The euro convergence criteria (also known as the Maastricht criteria) are the criteria which European Union member states are required to meet to enter the third stage of the Economic and Monetary Union (EMU) and adopt the euro as their currency. The four main criteria, which actually comprise five criteria as the "fiscal criterion" consists of both a "debt criterion" and a "deficit criterion", are based on Article 140 (ex article 121.1) of the Treaty on the Functioning of the European Union.
Full EMU membership is only open to EU member states. However, the European microstates of Andorra, Monaco, San Marino and the Vatican City, which due to their small size are not members of the EU, have signed monetary agreements with EU which allow them officially to adopt the euro and issue their own variant of euro coins. These states had all previously used one of the eurozone currencies replaced by the euro, or a currency pegged to one of them. These states are not members of the eurozone and do not get a seat in the European Central Bank (ECB) or the Eurogroup.
As part of the EU treaty, all of the EU Member States are obliged to adhere to the Stability and Growth Pact (SGP), which serves as a framework to ensure price stability and fiscal responsibility, has adopted identical limits for governments budget deficit and debt as the convergence criteria. Due to the fact that several countries did not exercise a sufficient level of fiscal responsibility during the first 10 years of the euro's lifetime, two major SGP reforms were recently introduced. The first reform was the Sixpack which entered into force in December 2011, and it was followed in January 2013 by the even more ambitious Fiscal Compact, which was signed by 25 out of the then-27 EU member states.
The Maastricht Treaty, which was signed in February 1992 and entered into force on 1 November 1993, outlined the 5 convergence criteria EU member states are required to comply with to adopt the new currency the euro. The purpose of setting the criteria was to achieve price stability within the eurozone and ensure it wasn't negatively impacted when new member states accede. The framework of the five criteria was outlined by article 109j.1 of the Maastricht Treaty, and the attached Protocol on the Convergence Criteria and Protocol on the Excessive Deficit Procedure. The original treaty article was later renumbered to become article 121.1 of the Amsterdam Treaty, and later renumbered again to Article 140 of the Treaty on the Functioning of the European Union. Aside from the renumbering, no significant change have happened to the content of the "convergence criteria article" and its referred to Protocol on the Convergence Criteria and Protocol on the Excessive Deficit Procedure. The precise definition and method of measuring compliance was subsequently further developed by the EMI (later known as ECB) in their first three reports published in April 1995, November 1995 and November 1996. The full definition of the five criteria are summarised below.
The ECB publishes a Convergence Report at least every two years to check how well the EU members aspiring for euro adoption comply with the criteria. The first full convergence report was published in November 1996, and concluded that only 3 out of 15 EU member states (Denmark, Luxembourg and Ireland) were completely compliant with the criteria at that point in time. As a majority of states were not in compliance, the Council decided to delay the introduction of the euro by two years to 1 January 1999. In March 1998 a more positive second convergence report concluded that 11 out of 12 applying countries were prepared for the electronic introduction of the euro on 1 January 1999, with only Greece failing to qualify by the deadline. Subsequent convergence reports have so far resulted in an additional 8 EU member states complying with all criteria and adopting the euro (Greece, Slovenia, Cyprus, Malta, Slovakia, Estonia, Latvia and Lithuania). The latest convergence report was published in June 2014, and checked for compliance in the reference year from May 2012 – April 2014, where Lithuania managed to fully comply – thus becoming the next 19th eurozone member. As the reference values for HICP inflation and long-term interest rates change on a monthly basis, any member state with a euro derogation has the right to ask the ECB for an updated compliance check, whenever they believe they have met all both economic and legal convergence criteria. For example, Latvia asked for such an extraordinary compliance check in March 2013 (outside the regular 2-year interval for automatic assessments).
