Eurozona

The Eurozone, also known as the euro area, is a monetary union of 20 member states of the European Union that have adopted the euro (€) as their primary currency. This currency serves as their legal tender, and the European Central Bank (ECB) in Frankfurt, Germany, oversees its monetary policy. The adoption of the euro is a significant step in European integration, aiming to facilitate trade, investment, and economic stability among member countries. Countries within the Eurozone share a common monetary policy, but fiscal policies, such as taxation and spending, remain largely independent at the national level. The euro was introduced as a non-physical currency in 1999 and as physical banknotes and coins in 2002. The criteria for joining the Eurozone, known as the Maastricht criteria, include price stability, sound public finances, exchange rate stability, and long-term interest rate convergence. While the Eurozone offers economic benefits, it also presents challenges related to economic disparities and the coordination of fiscal policies. The number of Eurozone members has expanded over time as more EU countries meet the convergence criteria and choose to adopt the euro.