What is the Eurozone? There are 3 ways to explain what the Eurozone is, the long and complicated answer, the overly simple answer and the medium answer.
The long and complicated answer as to what is the Eurozone is and how it works, would require hours upon hours of research and likely a PhD in finance or economics to have a fuller understanding of the Eurozone is.
The simple overly simple answer to what is the Eurozone is the monetary union of EU member countries that share the same currency, the Euro as their official currency. There is a European Central Bank in Germany which controls the money for all Eurozone members.
Then there is the medium answer. What most people would see and recognize as the current Euro currency and Eurozone first appeared January 1st, 2002 when 12 countries exchanged their local currency for the use of united currency, Euro. Yet, before the use of the Euro by the public in their day to day lives, it was an ‘invisible’ currency. The exclusive purpose and use for the Euro before January 1st 2002, was accounting and electronic payments. Currently, 19 out of 28 member states of the EU use the Euro as their official currency. They enjoy benefits of trading, purchasing goods and services, receiving payments and going on holidays to their fellow Eurozone states, without having to waste time and money on currency conversion. Simply put, you can live in Spain, work in Luxembourg, and go on holiday to Estonia without thinking about the currency.
Which Countries didn't adopt the Euro?
- Czech Republic
Once those countries met the necessary conditions they will join Eurozone.
The Eurozone has many layers of complexity, power structures and has its own set of problems and faces new challenges like any other institution. The Eurozone must adapt and combat to the challenges our world faces today and tomorrow.