Overview
The Euro (EUR, symbol: €) is the official currency of the Eurozone, which includes 20 of the 27 European Union (EU) member states. It is the second most traded currency in the world, after the US Dollar, and a major global reserve currency. Introduced to foster economic integration, the Euro has become a symbol of European unity.
**History**
The Euro was established by the provisions in the Maastricht Treaty of 1992. It was introduced to world financial markets as an accounting currency on January 1, 1999, and physical banknotes and coins entered circulation on January 1, 2002. It replaced the former national currencies of Eurozone members, such as the German Deutsche Mark and French Franc.
**Eurozone Members**
As of 2024, 20 EU countries use the Euro: Austria, Belgium, Croatia, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain. Non-EU microstates like Andorra, Monaco, San Marino, and Vatican City also use the Euro through agreements.
**Central Bank**
The European Central Bank (ECB), headquartered in Frankfurt, Germany, is responsible for monetary policy across the Eurozone. It aims to maintain price stability and manage inflation while supporting general economic policies within the EU.
**Global Significance**
The Euro is widely used in international trade, investment, and reserve holdings. It represents around 20% of global foreign exchange reserves and plays a key role in the global financial system.
**Nicknames and Usage**
Colloquial terms for the Euro include "Yoyo" in Ireland, "Leru" in Spain, and "Ege" in Finland. It's widely accepted across Europe and in some countries outside the Eurozone, especially in regions with strong EU ties.
