They continue to use their own national currencies, although all but Denmark are obliged to join once they meet the euro convergence criteria. The Eurosystem is the monetary authority of the eurozone, the Eurogroup is an informal body of finance ministers that makes fiscal policy for the currency union, and the European System of Central Banks is responsible for fiscal and monetary cooperation between eurozone and non-eurozone EU members.
The European Central Bank ECB makes monetary policy for the eurozone, sets its base interest rate , and issues euro banknotes and coins. Since the financial crisis of β , the eurozone has established and used provisions for granting emergency loans to member states in return for enacting economic reforms. The issue is political and in a state of flux in terms of what further provisions will be agreed for eurozone change.
No eurozone member state has left, and there are no provisions to do so or to be expelled. In , eleven member states of the European Union had met the euro convergence criteria , and the eurozone came into existence with the official launch of the euro alongside national currencies on 1 January in those countries: Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal, and Spain.
Greece qualified in and was admitted on 1 January These twelve founding members introduced physical euro banknotes and euro coins on 1 January After a short transition period, they took out of circulation and rendered invalid their pre-euro national coins and notes.
Three French dependent territories that are not part of the EU have adopted the euro, with France ensuring eurozone laws are implemented:. The euro is also used in countries outside the EU. Akrotiri and Dhekelia located on the island of Cyprus belong to the United Kingdom, but there are agreements between the United Kingdom and Cyprus [ citation needed ] and between United Kingdom and EU [ citation needed ] about their partial integration with Cyprus and partial adoption of Cypriot law, including the usage of euro in Akrotiri and Dhekelia.