|Bulgaria||Lev||BGN||2007-01-01||None||1.95583[nb 1]||ERM-II application
by July 2019
|39% in favour
|All except ERM-II
|Coins design approved|
|Croatia||Kuna||HRK||2013-07-01||None||Free floating||ERM-II by 2020,
Euro by 2025
|43% in favour
|Czech Republic||Koruna||CZK||2004-05-01||None||Free floating||Not on governing
|22% in favour
|Denmark||Krone||DKK||1973-01-01||1999-01-01||7.46038||Not on governing
|31% in favour
|Fully compliant||Treaty opt-out from euro membership, |
rejected membership via referendum
|Hungary||Forint||HUF||2004-05-01||None||Free floating||Not on governing
|57% in favour
|Poland||Złoty||PLN||2004-05-01||None||Free floating||Not on governing
|36% in favour
|Romania||Leu||RON||2007-01-01||None||Free floating||Membership by 2022||57% in favour
|Sweden||Krona||SEK||1995-01-01||None||Free floating||Not on governing
|25% in favour
|All except ERM-II
|Rejected membership |
via referendum[nb 2]
|GBP||1973-01-01||None||Free floating||Withdrawing from
the EU in 2019
|30% in favour
|Not compliant||Treaty opt-out |
from euro membership
In 2009 the authors of a confidential International Monetary Fund (IMF) report suggested that in light of the ongoing global financial crisis, the EU Council should consider granting new EU member states which are having difficulty complying with all five convergence criteria the option to "partially adopt" the euro, along the lines of the monetary agreements signed with the European microstates outside the EU. These states would gain the right to adopt the euro and issue a national variant of euro coins, but would not get a seat in ECB or the Eurogroup until they met all the convergence criteria. However, the EU has not made use of this alternative accession process.
|Convergence criteria (valid for the compliance check conducted by ECB in their May 2018 Report)|
|Country||HICP inflation rate[nb 3]||Excessive deficit procedure||Exchange rate||Long-term interest rate[nb 4]||Compatibility of legislation|
|Budget deficit to GDP||Debt-to-GDP ratio||ERM II member||Change in rate[nb 5]|
|Reference values[nb 6]||Max. 1.9%[nb 7]
(as of 31 Mar 2018)
|None open (as of 3 May 2018)||Min. 2 years
(as of 3 May 2018)
|Max. ±15%[nb 8]
|Max. 3.2%[nb 9]
(as of 31 Mar 2018)
(as of 20 March 2018)
(Fiscal year 2017)
(Fiscal year 2017)
|EU members (outside the eurozone)|
|Denmark||1.0%||None||19 years, 2 months||0.1%||0.6%||Unknown|
The compliance check above was conducted in June 2014, with the HICP and interest rate reference values specifically applying for the last assessment month with available data (April 2014). As reference values for HICP and interest rates are subject for monthly changes, any EU member state with a euro derogation, has the right to ask for a renewed compliance check at any time during the year. For this potential extra assessment, the table below feature Eurostat's monthly recalculation of criteria values being used in the calculation process to determine the upper limit for HICP inflation and long-term interest rates, where a certain fixed buffer value is added to the moving yearly average for the three EU Member States with the lowest HICP figures (ignoring states classified as "outliers").
The black values in the table are sourced by the officially published convergence reports, while the lime-green values are only qualified estimates – not confirmed by any official convergence report – but sourced by monthly estimation reports published by the Polish Ministry of Finance. The reason why the lime-green values are only estimates, is because the "outlier" selection – ignoring certain states from the reference value calculation – beside of depending on a quantitative assessment also depends on a more complicated overall qualitative assessment, and hence it can not be predicted with absolute certainty who of the states the Commission will deem to be outliers. So any selection of outliers by the lime-green data lines – shall only be regarded as qualified estimates – which potentially could be different from those outliers which the Commission would have selected if they had published a specific report at the concerned point of time.[nb 1]
The national fiscal accounts for the previous full calendar year are released each year in April (next time 23 April 2015). As the compliance check for both the debt and deficit criteria always awaits this release in a new calendar year, the first possible month to request a compliance check will be April, which would result in a data check for the HICP and Interest rates during the reference year from 1 April to 31 March. Any EU Member State may also ask the European Commission to conduct a compliance check, at any point of time during the remainder of the year, with HICP and interest rates always checked for the past 12 months – while debt and deficit compliance always will be checked for the 3-year period encompassing the last completed full calendar year and the two subsequent forecast years. As of 12 September 2014, all of the remaining euro derogation states without an opt-out, had not yet entered ERM-II, which mean its highly unlikely any of them will ask the European Commission to conduct an extraordinary compliance check ahead of the publication of the next regular convergence report (scheduled for release in May/June 2016).
