coins, however do not circulate, it is uncertain whether the Council of Ministers will grant them legal tender status elsewhere outside national boundaries, as San Marino and Vatican City issue these kinds of coins.
The Europa coin programme is a multi-member participation of minting precious metal coin with a particular theme that changes each year. This is a summary of the euro gold and silver commemorative coins issued by all countries in the eurozone. Austria introduced the Eurocoins in 2002 alongside the general issuance of euros in the Eurozone. From the beginning, they have been minting a large set of collectors' coins; the record was reached in 2004. There was a unique and particular edition of a special coin: the €100,000 Vienna Philharmonic, only 15 coins minted. Austria uses gold and silver for its collectors' coins. However, since 2003 a special bimetal coin, €25 face value, has been minted using silver and colored niobium, giving this set of coins a unique characteristic, since they have different color variations every year. With the exception of the 2004 Vienna Philharmonic coin and the introduced 2008 silver €1.25 Vienna Philharmonic, there is no variation in the number of issues when sorted by face value, from €5 to €100 there is a similar number of issues every year.
A unique piece in the Austrian collection is the Vienna Philharmonic coin. This coin is struck in 999.9 fine. It is issued every year, in four different face values and weights, it is used as an investment product, although it finishes always in hands of collectors. According to the World gold Council, it was the best selling gold coin in 1992, 1995 and 1996 worldwide. Since 1 February 2008, this coin is being minted in silver as well. Both sides of the coin feature the same as on the Vienna Philharmonic pure gold coin, its face value of 1.50 euros gives the silver piece its coin character, but is not relevant for the actual market value of the coin. Once again Austria made a major milestone in numismatics: the launch of the largest silver coin in the world has been made by Hall in Tirol, it was revealed on the occasion of the 2008 European Championship of Football in Austria and Switzerland. The front side design of the coin is as old as five centuries. 500 years ago in Trient, Kaiser Maximilian I crowned himself Emperor and a propaganda coin was issued by the mint in Hall.
On the coin was written: “King of all the lands in Europe”. This inscription included the word “Europe” for the first time; the obverse corresponds to that from the time of Maximilian in 1508. It shows; this massive coin has a weight of 20.08 kg. A smaller version for collectors will be minted and will be sold at €108. Belgium joined the Eurozone in 2002, since they have been minting collectors' coins. In the first two years, there were not that many coins being minted, only two issues per year. Since 2004, a gradual increase of their mints has been seen, with a record of six coins minted in 2006 and 2007 respectively. With the exception of the Belgian €2 commemorative coins and the normal Belgian euro coins, which are intended for circulation, only one coin has been minted by the Royal Belgian Mint using materials other than gold and silver; this coin, the 2006 "50th anniversary of the catastrophe Bois du Cazier at Marcinelle", is a silver coin with a portrait embossed in copper. It is the only bimetal commemorative coin minted so far.
They mint the collectors' coins issues in low quantities. The majority of the coins minted have a face value of €100 or €10. In recent years, coins with face value €50, €25, €20 and €12.50 have been minted. As of 20 October 2008, one Cypriot euro commemorative coin had been minted; this special high-value commemorative coin is not to be confused with €2 commemorative coins, which are coins designated for circulation and do have legal tender status in all countries of the Eurozone. The following table shows the number of coins minted per year. In the first section, the coins are grouped by the metal used, while in the second section they are grouped by their face value. Finland joined the eurozone in 2002, they continued their tradition of minting collectors' coins, they do not mint many coins per year. The record was reached in 2005 with five coins minted. Finland, like no other country in the union, has a tendency to use silver in their collectors' coin issues and a distinctive way of altern
International status and usage of the euro
The international status and usage of the euro has grown since its launch in 1999. When the euro formally replaced 12 currencies on 1 January 2002, it inherited their use in territories such as Montenegro and replaced minor currencies tied to the pre-euro currencies, such as in Monaco. Four small states have been given a formal right to use the euro, to mint their own coins, but all other usage has been unofficial outside the eurozone. With or without an agreement these countries, unlike those in the eurozone, do not participate in the European Central Bank or the Eurogroup, its international usage has grown as a trading currency, acting as an economic or political alternative to using the United States dollar. Its increasing usage in this sense has led to its becoming the only significant challenger to the US dollar as the world's main reserve currency. 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.
