Market News
EU countries outside the euro not yet ready to adopt it, Commission says - REUTERS
FRANKFURT, June 24 (Reuters) — Countries outside the euro area have made little progress in meeting the requirements to adopt the single European currency, according to the European Central Bank's (ECB) latest convergence report.
The ECB said that external economic shocks and deteriorating public finances have stalled progress, leaving the remaining prospective members still years away from joining the eurozone.
Progress Has Stalled
In its biennial Convergence Report, the ECB concluded that compliance with the euro area's accession criteria has changed little since its previous assessment two years ago.
"Progress towards compliance with the convergence criteria has been held back by external shocks," the ECB said.
The report noted that government finances have weakened across most candidate countries since the 2024 Convergence Report, with public debt levels rising significantly in several cases.
Euro Adoption Remains a Legal Obligation
Under European Union rules, all EU member states except Denmark are legally required to adopt the euro once they satisfy the necessary economic and legal conditions.
However, there are no penalties for countries that delay accession, allowing governments to choose when—or whether—to actively pursue membership.
Many countries have preferred to retain independent monetary policies, giving their central banks greater flexibility to respond to domestic economic conditions.