António Luís Santos da Costa GCIH (born 17 July 1961) is a Portuguese lawyer and politician serving as the 119th and current Prime Minister of Portugal since 26 November 2015. Previously, he was Minister of Parliamentary Affairs from 1997 to 1999, Minister of Justice from 1999 to 2002, Minister of State and Internal Administration from 2005 to 2007, and Mayor of Lisbon from 2007 to 2015. He was elected as Secretary-General of the Socialist Party in September 2014.António Guterres
António Manuel de Oliveira Guterres (; Portuguese: [ɐ̃ˈtɔnju ɡuˈtɛʁɨʃ]; born 30 April 1949) is a Portuguese politician and diplomat who is serving as the ninth Secretary-General of the United Nations. Previously, he was the United Nations High Commissioner for Refugees between 2005 and 2015.Guterres was the Prime Minister of Portugal from 1995 to 2002 and was the Secretary-General of the Socialist Party from 1992 to 2002. He served as President of the Socialist International from 1999 to 2005.
In both a 2012 and 2014 poll, the Portuguese public ranked him as the best Prime Minister of the previous 30 years.Bulgaria and the euro
Bulgaria committed to switching its currency, the lev, to the euro upon its joining the European Union in 2007, as stated in its EU accession treaty.
The transition will occur once the country meets all the euro convergence criteria; it currently meets three of the five criteria, the exception being its membership for at least two years of the EU's official exchange rate mechanism (ERM II), which it has not yet joined despite the Bulgarian lev having been pegged to the euro since its introduction in 1999. In 2011 Bulgaria's Minister of Finance Simeon Djankov stated that adoption of the euro would be postponed until after the Eurozone crisis had stabilized. Bulgarian euro coins have not yet been designed, but their motif has been chosen to be the Madara Rider.Bulgarian lev
The lev (Bulgarian: лев, plural: лева, левове / leva, levove) is the currency of Bulgaria. It is divided in 100 stotinki (стотинки, singular: stotinka, стотинка). In archaic Bulgarian the word "lev" meant "lion", a word which in the modern language became lăv (IPA: /lɤf/) (in Bulgarian: лъв). Stotinka comes from the word "sto" (сто) - a hundred.Copenhagen criteria
The Copenhagen Criteria are the rules that define whether a country is eligible to join the European Union. The criteria require that a state has the institutions to preserve democratic governance and human rights, has a functioning market economy, and accepts the obligations and intent of the EU.
These membership criteria were laid down at the June 1993 European Council in Copenhagen, Denmark, from which they take their name. Excerpt from the Copenhagen Presidency conclusions:
Membership requires that candidate country has achieved stability of institutions guaranteeing democracy, the rule of law, human rights, respect for and protection of minorities, the existence of a functioning market economy as well as the capacity to cope with competitive pressure and market forces within the Union. Membership presupposes the candidate's ability to take on the obligations of membership including adherence to the aims of political, economic and monetary union.
Most of these elements have been clarified over the last decade by legislation and other decisions of the European Council, the European Commission and the European Parliament, as well as by the case law of the European Court of Justice and the European Court of Human Rights. However, there are sometimes slightly conflicting interpretations in current member states—some examples of this are given below.Czech Republic and the euro
The Czech Republic is bound to adopt the euro in the future and to join the eurozone once it has satisfied the euro convergence criteria by the Treaty of Accession since it joined the European Union (EU) in 2004. The Czech Republic is therefore a candidate for the enlargement of the eurozone and it uses the Czech koruna as its currency, regulated by the Czech National Bank, a member of the European System of Central Banks, and does not participate in European Exchange Rate Mechanism II (ERM II).
Although the Czech Republic is economically well positioned to adopt the euro, following the European debt crisis there has been considerable opposition among the public to the adoption of the euro currency. According to a poll conducted in April 2017, 29% of Czechs were in favour of introducing the euro while 70% were opposed and 1% undecided. As of 2017, there is no target date by the government for joining the ERM II or adopting the euro. The ruling cabinet that was formed following the 2017 legislative election does not plan to proceed with euro adoption within its term.Debt-to-GDP ratio
In economics, the debt-to-GDP ratio is the ratio between a country's government debt (measured in units of currency) and its gross domestic product (GDP) (measured in units of currency per year). A low debt-to-GDP ratio indicates an economy that produces and sells goods and services sufficient to pay back debts without incurring further debt. Geopolitical and economic considerations – including interest rates, war, recessions, and other variables – influence the borrowing practices of a nation and the choice to incur further debt.Economic and Monetary Union of the European Union
The Economic and Monetary Union (EMU) is an umbrella term for the group of policies aimed at converging the economies of member states of the European Union at three stages. The policies cover the 19 eurozone states, as well as non-euro European Union states.
