Brussels: The euro, the official currency of 21 out of the 27 European Union (EU) member states, marks its 27th anniversary on New Year's Day. The currency, which officially came into effect on January 1, 1999, began to be used in daily transactions after a three-year transition period with the introduction of euro banknotes and coins on January 1, 2002, replacing the national currencies of member countries.
According to Anadolu Agency, the European Commission, the European Central Bank (ECB), and EU finance ministers have approved Bulgaria's adoption of the euro, making it the latest addition to the eurozone as of New Year's Day. Bulgaria, an EU member since 2007, joins a list of countries where the euro is the official currency, including Austria, Belgium, Croatia, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain.
The eurozone's monetary policy is managed by the Eurosystem, which consists of the ECB and the central banks of the member states. The ECB aims to ensure price stability within the eurozone, with a medium-term inflation target set at 2%. The bank plays a crucial role in supervising banks, monitoring the financial system, printing euro banknotes, and ensuring secure transactions using the euro, while also researching crypto assets.
The euro is utilized by over 350 million people across Europe, with banknotes available in denominations of 5, 10, 20, 50, 100, 200, and 500 euros, and coins ranging from 1 euro cent to 2 euros. In a move to combat terrorist financing and money laundering, the printing of 500-euro banknotes was discontinued in 2019, and these notes are no longer used in daily transactions.
Despite the widespread adoption of the euro, some EU member states, such as Denmark, Hungary, Poland, Romania, and Sweden, have yet to switch to the currency. Denmark, in particular, rejected the euro in a referendum, maintaining its local currency despite meeting the necessary economic criteria. These countries continue to control their economic and monetary policies independently.
The euro has experienced fluctuations since its launch, initially losing value against the US dollar but later reaching a record high in 2008. As of late December 2025, the euro had gained approximately 15% against the dollar, with the exchange rate hovering around 1.18.
Despite its usage as the second-most-used reserve currency after the US dollar, the eurozone faces significant challenges, particularly concerning public debt. The total public debt in the eurozone has reached $15.9 trillion, with the public debt-to-GDP ratio rising to 88.2% this year. Greece, Italy, and France are among the countries with the highest debt-to-GDP ratios, exceeding the EU's recommended threshold of 60%.
Efforts to reduce public debt have been hindered by the inability of EU countries to implement effective austerity measures, impacting the regional economy. As the euro celebrates its 27th anniversary, the currency continues to play a vital role in the global financial system, despite the economic challenges faced by the eurozone.