eurozone

The eurozone, also known as the euro area, is the group of European Union member states that have adopted the euro as their legal tender and as the single currency for economic and monetary policy. It is the monetary union of the European Union's Economic and Monetary Union (EMU).

As of 2024, twenty countries use the euro: Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Portugal, Slovakia, Slovenia, Spain, and Croatia.

Monetary policy in the eurozone is conducted by the European Central Bank (ECB) and the Eurosystem, which comprises the ECB and the national central banks of euro area countries. The ECB's primary mandate is price stability, aiming to keep inflation at a rate close to 2 percent over the medium term.

Membership in the eurozone is linked to participation in the EU's Economic and Monetary Union and to meeting convergence criteria. Accession to the euro requires adopting the euro at an agreed date, subject to a commitment to maintain price stability, sound public finances, and exchange-rate stability, and is monitored by the institutions of the EU.

The eurozone faces challenges such as economic divergence among members and the coordination of fiscal policy. The EU employs rules such as the Stability and Growth Pact and mechanisms like the European Stability Mechanism to provide budgetary support during crises, while maintaining a common monetary policy.

Not all EU members are in the eurozone; Sweden has opted out, and several others have not yet adopted the euro. Some non-EU states also use the euro under formal agreements or de facto, but outside the eurozone.