Each stage of the EMU consists of progressively closer economic integration. Only once a state participates in the third stage it is permitted to adopt the euro as its official currency. As such, the third stage is largely synonymous with the eurozone. The euro convergence criteria are the set of requirements that needs to be fulfilled in order for a country to join the eurozone. An important element of this is participation for a minimum of two years in the European Exchange Rate Mechanism ("ERM II"), in which candidate currencies demonstrate economic convergence by maintaining limited deviation from their target rate against the euro.
Nineteen EU member states, including most recently Lithuania, have entered the third stage and have adopted the euro as their currency. All new EU member states must commit to participate in the third stage in their treaties of accession. Only Denmark and the United Kingdom, whose EU membership predates the introduction of the euro, have legal opt outs from the EU Treaties granting them an exemption from this obligation. The remaining seven non-euro member states are obliged to enter the third stage once they comply with all convergence criteria.Economy of the European Union
The European Union is the second largest economy in the world in nominal terms (after the United States) and according to purchasing power parity or PPP (after China). The European Union's GDP was estimated to be $18.8 trillion (nominal) in 2018, representing ~22% of global economy (Nominal global GDP).
The euro, used by 19 of its 28 members, is the second largest reserve currency as well as the second most traded currency in the world after the United States dollar. The euro is the official currency in 25 countries, in the eurozone and in six other European countries, officially or de facto.
The European Union (EU) economy consists of an internal market of mixed economies based on free market and advanced social models. The GDP per capita (PPP) was $37,800 in 2017, compared to $59,495 in the United States, $42,695 Japan and $16,636 in China. There are significant disparities in GDP per capita (PPP) between member states ranging from $105,148 in Luxembourg to $21,678 in Bulgaria. With a low Gini coefficient of 31, the European Union has a more egalitarian repartition of incomes than the world average.Major economic hubs and financial centres where the large number of institutions, companies and banks is located are Amsterdam, Brussels, Bucharest, Dublin, Frankfurt, Göteborg, Helsinki, Lisbon, London, Madrid, Milan, Paris and Warsaw.
Euronext is the main stock exchange of the Eurozone and the 7th world largest by market capitalisation. Foreign investments made in the European Union total $5.1 trillion in 2012, while the EU's investments in foreign countries total $9.1 trillion, by far the highest domestic and foreign investments in the world.Since the beginning of the public debt crisis in 2009, opposite economic situations have emerged between Southern Europe on one hand, and Central and Northern Europe on the other hand: a higher unemployment rate and public debt in the Mediterranean countries with the exception of Malta, and a lower unemployment rate with higher GDP growth rate in the Eastern and in Northern member countries. In 2015, public debt in the European Union was 85% of GDP, with disparities between the lowest rate, Estonia with 9.7%, and the highest, Greece with 176%.The ten largest trading partners of the European Union are the United States, China, Switzerland, Russia, Turkey, Japan, Norway, South Korea and India (trade with all these countries crossed $110 billion mark in 2016). The EU is represented as a unified entity in the World Trade Organization (WTO), the G-20 and G7, alongside with the EU's member countries participating.Eurobonds
European bonds are proposed government bonds issued in euros jointly by the 19 eurozone nations. The idea was first raised by the European Commission in 2011. Eurobonds would be debt investments whereby an investor loans a certain amount of money, for a certain amount of time, with a certain interest rate, to the eurozone bloc altogether, which then forwards the money to individual governments.
Eurobonds have been suggested as a way to tackle the European sovereign debt crisis as the indebted states could borrow new funds at better conditions as they are supported by the rating of the non-crisis states.
