Bulgaria officially approved to adopt the euro, becoming the 21st member of the single currency area.

• Bulgaria will officially replace its national currency, the lev, with the euro. The fixed conversion rate is set at 1.95583 lev per euro.

About Eurozone

• The eurozone is the economic and geographic area made up of European Union (EU) countries that use the euro as their official currency.
• Its foundation was laid by the Maastricht Treaty in 1992, which established the EU and set the stage for a unified economic and monetary union. 
  • This included the creation of a central banking system, a shared currency, and an integrated economic region.
• EU countries wishing to join the eurozone must meet specific criteria related to price stability, fiscal responsibility, sustainable economic convergence, and exchange rate stability.
• Not all European Union nations participate in the eurozone; some opt to use their own currency and maintain their financial independence

Institutions Governing the Eurozone

• European Central Bank (ECB): Main authority managing the euro. It sets monetary policy, controls inflation, and ensures financial stability across the Eurozone.
• Eurogroup: Composed of finance ministers from Eurozone countries, it coordinates economic policies, discusses budgetary matters, and oversees economic governance.
• European Commission: Monitors member states’ compliance with fiscal rules (e.g., debt and deficit limits) and proposes corrective actions if necessary.

Expansion of the Eurozone

• When the euro was launched in 2002, it was adopted by 12 countries. 
• Over time, additional nations have joined: Slovenia (2007), Cyprus and Malta (2008), Slovakia (2009), Estonia (2011), Latvia (2014), Lithuania (2015), Croatia (2023)

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