The European Union (EU) fosters economic cooperation among its member states through the Economic and Monetary Union (EMU). A significant step in this integration is the adoption of a single currency, the euro. While all EU members participate in the EMU, not all have adopted the euro. This article will explore which countries use the euro today, forming what is known as the euro area, and examine the journey of the euro’s expansion.
Initially introduced in 1999 as electronic money, the euro began with 11 of the then 15 EU member states. This marked a pivotal moment in European economic history, streamlining trade and financial transactions among participating nations. The physical euro coins and banknotes were introduced in 2002, solidifying the currency’s presence in everyday life.
The euro area has expanded gradually over the years. Greece was the first to join after the initial group, adopting the euro in 2001, just before the cash changeover. Subsequently, a wave of new members joined: Slovenia in 2007, Cyprus and Malta in 2008, Slovakia in 2009, Estonia in 2011, Latvia in 2014, and Lithuania in 2015. The most recent country to adopt the euro is Croatia, which joined in 2023. Today Euro is the official currency in 20 EU member states, demonstrating the continued appeal and stability of the single currency.
Alt text: Assortment of Euro coins and banknotes, illustrating the physical form of the European single currency.
However, not all EU members are part of the euro area. Denmark negotiated an ‘opt-out’ clause, allowing it to remain outside the euro area unless it chooses to join in the future. Sweden, while committed to joining the euro, has not yet met the necessary economic criteria to qualify for adoption.
The remaining EU member states that are not in the euro area are primarily those that joined the Union in the enlargements of 2004, 2007, and 2013. Upon their accession, these countries committed to adopting the euro once they fulfill the convergence criteria. They are considered to have a ‘derogation,’ meaning they are expected to join the euro area when their economies are ready.
Beyond the EU, several microstates in Europe have also adopted the euro. Andorra, Monaco, San Marino, and Vatican City have adopted the euro as their official currency through monetary agreements with the EU. These states are permitted to issue their own euro coins within specified limits. Despite using the euro, they are not formally part of the euro area as they are not EU member states.
In conclusion, the euro area represents a significant integration of European economies. Today euro is used by 20 EU member states and several micro-states, facilitating economic activity and symbolizing European unity. While some EU members remain outside the euro area for various reasons, the euro continues to be a major global currency and a cornerstone of European economic cooperation.
