Eurozone facts for kids

Kids Encyclopedia Facts

The euro area, often called the eurozone, is a group of 21 countries within the European Union (EU). These countries have chosen to use the euro (symbol: €) as their main currency. This means the euro is the only legal money they use. By doing this, they follow shared economic rules to work together.

The 21 countries that are part of the eurozone are: Austria, Belgium, Bulgaria, Croatia, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain.

Some countries outside the EU also use the euro. For example, France and Germany have the largest economies in the eurozone. Their combined economic power makes up almost half of the eurozone's total.

The Eurosystem helps manage the money for the eurozone. The Eurogroup is a meeting of finance ministers who discuss money matters for these countries. The European Central Bank (ECB) sets the main interest rates and prints euro banknotes and coins.

Since the 2008 financial challenges, the eurozone countries have created ways to help each other with loans. They also work together on their national budgets. This shows how they are trying to make their shared economy stronger.

About half of the countries in geographical Europe are in the eurozone. Six EU countries still use their own money: the Czech Republic, Denmark, Hungary, Poland, Romania, and Sweden. All of these, except Denmark, are expected to adopt the euro once they meet certain economic conditions. No country has ever left the eurozone.

Quick facts for kids
Euro area
Governance
Austria Belgium Croatia Cyprus Finland Estonia France Greece Germany Ireland Italy Latvia Lithuania Lux. Malta Netherlands Portugal Slovakia Slovenia Spain Andorra Monaco San Marino Vatican Kos Mont. Eurozone members (20) Monetary agreement (4) Unilaterally adopted (2)
Policy of	European Union
Type	Monetary union
Currency	Euro
Established	1 January 1999
Member states	21 Austria Belgium Bulgaria Croatia Cyprus Estonia Finland France Germany Greece Ireland Italy Latvia Lithuania Luxembourg Malta Netherlands Portugal Slovakia Slovenia Spain Further usage
Monetary authority	Eurosystem
Political oversight	Eurogroup
Statistics
Area	2,801,552 km² (1,081,685 sq mi)
Population	358,079,988 (1 January 2026)
Density	125/km² (323.7/sq mi)
GDP (nominal)	€15.231 trillion €43,400 (per capita) (2024)
Interest rate	2.5%
Inflation	2.4% (February 2025)
Unemployment	6.2% (January 2025)
Trade balance	€310 billion trade surplus

Understanding the Euro Area
How the Euro Area is Managed
The Euro Area Economy
Helping Each Other in Tough Times
See also

Understanding the Euro Area

How the Eurozone Started

Press conference at the Council of the EU for the launching of the Euro in 1998

The eurozone officially began on January 1, 1999. At that time, eleven countries from the European Union met the requirements to use the euro. These first countries were: Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal, and Spain. Greece joined them on January 1, 2001.

On January 1, 2002, these twelve founding members started using physical euro banknotes and euro coins. After a short time, their old national currencies were no longer valid.

Between 2007 and 2026, nine more countries joined the eurozone. These include Bulgaria, Croatia, Cyprus, Estonia, Latvia, Lithuania, Malta, Slovakia, and Slovenia.

Countries Using the Euro

Here is a list of the countries that use the euro and when they joined:

Austria (1999)
Belgium (1999)
Bulgaria (2026)
Croatia (2023)
Cyprus (2008)
Estonia (2011)
Finland (1999)
France (1999)
Germany (1999)
Greece (2001)
Ireland (1999)
Italy (1999)
Latvia (2014)
Lithuania (2015)
Luxembourg (1999)
Malta (2008)
Netherlands (1999)
Portugal (1999)
Slovakia (2009)
Slovenia (2007)
Spain (1999)

Other Places Using the Euro

Some small countries and territories outside the main EU also use the euro.

Countries with formal agreements: Andorra, Monaco, San Marino, and Vatican City have special agreements with the EU to use the euro. They even make their own euro coins! However, they are not officially part of the eurozone and don't have a say in the European Central Bank.
British Territories: Akrotiri and Dhekelia, which are British territories on the island of Cyprus, also use the euro.
Countries without formal agreements: Kosovo and Montenegro started using the euro on their own, without a special agreement. This means they can't print their own euro coins or banknotes.

Some other currencies are also linked to the euro. For example, the Bosnia and Herzegovina convertible mark and the Bulgarian lev have fixed exchange rates with the euro.

Why Some EU Countries Don't Use the Euro Yet

Six EU countries are not yet part of the eurozone: the Czech Republic, Denmark, Hungary, Poland, Romania, and Sweden.

Denmark has a special agreement that allows it to choose whether or not to join the euro.
The other five countries have promised to adopt the euro once their economies meet certain conditions. These conditions include keeping their exchange rates stable for at least two years.
Sweden held a public vote in 2003 and decided not to adopt the euro. Since then, they have chosen not to meet the requirements needed to join.