Because Eurobonds would allow already highly indebted states access to cheaper credit thanks to the strength of other eurozone economies, they are controversial, and may suffer from the free rider problem.Eurozone
The eurozone, officially called the euro area, is a monetary union of 19 of the 28 European Union (EU) member states which have adopted the euro (€) as their common currency and sole legal tender. The monetary authority of the eurozone is the Eurosystem. The other nine members of the European Union continue to use their own national currencies, although most of them are obliged to adopt the euro in the future.
The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain. Other EU states (except for Denmark and the United Kingdom) are obliged to join once they meet the criteria to do so. No state has left, and there are no provisions to do so or to be expelled. Andorra, Monaco, San Marino, and Vatican City have formal agreements with the EU to use the euro as their official currency and issue their own coins. Kosovo and Montenegro have adopted the euro unilaterally, but these countries do not officially form part of the eurozone and do not have representation in the European Central Bank (ECB) or in the Eurogroup.The ECB, which is governed by a president and a board of the heads of national central banks, sets the monetary policy of the zone. The principal task of the ECB is to keep inflation under control. Though there is no common representation, governance or fiscal policy for the currency union, some co-operation does take place through the Eurogroup, which makes political decisions regarding the eurozone and the euro. The Eurogroup is composed of the finance ministers of eurozone states, but in emergencies, national leaders also form the Eurogroup.
Since the financial crisis of 2007–08, the eurozone has established and used provisions for granting emergency loans to member states in return for enacting economic reforms. The eurozone has also enacted some limited fiscal integration: for example, in peer review of each other's national budgets. The issue is political and in a state of flux in terms of what further provisions will be agreed for eurozone change.First Rutte cabinet
The First Rutte cabinet, also called the Rutte–Verhagen cabinet was the cabinet of the Netherlands from 14 October 2010 until 5 November 2012. The cabinet was formed by the political parties People's Party for Freedom and Democracy (VVD) and the Christian Democratic Appeal (CDA) after the election of 2010. The right-wing cabinet was a minority government in the House of Representatives but was supported by the Party for Freedom (PVV) for a majority. It was the first of three cabinets of Mark Rutte, the Leader of the People's Party for Freedom and Democracy as Prime Minister, with Maxime Verhagen the Leader of the Christian Democratic Appeal serving as Deputy Prime Minister.History of the Italian Republic
After World War II and the overthrow of Mussolini's fascist regime, Italy's history was dominated by the Christian Democracy (Democrazia Cristiana, DC) political party for 48 years—from the 1946 election until the 1994 election—while the opposition was led by the Italian Communist Party (PCI).
This situation changed due to an external shock—the crisis and dissolution of the Soviet Union—and an internal one—the Tangentopoli corruption scandal and operation mani pulite (Italian for "Clean Hands"). These international and national political turmoils led to the reform of the electoral system (from almost perfect proportional to uninominal/multi-seat circumscriptions) and radical restructuring of the Italian political system, including the dissolution of most traditional political parties, including Christian Democracy and Communist Party.
In 1994, in the midst of the mani pulite operation which shook political parties, media magnate Silvio Berlusconi, owner of three private TV channels, several newspapers and magazines, and Italy's main publishing house Mondadori, won the March 27 general election and formed the Berlusconi I Cabinet.
Although ousted after a few months of government, Berlusconi became one of Italy's most important political and economic figures for the next two decades. After leading the Opposition to the Dini (1995–1996), Prodi I (1996–1998), D'Alema I (1998–1999), D'Alema II (1999–2000) and Amato II Cabinet (2000–2001), Berlusconi returned to power in 2001 after winning the 13 May general election. He eventually lost the 2006 general election five years later to Romano Prodi and his Union coalition but won the 2008 general election and returned to power in June 2008. In November 2011, Berlusconi lost his majority in the Chamber of Deputies, and resigned. His successor, Mario Monti formed a new government, composed of "technocrats" and supported by both the center-left and the center-right parties.
After the 2013 election resulted in a hung parliament, in April the Vice-Secretary of the Democratic Party, Enrico Letta, formed a Cabinet composed by both center-left and the center-right parties. On 22 February 2014, after tensions in the Democratic Party (PD), the PD's Secretary Matteo Renzi sworn as new Prime Minister.History of the euro
The euro came into existence on 1 January 1999, although it had been a goal of the European Union (EU) and its predecessors since the 1960s. After tough negotiations, particularly 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 (even though Denmark has a fixed exchange rate policy with the euro).
