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Information about Danish Kroner and the Euro

The Euro and the Euro-countries

The European Union (EU) is the largest economy in the World covering 27 countries with a total of approx. 500 million inhabitants. On January 1st, 2007 Bulgaria and Romania joined the EU with their totally approx. 20 million inhabitants.

The Euro (€) is the common currency for many of the EU countries. It was fully implemented on January 1st, 2002, where 12 of the then 15 European Union countries (Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxemburg, the Netherlands, Portugal and Spain) converted their own respective currencies to the Euro after a year-long preparation process. The Euro notes and coins were released on January 1st, 2002, and after a short transition period (a few months) their old coins and notes are now only exchangeable in their respective national banks.

Some partly autonomous regions within the above mentioned countries are outside the EU but also use the Euro. Examples are the Aland Islands (Finland) and the Canary Islands (Spain).

Slovenia joined the Euro at the 1st of January 2007.

Non-EU countries using the Euro

Before the conversion, a number of small countries like the Vatican City, Monaco and Andorra used currencies like Italian Lira, French Franc or Spanish Pesetas, now converted to Euro. They now use Euro. In Serbia & Montenegro the province of Montenegro uses the Euro, and the province of Kosovo uses the Euro together with the Serbian 'Yugoslavian Dinar'.

The French overseas departments Guadeloupe, French Guyana, Martinique and Réunion obviously use the Euro, too. The French non-EU territories Saint-Pierre-et-Miquelon and Mayotte also use the Euro.

In total more than 315 million people around the World use the Euro as their national currency.

European Union countries NOT using the Euro

  • Denmark is a member of the European Union (EU), but the Danish people decided in a poll on 28 September 2000 to stay outside the Euro (EUR) and keep its own currency, the Danish Krone (DKK). Denmark is expected to vote again within the next 5 years or so, and at the moment (Winter 2006) the opinion measurements typically say approx. 45% yes, 40% no and 15% don't know.

    The Danish Krone (DKK) is officially linked to the Euro within a band of EUR 1 = DKK 7.46038 +/- 2.25% (DKK 7.29252 to 7.62824). Over the last years the band has been a lot closer, typically 7.42 to 7.48 = +/- 0.5%. Official EU confirmation link.

    The Danish economy is generally very good and Denmark fulfils the demands for entering the Euro:
    • Denmark has a plus on international payments and the gross international debts were fully paid back in 2006.

    • Denmark has a plus on the national budget and is quickly paying back on the large internal public debts created mainly in the 70'es and early 80'es. The inflation is low, and unemployment is very low (in fact, Denmark is now hiring mainly skilled labour from mainly Germany and Eastern Europe).

    • The Danish economy is not very much affected by the international oil price level because of its own gas and oil wells in the North Sea producing a little more than the total Danish energy consumption.

  • Sweden voted 'No' to the Euro on 14 September 2003. They will probably try again shortly after Denmark (if so) has said 'Yes' to the Euro.

  • United Kingdom kept the Pound without a poll. They are expected (2006) maybe to enter the Euro some day in a distant future after a poll.

  • Cyprus (Greek part), the Czech Republic, Estonia, Hungaria, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia entered the EU on May, 1st 2004: Bulgaria and Romania entered on January 1st, 2007. They still use their original currencies, but they all want to enter the Euro. But first they must have been a member of the 'Exchange Rate Mechanism II' (ERM II) for two years without any serious problems with keeping the rate, and they must fulfil the declared economic stability demands for entering the Euro. Here follows a table of when the new countries are expected to enter the Euro (source: the Danish newspaper Jylland-Posten 2004-05-01 and 2006-01-27):

    Country Planned entering the Euro
    Cyprus (Greek part) 1 January 2008
    The Czech Republic 1 January 2010
    Estonia Originally 1 January 2007, now ?
    Hungaria 1 January 2010
    Latvia 1 January 2008
    Lithuania Originally 1 January 2007, now ?
    Malta 1 January 2008
    Poland Maybe poll in 2009
    Slovakia 1 January 2009

European non-EU countries and the EU applicants

Iceland, Norway and Switzerland and the old Sovjet republics (except Estonia, Latvia and Lithuania) are not members of the EU, and they are not applicants either. Albania, Bosnia-Herzegovina and Serbia & Montenegro are still not politically and economically stable and/or democratic enough to enter.

Croatia has started negotiating the entry terms and is expected to enter in 2009. FYRO Macedonia is probably next in the row to start the process of entering the EU.

Turkey has been negotiating entry-term since 2005. Turkey has made great progress with human rights and economy, but resistance in the actual EU countries is big, and the reforms have so far been more theoretical than practical. The entry date is still a problem, 2015 is the most early possible, but as late as 2025 – or never – is possible, too! One of the biggest problems, free Turkish immigration to other EU countries, will probably be more or less blocked for further 15 to 30 years – or forever. The Turkish economy is still too weak for an EU membership, and the political stability is doubtful. Furthermore, several countries incl. France is talking about a poll about Turkish membership, and the result is at the moment most likely to become negative. On the other hand, Turkey contributes positively to the political stability in the middle East, it is a strong NATO member, and USA is putting a lot of pressure on EU for accepting Turkey as a member.

None of these countries are Euro countries.

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Updated: 2 January 2007
Webmaster: Peter Ring, PRC