This paper analyses the impact of European Monetary Union on outside countries, with emphasis on countries of the Mediterranean Area (MED12). After discussing the possible “eurization” of bilateral trades between EMU countries and countries with close economic and geographical links; the possible “eurization” of existing debts, today denominated in dollars, and the closely connected increase of direct investment and private capital flows to the area, the paper argues that the advent of EMU is likely to have a positive, though small, effect on MED12. As a related issue, the paper also discusses the stability of the demand for euro and some possible implications of EMU for the international monetary system.