Who decides the currency of a country

How does a country become a member of the monetary union

The economics and finance ministers decide

The basic requirement for a country to be able to introduce the euro is its membership in the European Union. Whether an EU member state fulfills the necessary requirements for the introduction of the euro is decided by the member states joining later according to the same procedure as for the participants from the beginning.

The following procedure applies to the participants in the second round: According to Article 109k (2) of the EC Treaty, the European Commission and the European Central Bank (ECB) report to the Council at least once every two years or at the request of a member state for which a derogation applies the status of the convergence criteria.

After hearing the European Parliament and after discussion in the Council, which meets in the composition of the Heads of State and Government, the Economic and Financial Affairs Council, acting on a proposal from the Commission, decides by a qualified majority which of the Member States to which a derogation applies Meet the requirements to join. This can then lift the exemptions for the EU member states concerned and thus make them member states of the monetary union.

All EU member states take part in the vote. The main difference to the first-time participants is that the final decision is taken by the Council of Economic and Finance Ministers and not by the Council of Heads of State and Government.



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