Beyond the Euro: Which Currencies Do You Need in Europe?

When Americans head to Europe for the first time, we’re usually focused on Schengen.

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The Schengen Zone is a group of European countries that no longer have border control. US citizens heading into Europe without a visa have ninety days allotted in the Schengen Zone before their time is up.

Here’s where it gets a little tricky when it comes to currencies—

You’d think that every country in the Schengen Zone would also use the same currency as part of the European Union. In reality, those three factors (being in the EU, being part of Schengen, and using the euro) are distinct.

Not all EU countries are part of Schengen—and some Schengen Zones aren’t part of the EU—and some countries use the euro without being part of either.

If you’re going on a trip that involves crossing European borders, make sure you know what tender to use and in which countries. Just because a country is part of the European Union, it doesn’t mean they use the euro. Let’s dig in.

First up: the EU and the euro

The European Union is full of surprises—and the surprise that keeps on giving is currency. The euro is used by 26 countries around the continent; on top of that, there are another 23 currencies used locally. (You probably can name a few, from the British pound to the Swiss franc.)

So, what’s with all the crossed wires between currencies? And why would a country join the European Union and not the eurozone? (The eurozone = countries that run on the euro.)

Some countries in the European Union run on domestic currency because their current tender is weaker than the euro. Before a country can join the eurozone, they must be economically compatible. Officially speaking, they must meet the Exchange Rate Mechanism.

Poland and Hungary, for example, are part of the EU but use a local currency. (Hungary is preparing to switch over, in case any finance buffs want to follow that process live.)

To complicate things even more, some countries that aren’t in the EU still use the euro, including many micro-states like Andorra, Monaco, the Vatican, and San Marino.

What a crazy little continent. Now that I’ve jumbled your brain, let’s simplify things with a few lists.

Which countries use the euro?

If you’re heading to Western Europe, you’ll probably only need to use the euro. Currently, 20 out of the 27 European Union nations use the euro.

Countries that use the euro:

• Austria
• Belgium
• Croatia
• Cyprus
• Estonia
• Finland
• France
• Germany
• Greece
• Ireland
• Italy
• Latvia
• Lithuania
• Luxembourg
• Malta
• Netherlands
• Portugal
• Slovakia
• Slovenia
• Spain

Which countries in the EU use another currency?

Remember—just because a country is part of the European Union, that doesn’t mean they’re using the euro. As mentioned above, some countries need to improve their economic standing before joining the eurozone, such as Poland and Hungary.

On the other hand, some countries might have an economy that’s too strong to join the eurozone, as with Sweden. Additionally, they may want to maintain monetary independence from the European Union. Denmark, for example, uses both a local currency and the euro.

Keep a lookout for these countries that are part of the EU but don’t use the euro (just yet):

• Bulgaria (lev)
• Czech Republic (koruna)
• Denmark (krone—Denmark also uses the euro)
• Hungary (forint)
• Poland (złoty)
• Romania (leu)
• Sweden (krona)

Which non-EU countries use the euro?

Some countries in Europe aren’t part of the European Union but have still adopted the euro. These are the smallest nations on the continent—and even the world. Andorra, Monaco, San Marino, the Vatican, Kosovo, and Montenegro all accept the euro despite not being part of the European Union.

What other currencies should you know about in Europe?

Importantly, some countries that you would assume are part of the EU might not be. Norway and Switzerland have never joined the European Union. Famously, the UK exited the European Union a few years back.

Keep in mind that you can’t actually use euros in these popular countries:

• The UK uses the pound, including Northern Ireland
• Switzerland and Lichtenstein use the franc
• Norway uses the krone
• Iceland uses the krona