In the context of the Eurosystem, a country that adopts the euro as its currency unit without consulting the ECB. Currently (beginning of 2012), Montenegro (a multi-ethnic Balkan state with a population of about 672,000) is the only country to do so; the DEM was made the country’s currency as early as 1999, and then switched to EUR in 2002. – However, some see the danger that other states could also unilaterally introduce the EUR. This would not have any immediate impact on inflation in the euro area, because without contractual membership in the euro area, the prices of such countries are not included in the Harmonized Index of Consumer Prices. Nevertheless, the euro would possibly suffer (image) damage worldwide. – See Montenegro issue.
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