The Currency Used Before Adopting The Euro By Country

Map created by Maps.InterludeThe map above shows what countries each European country used before it adopted the Euro. Below you can find a full list of currency names and the rate at which they were fixed to the Euro:

Currency	Code	Exchange Rate To Euro
Maltese lira	MTL	0.4293
Cypriot pound	CYP	0.585274
Latvian lats	LVL	0.702804
Irish pound	IEP	0.787564
German mark	DEM	1.95583
Bulgarian lev	BGN	1.95583
Dutch guilder	NLG	2.20371
Lithuanian litas	LTL	3.4528
Finnish markka	FIM	5.94573
French franc	FRF	6.55957
Croatian kuna	HRK	7.5345
Austrian schilling	ATS	13.7603
Estonian kroon	EEK	15.6466
Slovak koruna	SKK	30.126
Belgian franc	BEF	40.3399
Luxembourg franc	LUF	40.3399
Spanish peseta	ESP	166.386
Portuguese escudo	PTE	200.482
Slovenian tolar	SIT	239.64
Greek drachma	GRD	340.75
Italian lira	ITL	1,936.27

In addition to the 21 countries listed above, the following places also use the EURO:

Microstates:

• Andorra
• Monaco
• San Marino
• Vatican City

Unilateral (unofficial) Adopters:

• Kosovo
• Montenegro

France

• French Guiana
• Guadeloupe
• Martinique
• Mayotte
• Réunion
• Saint Martin
• French Southern and Antarctic Lands
• Saint Barthélemy Saint Barthélemy
• Saint Pierre and Miquelon

Portugal:

• Azores
• Madeira

Spain

• Canary Islands
• Ceuta
• Melilla

Finland

• Åland

Greece

• Mount Athos

British Overseas Territory:

• Akrotiri and Dhekelia

A Short History of the EURO:

Why the Euro Was Created?

1. Economic Integration & Stability
   • The euro is the centrepiece of European integration, born out of the Maastricht Treaty (1992) and launched in 1999 (physical notes/coins in 2002).
   • Goal: deepen the European Union’s single market by eliminating exchange-rate risks, transaction costs, and currency fluctuations within Europe.
2. Political Unity
   • A step toward greater European unity, strengthening ties between EU members and reducing the risk of future conflicts.
   • Seen as part of a long-term project of political integration after World War II and the Cold War.
3. Global Influence
   • Designed to make the EU an economic powerhouse with a global currency rivaling the U.S. dollar.
   • Increased bargaining power in trade and finance.

Why Countries Gave Up Their Currencies

1. Economic Incentives
   • Lower transaction costs for businesses and travellers within the eurozone.
   • Elimination of exchange-rate volatility, which facilitated cross-border investment and trade.
   • Access to deeper, more integrated capital markets.
2. Stability & Credibility
   • Smaller or historically weaker-currency countries (e.g., Italy, Spain, Greece) gained credibility by joining a currency anchored by the Bundesbank-style monetary discipline of the European Central Bank (ECB).
   • Countries with histories of inflation could “import” stability.
3. Political Commitment
   • A symbol of shared European identity. For many, adopting the euro meant visibly committing to the European project.

Successes

1. Trade & Integration
   • The euro eliminated intra-EU currency conversion costs, boosting trade and investment flows.
   • Price transparency encouraged competition and efficiency.
2. Global Role
   • Second most widely used currency after the U.S. dollar in reserves, trade invoicing, and international debt issuance.
   • The euro became a symbol of Europe’s economic power.
3. Low Inflation & Stability (initially)
   • The ECB maintained relatively low inflation rates, especially in the early years, compared to historical national averages.
4. Political Symbolism
   • The euro remains one of the most tangible symbols of European unity, used daily by ~350 million people.

Failures / Criticisms

1. Loss of Sovereignty
   • Member states cannot devalue their currency or independently set monetary policy to respond to local conditions.
   • This made countries vulnerable during downturns (e.g., Greece could not devalue its way out of crisis).
2. Eurozone Crisis (2009–2014)
   • Structural weaknesses exposed:
     • Shared currency without a shared fiscal policy.
     • Countries like Greece, Portugal, and Spain accumulated large debts without the ability to print money or adjust exchange rates.
   • Resulted in harsh austerity, bailouts, and social unrest.
3. Uneven Benefits
   • Core countries (Germany, Netherlands, etc.) benefited from lower borrowing costs and a competitive exchange rate.
   • Periphery countries sometimes suffered competitiveness losses because they couldn’t adjust their currencies.
4. Incomplete Political Union
   • The euro created pressures for deeper integration (banking union, fiscal oversight) but without full political consensus, leaving ongoing vulnerabilities.

What do you think, has the EURO been a success or not?