EMU, the European Monetary Union, is an alliance of the 19 European states that belong to the European Union and have introduced a common currency with the euro. In the proper sense, the Union refers to itself as "European Economic and Monetary Union", i.e. as EMU.
The euro countries cover an area of 2.76 m km² in Europe and have a population of around 342.60 m. In terms of area, this corresponds to about 1.8% of the world's land mass and 4.5% of the world's population. With a money supply of around 12 trillion euros, the currency is one of the few leading currencies in the world. Only the Chinese yuan and the US dollar have a higher money supply.
All 19 EMU countries have adopted the euro as their currency union. Outside the EU, other countries have the Euro as their official currency. These in Europe are Andorra, Kosovo, Monaco, Montenegro, San Marino and the Vatican. In addition, some dependent territories of the EU states have adopted the euro, but some are neither EU nor EMU members. These are, for example, the Dutch and French overseas territories in the Caribbean, the Indian Ocean and the Pacific.
Common economic objectives
The common goal of the Union is the further development and stabilisation of the European internal market. One of the Union's primary objectives is to maintain the price level and currency stability of the euro. All states of the European Union participate in the economic union, but not in the monetary union. In other words, Bulgaria, Denmark, Croatia, Poland, Romania, Sweden, the Czech Republic, Hungary and the United Kingdom also participate. These countries are exempted from EMU, but do not yet have to complete the third stage of the introduction of the euro.
The basic prerequisite for admission to EMU is membership of the European Union. Even financially strong and stable countries outside the EU cannot therefore become Alliance members. In addition, strict conditions are imposed on the economy of a candidate country. For example, the inflation rate must not be lower than 1.5% of the most price stable EMU country. More than 60% of the country must not be indebted and the new debt must be less than 3%. It should be noted that these are admission criteria. If a member state no longer meets these criteria after admission, it does not automatically drop out. The question as to whether, for example, Greece could be excluded from EMU by force because it no longer fulfilled the admission criteria has so far remained unanswered.
Some of the above member states have other dependent outlying areas. These are not independent states, but they do have some economic and political autonomy. The treaties concluded by the EMU apply to them at least in part. However, these countries are not listed as official member states.