Montenegro and the euro

[6] After the crash of the common market and simultaneous outbreaks of war in two former Yugoslav republics, the monthly inflation rate in Serbia and Montenegro was 50% in February 1992, reaching 100% in June the same year.

Four European microstates (Andorra, Monaco, San Marino, and Vatican City)[b][16] which use the euro as their currency also have the right to mint coins with their own designs on the obverse side.

[17] When Montenegro started using the euro as a national currency, the European Central Bank (ECB) initially did not object to this step.

"[19] Also in the Declaration attached to the Stabilisation and Association Agreement with the EU is written that: "unilateral introduction of the euro is not compatible with the Treaty."

[21] The use was eventually acknowledged by the European Commission through a specific approach, which took into consideration that euroisation happened due to “extraordinary circumstances” present in the country when the euro was introduced.

[18] In 2013 Radoje Zugi, the finance minister of Montenegro, stated "it would be economically irrational to return to a currency of your own, only to be back in the euro later".

In 2007 Montenegro signed a Stabilization and Association Agreement with the European Union,[26] then submitted its application for membership in December 2008 and finally obtained the status of official candidate in 2010.

These conditions (convergence criteria) are set out in Article 140 (1) of the Treaty on the Functioning of the European Union in order to ensure that a certain country is ready for integration into the monetary regime of the euro area.

The Maastricht Treaty provides that all members of the European Union will eventually join the euro area, once the convergence criteria have been met.