Prior to the launch of the euro, agreements were reached with Monaco, San Marino, Vatican City by EU member states allowing them to use the euro and mint a limited amount of euro coins to be valid throughout the Eurozone. However, they cannot print banknotes. All of these states had had monetary agreements to use yielded eurozone currencies; the Vatican and San Marino had their currencies pegged to the Italian lira and Monaco used the Monegasque franc, pegged to the French franc. Between 2010 and 2012, new agreements between the EU and Monaco, San Marino and the Vatican City came into force. A similar agreement was negotiated with Andorra and came into force on 1 April 2012. Andorra did not have an official currency. Prior to 2002, it used both the French franc and Spanish peseta as de facto legal tender currencies, though they never had an official monetary arrangement with either country, switched to the euro when it was introduced on 1 January 2002. After years of negotiations over concerns with banking secrecy, the EU and Andorra signed a monetary agreement on 30 June 2011 which made the euro the official currency in Andorra and allowed them to mint their own euro coins as early as 1 July 2013, provided they comply with the agreement's terms.
However, the first Andorran euro coins did not enter into circulation until January 2015. Outside the EU, there are three French territories and a British territory that have agreements to use the euro as their currency. All other dependent territories of eurozone member states that have opted not to be a part of EU with Overseas Country and Territory status, use local currencies which are pegged to the euro or US dollar; as non-sovereign entities, dependent territories which have adopted the euro are not permitted to mint euro coins like the European microstates, nor do they get a seat in the European Central Bank or the Eurogroup. France is responsible for ensuring that the laws governing the EMU apply in their territories which use the euro; the first OCTs to adopt the euro through a monetary agreement were the French overseas territories of Saint-Pierre-et-Miquelon, located off the coast of Canada, Mayotte in the Indian Ocean. They both adopted the euro on 1 January 1999 when the currency was first introduced at the electronic level.
Mayotte subsequently held a referendum in 2009 in which it decided to become an integral part of France. Its status was changed from an OCT to an OMR, where EU laws apply without separate agreements, on 1 January 2014, which rendered the previous monetary agreement unnecessary. On 22 February 2007, Saint Barthélemy and Saint Martin were politically separated from the French Outermost region Guadeloupe to form two new French overseas collectivities; this caused their status in the EU to be in legal limbo until ratification of the Treaty of Lisbon reaffirmed both territories remained in the EU. The euro continued to be used in both territories throughout this time without incident; when Saint Barthélemy subsequently became an overseas territory of the European Union on 1 January 2012, changing its status to an OCT, the territory had to sign a monetary agreement to continue using the euro. With the adoption of the euro by Cyprus per 1 January 2008, the Sovereign Base Areas of Akrotiri and Dhekelia, which had used the Cypriot pound decided to adopt the euro.
The base areas are an overseas territory of the United Kingdom, an EU member state which itself does not use the euro, but these bases are outside of the EU and under military jurisdiction. Their laws and currency have been aligned with those of the Republic of Cyprus, leading to the euro's adoption in the two areas. Montenegro and Kosovo have used the euro since its launch, as they used the German mark rather than the Yugoslav dinar. Unlike the states above, they do not have a formal agreement with the EU to use the euro as their currency, have never minted marks or euros. There were political concerns that Serbia could use the currency to destabilise these territories so they received Western help in adopting and using the mark, they switched to the euro. In North Kosovo, populated by the Serbian minority, the Serbian dinar, which replaced the Yugoslav dinar, continues to be used despite its lack of recognition or use elsewhere in Kosovo