The introduction of the euro to States and territories outside the European Union

Article abstract:

The euro is not only the common currency of the twelve Member States of the European Monetary Union, but has also been accorded legal tender status in certain States and territories outside the European Union. This is a consequence of various monetary relations which had been entertained traditionally by certain Member States, such as France, Italy, Portugal, and Spain, with other States and territories. Due to the shift of competence for currency affairs from the Member States to the Union, these monetary relations had to be reconsidered and put on a new legal basis. In the following a short outline of the previous monetary relations between Member States of the European Monetary Union and third parties will be given. Furthermore, the solutions found to accommodate these monetary relations in the framework of the European Monetary Union will be presented.