Paper Money Book
European Union flag
Official name: European Union
European Union uses euro since 1 January 2002
1 euro = 100 cents ; ISO code = EUR 978

2. THE EUROZONE

The eurozone, officially called the euro area, is a monetary union of 20 of the 27 European Union (EU) member states which have adopted the euro (€) as their common currency and sole legal tender. The monetary authority of the eurozone is the Eurosystem. The other nine members of the European Union continue to use their own national currencies, although most of them are obliged to adopt the euro in the future.

The ECB, which is governed by a president and a board of the heads of national central banks, sets the monetary policy of the zone. The principal task of the ECB is to keep inflation under control. Though there is no common representation, governance or fiscal policy for the currency union, some co-operation does take place through the Eurogroup, which makes political decisions regarding the eurozone and the euro. The Eurogroup is composed of the finance ministers of eurozone states, but in emergencies, national leaders also form the Eurogroup.

Since the financial crisis of 2007–08, the eurozone has established and used provisions for granting emergency loans to member states in return for enacting economic reforms. The eurozone has also enacted some limited fiscal integration, for example in peer review of each other’s national budgets. The issue is political and in a state of flux in terms of what further provisions will be agreed for eurozone change.

EUROZONE

  • 1998
Austria flag
Austria
Belguim flag
Belgium
Finland flag
Finland
France flag
France
Germany flag
Germany
Ireland flag
Ireland
Italy flag
Italy
Luxembourg flag
Luxembourg
Netherlands flag
Netherlands
Portugal flag
Portugal
Spain flag
Spain
Greece flag
Greece (2000)
Slovenia flag
Slovenia (2007)
Cyprus flag
Cyprus (2008)
Malta flag
Malta (2008)
Slovakia flag
Slovakia (2009)
Estonia flag
Estonia (2011)
Latvia flag
Latvia (2014)
Lithuania flag
Lithuania (2015)
Croatia flag
Croatia (2023)

ERM (Exchange Rate Mechanism) II

The danish krone was left at that time as the only participant member.

Denmark flag
Denmark

APPLIED FOR ERM II

ERM II by July 2020, Euro by 1 January 2024

Bulgaria flag
Bulgaria

OTHER EU MEMBER

Not in ERM II, but obliged to join the eurozone on meeting convergence criteria.

Czech Republic flag
Czech Republic
Hungary flag
Hungary
Poland flag
Poland
Romania flag
Romania
Sweden flag
Sweden

Since 31 of January of 2020 the United Kingdom is not anymore a EU member (Brexit).

United Kingdom flag
United Kingdom
MONETARY AGREEMENT

The euro is also used in countries outside the EU, four states:

In 01.01.2002 with issuing rights in 01.07.2013.

Andorra flag
Andorra

In 01.01.1999 with issuing rights in 01.01.2002 — had signed formal agreements with the EU to use the euro and issue their own coins. Nevertheless, they are not considered part of the eurozone by the ECB and do not have a seat in the ECB or Euro Group.

Monaco flag
Monaco
San Marino flag
San Marino
Vatican flag
Vatican City

UNILATERALLY ADOPTED

Officially adopted in 01.01.2002 the euro as their sole currency without an agreement and, therefore, have no issuing rights. These states are not considered part of the eurozone by the ECB. However, sometimes the term eurozone is applied to all territories that have adopted the euro as their sole currency.

Kosovo flag
Kosovo
Montenegro flag
Montenegro

Dependent territories of EU member states — outside EU

Five of the dependent territories of EU member states not part of the EU, have adopted the euro:

  • Akrotiri and Dhekelia (British territory, with Cyprus ensuring eurozone laws are implemented, adopted 2008-01-01, replacing cypriot pound)

  • Collectivity of Saint Martin (French territory, with France ensuring eurozone laws are implemented)

  • Territorial collectivity of Saint Barthélemy (French territory, with France ensuring eurozone laws are implemented)

  • Overseas Collectivity of Saint-Pierre and Miquelon (French territory, with France ensuring eurozone laws are implemented)

  • French Southern and Antarctic Lands (French territory, with France ensuring eurozone laws are implemented)