List of European Countries That Don't Use Euro and Why

December 10, 2024 | 10:29 am

TEMPO.CO, Jakarta - When traveling to several European countries at once, travelers can take advantage of the single currency adopted by the member countries of the European Union (EU). However, there are seven European countries that do not use the euro and have maintained their own national currencies for various reasons. 

Citing Investopedia and the EU's official website, here is a list of European countries that do not use the euro and some reasons behind the decision.

Convergence Criteria

Upon joining the Eurozone, EU countries must meet specific convergence criteria in order to adopt the euro. These criteria include:

• Price stability.

• Sound public finances to ensure sustainability.

• Exchange rate stability to avoid excessive fluctuations.

• Long-term interest rates to assess economic convergence.

7 European Countries That Don’t Use Euro

1. Bulgaria - Bulgarian Lev (BGN)

As part of the EU since 2007, Bulgaria is among the European countries that do not use the euro, primarily due to its failure to meet the Eurozone criteria. Key obstacles include high inflation, which has been running at 5.1% annually, political instability, and wavering public support for the move. The latest plan is for Bulgaria to join the Eurozone by mid-2025, although 2026 appears to be a more realistic target.

2. Czech Republic - Czech Koruna (CZK)

The economic disparity between the Czech economy and the broader EU is a major factor in the Czech Republic’s decision to keep koruna as its primary currency. The country has a particularly high industrial sector in its GDP, which presents challenges in aligning with the more service-oriented economies of the Eurozone. 

3. Denmark - Danish Krone (DKK)

Despite meeting the convergence criteria, Denmark is exempt from adopting the euro due to a referendum in 2000. As a result, the Danish krone remains the official currency. However, since January 1999, Denmark has participated in the Exchange Rate Mechanism II (ERM II), which allows the krone to be stabilized against the euro while maintaining the country's independence in monetary policy.

4. Hungary - Hungarian Forint (HUF)

The forint has remained Hungary's primary currency since its introduction in 1946. Despite joining the EU in 2004, the country has yet to adopt the euro as it has not met the necessary convergence criteria. Hungary has faced several challenges in fulfilling these requirements, including a high budget deficit, elevated inflation, and a significant level of public debt.

5. Poland - Polish Zloty (PLN)

Although Poland committed to adopting the euro under the terms of its 2004 EU accession treaty, the country remains outside the Eurozone. Driven by strong public opposition—over 60% of Poles are against adopting the euro—Poland is likely to continue using the zloty as its official currency for the foreseeable future.

6. Romania - Romanian Leu (RON)

With the goal of joining the Eurozone this year, Romania still has not fulfilled the convergence criteria. Not only that, the leu has not yet joined the Exchange Rate Mechanism II (ERM II), leaving the country a long way from being able to finally adopt the unified currency.

7. Sweden - Swedish Krona (SEK)

The 2003 referendum, in which the majority of the public voted against adoption, became the major key to why Sweden does not use the euro. Despite meeting most of the EU’s convergence criteria, Sweden has avoided joining the European Exchange Rate Mechanism (ERM II), which is a prerequisite for euro adoption. The country values its monetary independence and believes that keeping the Swedish krona allows greater flexibility in managing its economy. 

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