The euro area consists of those Member States of the European Union that have adopted the euro as their currency. Today, around 330 million citizens in 18 countries live in the euro area, and this number will increase as future enlargements of the euro area continue to spread the benefits of the single currency more widely in the European Union.
All European Union Member States are part of Economic and Monetary Union (EMU) and coordinate their economic policy-making to support the economic aims of the EU. However, a number of Member States have taken a step further by replacing their national currencies with the single currency – the euro. These Member States form the euro area.
When the euro was first introduced in 1999 – as 'book' money –, the euro area was made up of 11 of the then 15 EU Member States. Greece joined in 2001, just one year before the cash changeover, followed by Slovenia in 2007, Cyprus and Malta in 2008, Slovakia in 2009, Estonia in 2011 and Latvia in 2014. Today, the euro area numbers 18 EU Member States.
Of the Member States outside the euro area, Denmark and the United Kingdom have 'opt-outs' from joining laid down in Protocols annexed to the Treaty, although they can join in the future if they so wish. Sweden has not yet qualified to be part of the euro area.
The remaining non-euro area Member States are among those which acceded to the Union in 2004 and 2007, after the euro was launched. At the time of their accession, they did not meet the necessary conditions for entry to the euro area, but have committed to joining as and when they meet them – they are Member States with a 'derogation', such as Sweden.
Andorra, Monaco, San Marino and the Vatican City have adopted the euro as their national currency by virtue of specific monetary agreements with the EU, and may issue their own euro coins within certain limits. However, as they are not EU Member States, they are not part of the euro area.
By adopting the euro, the economies of the euro-area members become more integrated. This economic integration must be managed properly to realise the full benefits of the single currency. Therefore, the euro area is also distinguished from other parts of the EU by its economic management – in particular, monetary and economic policy-making.
|Euro-area Member States||Non-euro area Member States||Member States with an opt-out|
|Germany||Czech Republic||United Kingdom|