Adoption of the euro in Estonia
From Wikipedia, the free encyclopedia
Estonia officially adopted the euro on January 1, 2011, becoming the 17th country in the eurozone and the first Baltic state to join. When Estonia joined the European Union in 2004 it committed to join the eurozone and replace its currency, the kroon, with the euro. The fixed conversion rate was set at 15.6466 Estonian kroons to one euro.[4] The changeover helped boost trade and economic stability. Between 1 January and 14 January 2011, the kroon circulated together with the euro, after which the euro became the sole legal tender in Estonia.[5][6]
_-_centered.png)
Euro banknotes - all denominations | |
| Date | 1 January 2011 (introduction) – 14 January 2011 (complete transition).[1] |
|---|---|
| Location | |
| Type | Economic transition |
| Theme | Adoption of the euro as the national currency |
| Participants | Government of Estonia, European Union[2] |
| Outcome | Replacement of the Estonian kroon with the euro[3] |
- European Union member states (special territories not shown)
-
5 not in ERM II, but committed to join the eurozone after meeting the convergence criteria (Czech Republic, Hungary, Poland, Romania, and Sweden)
- Non–EU member states
History
When it joined the EU in 2004, Estonia committed to switching its currency, the kroon, to the euro, as stated in the 2003 EU accession treaty. The transition would occur once the country meets all the euro convergence criteria. The European Central Bank (ECB) and the European Commission prepared their respective Convergence Reports in 2010 and based on the result of that report on 12 May 2010 the European Commission concluded that Estonia had fulfilled the necessary conditions for the adoption of the single currency. Therefore, The European Commission confirmed Estonia met all convergence criteria. On 13 July 2010 the EU Council adopted a decision allowing Estonia to adopt the euro as its currency from 1 January 2011.[7] On 13 July 2010 the EU Council also adopted a regulation fixing the irrevocable conversion rate between the Estonian kroon and the euro. This conversion rate is set at 15.6466 kroons to one euro, which corresponds to the central rate agreed on 28 June 2004, when the Estonian currency entered the Exchange Rate Mechanism II (ERM II). [8] After adoption of the euro the Estonian government allowed a dual circulation period from January 1 to January 14 2011, allowing both the Estonian kroon and the euro to be used as legal tender and after January 14 2011 the euro became the sole official currency in Estonia.[9][10]