EU Economy and Finance
The European Union’s economic governance framework aims to detect, prevent, and correct problematic economic trends such as excessive government deficits or public debt levels, which can stunt growth and put economies at risk. The euro is the single currency shared by 19 of the European Union's Member States, which together make up the euro area.
The introduction of the euro in 1999 was a major step in European integration. It has also been one of its major successes: more than 337.5 million EU citizens in 19 countries now use it as their currency and enjoy its benefits.
The euro is not the currency of all EU Member States. Two countries (Denmark and the United Kingdom) have ‘opt-out’ clauses in the Treaty exempting them from participation, while the remainder (several of the more recently acceded EU members plus Sweden) have yet to meet the conditions for adopting the single currency. See the timeline below to have a glimpse of the historical evolution of the euro area since 1999.
All EU Member States form part of EMU, which can be described as an advanced stage of economic integration based on a single market. It involves close co-ordination of economic and fiscal policies and, for those countries fulfilling certain conditions, a single monetary policy and a single currency – the euro. The process of economic and monetary integration in the EU parallels the history of the Union itself.
When the EU was founded in 1957, the Member States concentrated on building a 'common market'. However, over time it became clear that closer economic and monetary co-operation was necessary for the internal market to develop and flourish further. The goal of achieving the EMU, including a single currency, was not enshrined until the 1992 Maastricht Treaty (Treaty on European Union), which set out the ground rules for its introduction.
These state what the objectives of EMU are, who is responsible for what, and what conditions Member States must meet in order to adopt the euro. These conditions are known as the 'convergence criteria' (or 'Maastricht criteria'). These criteria include low and stable inflation, exchange rate stability and sound public finances.
From the deepest economic crisis the world economy has seen since the great depression, Europe is emerging with new common institutions and a greater commitment to shared responsibility and solidarity.
Understand why the crisis happened and how Europe responded: European Economy Explained (available in 23 languages).
The introduction of the euro in 1999 was a major step in European integration. It has also been one of its major successes: more than 337.5 million EU citizens in 19 countries now use it as their currency and enjoy its benefits.
The euro is not the currency of all EU Member States. Two countries (Denmark and the United Kingdom) have ‘opt-out’ clauses in the Treaty exempting them from participation, while the remainder (several of the more recently acceded EU members plus Sweden) have yet to meet the conditions for adopting the single currency. See the timeline below to have a glimpse of the historical evolution of the euro area since 1999.
All EU Member States form part of EMU, which can be described as an advanced stage of economic integration based on a single market. It involves close co-ordination of economic and fiscal policies and, for those countries fulfilling certain conditions, a single monetary policy and a single currency – the euro. The process of economic and monetary integration in the EU parallels the history of the Union itself.
When the EU was founded in 1957, the Member States concentrated on building a 'common market'. However, over time it became clear that closer economic and monetary co-operation was necessary for the internal market to develop and flourish further. The goal of achieving the EMU, including a single currency, was not enshrined until the 1992 Maastricht Treaty (Treaty on European Union), which set out the ground rules for its introduction.
These state what the objectives of EMU are, who is responsible for what, and what conditions Member States must meet in order to adopt the euro. These conditions are known as the 'convergence criteria' (or 'Maastricht criteria'). These criteria include low and stable inflation, exchange rate stability and sound public finances.
From the deepest economic crisis the world economy has seen since the great depression, Europe is emerging with new common institutions and a greater commitment to shared responsibility and solidarity.
Understand why the crisis happened and how Europe responded: European Economy Explained (available in 23 languages).