In 1999 the currency was born virtually and in 2002 notes and coins began to circulate. It rapidly took over from the former national currencies and slowly expanded behind the rest of the EU. In 2009 the Lisbon Treaty finalised its political authority, the Eurogroup, alongside the European Central Bank.Italian General Confederation of Labour
The Italian General Confederation of Labour (Italian: Confederazione Generale Italiana del Lavoro; CGIL) is a national trade union based in Italy. It was formed by agreement between socialists, communists, and Christian democrats in the "Pact of Rome" of June 1944. But in 1950, socialists and Christian democrats split forming UIL and CISL, and since then the CGIL has been influenced by the Communist Party (PCI) and until recent years by its political heirs.It has been the most important Italian trade union since its creation. It has a membership of over 5.5 million. Along with the decline of membership within its political counterpart, the Democratic Party (PD), its membership is in steep decline since 2013, with the percentage of pensioners in constant rise. On July 1, 2015, the number of working adults reached a ceiling at 2.185.099. The CGIL is currently the second largest trade union in Europe, after the German DGB, which has over 6 million members.
The CGIL is affiliated with the International Trade Union Confederation and the European Trade Union Confederation, and is a member of the Trade Union Advisory Committee to the OECD.Poland and the euro
Poland does not use the euro as its currency. However, under the terms of their Treaty of Accession with the European Union, all new Member States "shall participate in the Economic and Monetary Union from the date of accession as a Member State with a derogation", which means that Poland is obliged to eventually replace its currency, the złoty, with the euro.
There is no target date for Polish euro adoption, and no fixed date for when the country will join ERM-II (the fifth euro convergence criterion). The country's former Deputy Prime Minister Janusz Piechociński has stated that Poland will not join the Euro until at least 2020.Euro adoption will require the approval of at least two thirds of the Sejm to make a constitutional amendment changing the official currency from the złoty to the euro. The ruling Law and Justice Party opposes euro adoption. Former PM Donald Tusk has said that he may agree to a referendum on euro participation in order to gain their support for a constitutional amendment. Public opinion is against participation according to polls, with more than 70 percent believing that adoption of the euro would be bad for the Polish economy according to one poll from September 2012.There is not yet any official information on the design process for the Polish national sides of the euro coins.Romania and the euro
Romania is required by its EU accession agreement to replace the current national currency, the Romanian leu, with the euro, as soon as Romania fulfills all of the six nominal euro convergence criteria. The leu is not yet part of the European Exchange Rate Mechanism (ERM II), of which minimum two years of stable membership is one of the six nominal convergence criteria to comply with to qualify for euro adoption. The current Romanian government in addition established a self-imposed criteria to reach a certain level of "real convergence", as a steering anchor to decide the appropriate target year for ERM II-membership and euro adoption. As of March 2018, the scheduled date for euro adoption in Romania is 2024, according to Liviu Dragnea, head of the ruling Party of Social Democrats.Theo Waigel
Theodor "Theo" Waigel (born 22 April 1939) is a German politician of the Christian Social Union in Bavaria (CSU).
Waigel is a lawyer, and earned a doctorate in 1967. He was a member of the Bundestag from 1972 to 2002. He served as Federal Minister of Finance of Germany in the Cabinet of Chancellor Helmut Kohl from 1989 to 1998, and as Chairman of the Christian Social Union in Bavaria from 1988 to 1999. He is known as the father of the Euro, the European currency. He played a vital role in its introduction as German Minister of Finance. He also managed to impose an austerity program on West Germans and overcome the massive deficits of German unification to meet the strict fiscal benchmarks mandated by Europe's single currency. In 2009, he was appointed Honorary Chairman of the CSU.United Kingdom and the euro
The United Kingdom has never sought to adopt the euro as its official currency for the duration of its membership of the European Union (EU), and secured an opt-out at the euro's creation via the Maastricht Treaty in 1992. Polls have shown that the majority of British people have been against adopting the euro, and in a June 2016 referendum the UK voted to withdraw from the EU which would virtually eliminate the chance of any future adoption. Despite never being a member of the eurozone, the currency is used in the UK's Cypriot territories and as a secondary currency in Gibraltar; furthermore, London is home to the majority of the euro's clearing houses.