The Faroe Islands currently use the Danish krone (DKK) as their local currency; however, the Sjalvstyrisflokkurin (Independence Party of the Faroe Islands) has applied for establishing the euro as the national currency. The application was sent to the Central Bank of the European Union on Wednesday.
Both major parties of the Faroe Islands, the Independence Party and the Republic Party (Tjodveldi), have come to an agreement to send in the application applying for the euro as the national currency. A public referendum has to take place on the possible changing of currency before the Faroese parliament, Logtingid, makes the final decision, according to Faroese news source Kringvarp Foroya.
See the full application and agreement issued by the Faroese parliament here, however the application is in Faroese.
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I think this will be interesting to see how it is received by the south european nations. I think by adopting the Euro currency it would spur an increase in tourism and accessibility.
@Michael Hannes:
The EU does not set bank commissions. However, there is an EU rule that says that banks cannot charge different fees for domestic payments and cash withdrawals and those in other eurozone countries.
Inflation: the euro caused some price rises at its introduction, but has contributed substantially to keeping prices down ever since.
The euro has greatly facilitated trade within Europe, thus contributing to economic growth.
The euro has prevented chaos on the european currency markets during the onset of the present economic crisis. If we had still had all those different currencies, some would have collapsed and others would have become grossly overvalued.
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“it’s a big mistake to avoid taking the euro, I give my exemple I live near strasbourg at the german border”…..
– unfortunately Iceland does not physically border another country…. so buying an airline ticket for foodshopping may not be so economical.
“…also when I pay with credit visa card… and taking money at atm in euros areas countries i have no comission.”
-hmm.. can’t banks determine whether they charge a fee or not? or does the EU own business decisions as well? i don’t pay USD commissions in iceland for visa, and for cash, well I dont mind paying $1 USD when I extract 25,000 ISK ($200 USD)
– and once again, plane ticket considerations …
“it’s true that prices went a lot but…”
– um, no comment necessary…
“euro is really super as I live near strasbourg and I go every week to do my shopping in germany.”
– sounds great for you! How is the summer over there in France/Germany? 30’s ? personally i’m missing the 15’s over there 1500km away in Iceland…
>”If an european country does not feel the European dream, if do only want the Euro, that country must not be an EU member.”
Do you know economicaly it benefit you as EURO zone member to have this currency circulate outside the country of the EURO zone.
LIke USD circulating outside United States.
You do realize it I hope ?
“Gudrun said:
Frenchmen seem to have problem speaking English… and beating Faroese football team!”
Did you have problems understanding him? His English was not perfect, but it was completely understandable and at least he made the effort to write in English. Can you write in French like he does in English? I assume not… Tu devrais tourner la langue sept fois dans ta bouche avant de parler, because that is so cheap to attack someone on their spelling!
“Faroes wont want that. They do not want EU. They want EURO only.”
If they do only want the Euro, they should not get it! NEVER!
EU is not only the Euro; an European man is something more! And, if they look for the Euro, they should never get it; same thing for Iceland.
If an european country does not feel the European dream, if do only want the Euro, that country must not be an EU member. ‘Richer’ countries than the EU average, or, … with certain particularitities or stereotypes, do not like the EU: Switzerland (heaven tax), Norway (oil), Iceland (natural resources), Liechtenstein (heaven tax), … . These countries must never join to the EU – now or later – if the ambition is only to get the Euro.
By the way, Denmark currency is the Euro, and its name is Krone: words of the Danish Premier!
Faroes feels the icelandic devil, does not like the icelandic hell and, does not wish a similar thing at home on next years, next crisis!! And, they do want the Euro; but, … if they do ONLY want the Euro, they must not get it. NEVER!
Fisy – The EU is working on an issue where smaller countries – those who are to small to become ordinary member – can be part of the EEA – like San Marino which use Euro.
>If they allow it for Faroes EU must allow it for Iceland too.
I dont think anyone would disagree with that. Except EU commission of course :)
> I live near strasbourg at the german border and I often go to make my foodshopping in germany, to have to euro it’s great
I think Danish will have Euro soon enough with current government . They already are in ERM2 so pegged currency to Euro.
But problem is not having EURO it is being inside EU will all associatd cost of implementing regulatiosns/Directives and restrictions on trade outside the EU customs union.
Faroes wont want that. They do not want EU. They want EURO only.
Frenchmen seem to have problem speaking English… and beating Faroese football team!
Hello,
I am from france, and I must to danish and iceland people, that it’s a big mistake to avoid taking the euro, I give my exemple I live near strasbourg at the german border and I often go to make my foodshopping in germany, to have to euro it’s great
I think that sweden, danemark has done a big mistake to refused the euro. when I See some very offensive
answers. and also when I pay with credit visa card
I have absolutely no commission and taking money at atm in euros areas countries i have no comission.
each one have their ideas and position, my position is to say the euros is great, it’s true
that prices went a lot but euro is really super
as I live near strasbourg and I go every week
to do my shopping in germany.
The linked PDF is not an application. It’s just a write-up of what the parliament (the Løgting) has had on the table a few days ago.
A basic outline of the document is as follows:
– trade and export neccesitates co-operation with the EU — which is where the Euro comes into the picture.
– countries not part of the EU use the Euro, suggesting the Faroes could, too.
– negotiations with the EU and the ECB is a goal of the parliament.
– the issue will be put to a public vote.
That is just the first four paragraphs. The rest of the document is just commentary and notes, elaborating on the topic.
Hi Martin,
The above article was translated from the Faroese television news.
The way I understand it, the two main parties have applied in their role as government and the outcome will then be decided by both the people and parliament.
Regards
Alex, editor
This is an ignorant article.
So in the Faroes political parties act on their own in these matters? Not the Faroese government (Landsstýrid)???
Is this a deliberate display of arrogance on IceNews’ part – or just stupidity?
Faroe Islands are cool but Iceland is the coolest.
The most direct precedent referred to in the Faeroese draft is that fact that the British-owned base areas of Akrotiri and Dhekelia on Cyprus adopted the Euro when the Republic of Cyprus did, despite the UK’s own opt-out. That was a case of a physically separate part of an EU state’s territory having a different choice on the Euro from its motherland – a close parallel to the Faeroes but pretty different from Iceland. (See Wikipedia: ‘On 1 January 2008 Akrotiri and Dhekelia adopted the euro along with the rest of Cyprus, despite not being part of the European Union. The Sovereign Base Areas are the only areas under British sovereignty to use the euro’.)
Andorra and Monaco used the french franc and spanish peseta, both of wich disapeared when euro was established, so it’s not really the same situation.
Don’t think it’ll happen, the Faroe Islands are not in the EU, and the danish national bank is not part of the EMU. Quite easy to take the tiny piece of cake you want without helping anyone to bake it… ;)
Also, other European non-EU members of similar size, such as Andorra and Monaco, have already succesfully applied for and were granted use of the euro.
Not really. The DKK is already pegged to the EUR, so adopting the Euro wouldn’t really change anything over there. In constrast, the ISK fluctuated wildly until recently, and an attempt to peg it to the Euro failed a few months back.
This will be interesting but is no big surprise.
What I’m more interesting in is what Greenland intends to do.
But be aware if EU agrees to allow Euro in Faroes ( which is not a part of the EU ) then Independence Party position on this in Iceland is strengthened — i.e. taking of Euro without EU membership.
If they allow it for Faroes EU must allow it for Iceland too.