This group of states is officially known as the euro area or, more commonly, the eurozone. The euro is divided into euro cents. The currency is also used officially by the institutions of the European Union , by four European microstates that are not EU members, [ 7 ] the British Overseas Territory of Akrotiri and Dhekelia , as well as unilaterally by Montenegro and Kosovo.
Outside Europe, a number of special territories of EU members also use the euro as their currency. The euro is used by million people in Europe and additionally, over million people worldwide use currencies pegged to the euro.
The name euro was officially adopted on 16 December in Madrid. Physical euro coins and banknotes entered into circulation on 1 January , making it the day-to-day operating currency of its original members, and by March it had completely replaced the former currencies. On 13 July , the two currencies hit parity for the first time in nearly two decades due in part to the Russian invasion of Ukraine.
The euro is managed and administered by the European Central Bank and the Eurosystem , composed of the central banks of the eurozone countries. As an independent central bank, the ECB has sole authority to set monetary policy. The Eurosystem participates in the printing, minting and distribution of euro banknotes and coins in all member states, and the operation of the eurozone payment systems.
Through their ratification of the Maastricht Treaty or subsequent treaties of accession , most EU member states commited to adopt the euro upon meeting certain monetary and budgetary convergence criteria , although not all participating states have done so. Denmark has negotiated exemptions, [ 21 ] while Sweden which joined the EU in , after the Maastricht Treaty was signed turned down the euro in a non-binding referendum , and has circumvented its commitment to adopt the euro by not meeting the monetary and budgetary requirements.
