All eu members are part of the economic and monetary union (EMU) and co-ordinate their economic decisions to support the eu’s economic goals. But some members have taken further steps to replace their currencies with the single currency, the euro. These members form the eurozone.
When the euro was first introduced in 1999 – as a “paper” capital – the eurozone was made up of 11 of the 15 eu member states. Greece in 2001, a year before the cash conversion, followed by Slovenia in 2007, the year 2008 is Cyprus and Malta, Slovakia, 2009 2014 is Latvia, Estonia, 2011 2015 is Lithuania. Today, the euro area is 19 eu member states.
Outside the euro zone, Denmark and Britain have joined the “exit” provisions of the treaty annexed to the treaty, although they can join the future if they wish. Sweden has yet to qualify as part of the euro zone.
The rest of the non-euro members were among the countries that joined the European Union in 2004, 2007 and 2013, after the euro was launched. When they joined, they did not meet the necessary conditions for entry into the euro zone, but they promised to join them when they met – they were “ke minus” member countries, such as Sweden.
Andorra, Monaco, SAN marino and Vatican city use the euro as their national currency with a specific currency agreement with the European Union, and may issue their own euro COINS within limits. But since they are not members of the eu, they do not belong to the eurozone.
Managing the eurozone
By adopting the euro, the economies of eurozone members have become more integrated. This economic integration must be properly managed to achieve the full benefit of the single currency. Thus, the economic management of the eurozone is also different from the rest of the eu, especially monetary and economic decisions.
Monetary policy in the euro area is in by the European central bank (ECB) and the European central bank (ECB) in Frankfurt, Germany and the eurozone member countries of the central bank independence in the euro system. Through its council, the European central bank has identified the monetary policy of the whole of the euro zone – the single monetary policy of a single monetary policy and the main objective of maintaining price stability.
In the eurozone, economic policy remains largely the responsibility of member states, but governments must coordinate their economic policies to achieve the common goal of stability, growth and employment. Coordination is achieved through a number of structures and means, and the stability and growth pact (SGP) is a central issue. The SGP contains the terms of the fiscal discipline rules, such as limited government deficits and the national debt, all eu members must abide by the rules, although only eurozone countries sanctioned (financial or otherwise) to observe the affair.
The implementation of eu economic governance is organized every year in a cycle called the European semester.