To begin with, anyone that guesses what book the title of this post came from gets extra credit. The EU's finance ministers warned Montenegro not to unilaterally "Euro-ize" as it is incompatible with EU law. In order to adopt the Euro, countries must meet certain financial criteria, although the EU has bent the rules before. When Montenegro split from Serbia last year and became independent, using the Euro was the most effecient and expedient thing to do rather than create its own currency. In fairness, the warning was less directed at Montenegro than at EU member states that may try to backdoor their way into using the Euro without meeting the criteria.
On the other hand, it would be thought that the EU would happy, nay thrilled, to have some legitimate entity wanted to use their currency. Until now, only rogue states (Saddam Hussein, Iran, Venezuela, etc.) looking to thumb their nose at the US and criminals (the 500 Euro note, being highest value, widely circulated paper currency in the world) looking for portability of assets were only ones voluntarily adopting the Euro.
For all of Europe's talk about becoming the world's next reserve currency, this is just another point, along with an underdeveloped bond market, showing they have a way to go. If Montenegro wants to use someone else's currency, they should try the US dollar. They would be welcomed with open arms.
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2 comments:
Oh, the Europeans are not happy unless they have something about which to complain.
As for your extra credit, should I go to East Egg or West Egg in search of the answer?
Gatsby lived in the less fashionable West Egg, so I would go there
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