Eurozone

The eurozone ( pronunciation (help·info)), officially the euro area, is an economic and monetary union (EMU) of 17 European Union (EU) member states that have adopted the euro (€) as their common currency and sole legal tender. The eurozone currently consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain. Of the 10 EU member states outside the eurozone, seven states are obliged to join, once they fulfil the strict entrance requirements. Three EU member states have exceptions (that is, states not obligated to join the Zone), including Sweden, which has a de facto opt out; Denmark, which has an opt out that may be abolished in the future; and the United Kingdom, which also has an opt out provision.

Monetary policy of the zone is the responsibility of the European Central Bank, though there is no common representation, governance or fiscal policy for the currency union. Some co-operation does however take place through the euro group, which makes political decisions regarding the eurozone and the euro.

The eurozone can also be taken informally to include third countries that have adopted the euro, for example Montenegro (see details on these countries below). Three European microstates—Monaco, San Marino and the Vatican City—have concluded agreements with the European Union permitting them to use the euro as their official currency and mint coins, but they are neither formally part of the eurozone nor represented on the board of the European Central Bank.