Two or more countries that agree to use the same currency instead of the fixed exchange rate system, or pegged exchange rate system. There are two main distinctions to a currency union: surrendered or shared. The first is simple adoption of a foreign currency in place of the current national currency. The adopting country loses control of all aspects of monetary policy, but for small countries this may be more of a relief than a burden. The second is much more of a partnership where participating countries share authority over monetary policy. This partnership can be extended into the political aspect as well, i.e. the European Union.