euroarea

Euroarea, or euro area, refers to the group of European Union member states that have adopted the euro as their common currency and share a single monetary policy administered by the European Central Bank (ECB). As of 2024, 20 EU countries use the euro: Austria, Belgium, Cyprus, Croatia, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain. The euro area is the monetary union that forms part of the broader European Union framework.

The European Central Bank, based in Frankfurt, sets monetary policy for the euro area and oversees price stability and financial stability within its jurisdiction. The national central banks of euro area members participate in the European System of Central Banks (ESCB). Economic and fiscal coordination among euro area countries is supported by the Eurogroup, the European Commission, and EU-wide rules such as the Stability and Growth Pact, along with mechanisms related to the Banking Union.

Joining the euro area requires meeting convergence criteria established in the Maastricht Treaty. These include price stability, sustainable public finances (deficits and debt within specified limits), exchange-rate stability, and convergence of long-term interest rates. In practice, potential members typically participate in the Exchange Rate Mechanism II (ERM II) for at least two years before adopting the euro, after which national legislation and ECB approval complete the process.

The euro is the common currency for payments, with euro banknotes and coins used across all member states. The euro area has advanced financial integration, supported by the Banking Union, which includes the Single Supervisory Mechanism (SSM) and the Single Resolution Mechanism (SRM) to strengthen financial stability. Non-euro EU members include Bulgaria, Czechia, Denmark, Hungary, Poland, Romania, and Sweden.