Eurozone - Financial definition
Concise definition of the term eurozone
The eurozone is a monetary union of European Union (EU) member countries that have adopted the euro (€) as their official currency.
Comprehensive definition of the term eurozone
The eurozone consists of 20 EU member countries that have replaced their national currencies with the euro, facilitating easier trade and economic integration within the region. Established in 1999, the eurozone is managed by the European Central Bank (ECB) and the Eurosystem, which work to maintain price stability and coordinate monetary policy.
Practical examples of its impact include the elimination of exchange rate risk among member countries and the creation of a large, single market, enhancing cross-border investments and economic cooperation. Market practices in the eurozone are influenced by the ECB's policies, which affect interest rates, inflation, and overall economic growth.