currencyEUR

The euro (currency code EUR, symbol €) is the official currency of the euro area, a monetary union comprising 20 of the European Union’s 27 member states that have adopted it. It is one of the world’s leading currencies, widely used in international trade and finance and serving as a major unit of account and store of value in Europe.

The euro was introduced for cashless transactions in 1999 and entered into physical circulation as coins and banknotes on January 1, 2002. The European Central Bank (ECB) leads the Eurosystem, which includes the national central banks of the euro-area countries. The ECB’s primary mandate is price stability, with an inflation aim of below, but close to, 2% over the medium term.

Banknotes are issued by the ECB and coins are minted by the national authorities. Common denominations include banknotes of 5, 10, 20, 50, 100, 200 and 500 euros, and coins in 1, 2, 5, 10, 20 and 50 cents, plus 1 and 2 euros. The currency incorporates sophisticated security features to deter counterfeiting and to facilitate authentication.

The euro is the legal tender within the euro area. In other EU member states, the national currency remains legal tender until a policy or transition decision changes that status. Outside the EU, several countries and territories use the euro by formal agreement (such as Andorra, Monaco, San Marino, and Vatican City) or unilaterally (for example Kosovo and Montenegro), or in practice as a de facto currency.

Economically, the euro supports price transparency and reduces transaction costs across member states, enhancing cross-border commerce. Its governance framework ties together monetary policy with broader economic coordination, while debates continue about fiscal discipline, debt sustainability, and the suitability of a unified monetary policy for diverse economies.