Leaving the eurozone is not something the EU rules easily allow. The idea is that once a country joins, it's a permanent decision. However, there have been discussions about what would happen if a country wanted to leave or if it needed to be asked to leave.

How the Euro Area is Managed

The European Central Bank (seat in Frankfurt depicted) is the central bank for the eurozone.

The European Central Bank (ECB) is like the central bank for all eurozone countries. It makes decisions about money, such as setting interest rates. The ECB also decides how many euro banknotes and coins should be made. The current President of the ECB is Christine Lagarde.

The finance ministers from all eurozone countries meet regularly in a group called the Eurogroup. They talk about important money matters and how to keep the eurozone economy stable. The current president of the Eurogroup is Paschal Donohoe.

Sometimes, the leaders of the eurozone countries (like presidents and prime ministers) also meet at a Euro summit. These meetings are important for making big decisions about the future of the eurozone.

The Euro Area Economy

Countries with economy larger than the eurozone

The eurozone is a very large economy when all its member countries are combined. It's one of the biggest economies in the world.

Economic Comparison

Comparing the Eurozone with other major economies
	Population (2024)	GDP (Local currency) (2024)	GDP (US$) (2024)
China	1408 million	CNY 134.908 trillion	US$ 18.943 trillion
Eurozone	350 million	EUR 15.231 trillion	US$ 16.483 trillion
United States	340 million	USD 29.184 trillion	US$ 29.184 trillion

Comparison with economies of individual sovereign countries
Economy	Nominal GDP (billions in USD) – Peak year as of 2025
(01) United States (Peak in 2025)	30,616
(02) China (Peak in 2025)	19,399
(03) Eurozone (Peak in 2025)	17,749
(04) Japan (Peak in 2012)	6,272
(05) India (Peak in 2025)	4,125
(06) United Kingdom (Peak in 2025)	3,959
(07) Brazil (Peak in 2011)	2,614
(08) Russia (Peak in 2025)	2,541
(09) Canada (Peak in 2025)	2,284
(10) Korea (Peak in 2021)	1,942
(11) Mexico (Peak in 2025)	1,863
(12) Australia (Peak in 2025)	1,830
(13) Turkey (Peak in 2025)	1,565
(14) Indonesia (Peak in 2025)	1,443
(15) Saudi Arabia (Peak in 2025)	1,269
(16) Poland (Peak in 2025)	1,040
(17) Switzerland (Peak in 2025)	1,003
(18) Taiwan (Peak in 2025)	884
(19) Argentina (Peak in 2025)	683
(20) Sweden (Peak in 2025)	662
The 20 current largest economies in the world including eurozone as a single entity, by nominal GDP (2025) at their peak level of GDP in billions US$. The values for EU members that are not eurozone members are listed separately.

Inflation in the Euro Area

Inflation is when prices for goods and services go up over time. The ECB works to keep inflation stable. Here are some inflation rates for the eurozone:

2000: 2.1%
2001: 2.3%
2002: 2.3%
2003: 2.1%
2004: 2.1%
2005: 2.2%
2006: 2.2%
2007: 2.1%
2008: 3.3%
2009: 0.3%
2010: 1.6%
2011: 2.7%
2012: 2.5%
2013: 1.4%
2014: 0.4%
2015: 0.2%
2016: 0.2%
2017: 1.5%
2018: 1.8%
2019: 1.2%
2020: 0.3%
2021: 2.6%
2022: 8.4%
2023: 5.4%
2024: 2.4%

Interest Rates

Interest rates are like the cost of borrowing money. The ECB sets these rates for the eurozone. When interest rates are low, it's cheaper to borrow money, which can encourage people and businesses to spend more. When rates are high, borrowing is more expensive.

Public Debt

Comparison of government surplus/deficit (2001–2012) of eurozone, United States and United Kingdom

Public debt is the money a government owes. Eurozone countries try to keep their public debt at a healthy level compared to their total economic output (GDP). One of the rules is to try not to exceed 60% of their GDP. This helps keep the eurozone stable.

Working Together on Budgets

Eurozone countries work together on their financial plans. They have rules, like the Stability and Growth Pact, that set limits on how much a country can spend more than it earns (its deficit). These rules help ensure that all countries manage their money responsibly. This cooperation helps keep the entire eurozone economy strong.

Helping Each Other in Tough Times

The 2008 financial challenges led to new ways for eurozone countries to support each other. They created special funds, like the European Stability Mechanism (ESM). This fund helps provide emergency loans to member countries that are facing economic difficulties. In return, these countries agree to make economic changes to improve their situation. This system shows how eurozone members work together to overcome financial challenges.