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The euro

The euro is the most tangible proof of European integration – the common currency in 18 out of 28 EU countries and used by some 334 million people every day. The benefits of the common currency are immediately obvious to anyone travelling abroad or shopping online on websites based in another EU country.

EU monetary cooperation

The Economic and Monetary Union involves the coordination of economic and fiscal policies, a common monetary policy and the euro as the common currency. The euro was launched on 1 January 1999 as a virtual currency for cash-less payments and accounting purposes. Banknotes and coins were introduced on 1 January 2002.

Which countries use the euro?

The euro (€) is the official currency of 18 out of 28 EU member countries. These countries, known collectively as the Eurozone are:

Read more about EU member countries and the euro.

Over 175 million people worldwide use currencies which are pegged to the euro.

Purpose of the euro

A single currency offers many advantages, such as eliminating fluctuating exchange rates and exchange costs. Because it is easier for companies to conduct cross-border trade and the economy is more stable, the economy grows and consumers have more choice. A common currency also encourages people to travel and shop in other countries. At global level, the euro gives the EU more clout, as it is the second most important international currency after the US dollar.

Managing the euro

The independent European Central Bank is in charge of monetary issues in the EU. Its main goal is to maintain price stability. The ECB also sets a number of key interest rates for the euro area. Although taxes are still levied by EU countries and each country decides upon its own budget, national governments have devised common rules on public finances to be able to coordinate their activities for stability, growth and employment.

The Economic and Financial Crisis

The economic crisis has prompted intense and sustained action by the EU's national governments, the European Central Bank and the Commission since it erupted worldwide in 2008. All have been working closely together to support growth and employment, protect savings, maintain a flow of affordable credit for businesses and households, ensure financial stability, and put in place a better governance system for the future.