EU says non-euro countries still not ready to adopt the single currency

The European Central Bank has said countries outside the euro area have made little progress in meeting the requirements to adopt the single currency. In its latest convergence report, the ECB noted that external economic shocks and worsening public finances have stalled progress. This means the remaining prospective members are still years away from joining the eurozone.

The ECB's biennial assessment found that compliance with the euro area's accession criteria has barely changed since the last report two years ago. The bank said progress towards meeting the convergence criteria has been held back by external shocks. Government finances have weakened across most candidate countries, with public debt levels rising significantly in several cases.

Under European Union rules, all EU countries are legally required to adopt the euro once they meet the necessary economic and legal conditions. However, there are exemptions for countries that delay accession. This allows governments to choose when or whether to actively pursue membership. Many countries have preferred to keep independent monetary policies, giving their central banks more flexibility to respond to domestic economic conditions.