eurózóna

The euro area, also known as the eurozone, is a monetary union of 20 member states of the European Union that have adopted the euro (€) as their primary currency and sole legal tender. The creation of the euro area was a significant step in European integration, aimed at fostering economic stability, facilitating trade, and strengthening the European Union's global economic influence.

The decision to adopt a common currency was made in stages. The euro was introduced as an accounting currency in 1999 and physically entered circulation in 2002, replacing the national currencies of participating countries. Membership in the euro area is voluntary but requires countries to meet certain economic criteria, known as the Maastricht criteria, which relate to inflation, government debt, budget deficit, exchange rate stability, and long-term interest rates.

The European Central Bank (ECB), located in Frankfurt, Germany, is responsible for setting monetary policy for the entire euro area. Its primary objective is to maintain price stability, meaning keeping inflation low and stable. National central banks of the member states form the Eurosystem, which works alongside the ECB. The euro area operates a single monetary policy but retains independent fiscal policies at the national level, although there are coordination mechanisms and rules in place to ensure macroeconomic stability across the union. The euro is the second-largest reserve currency and the second-most traded currency in the world.