All EU countries - or almost all - have to join the Eurozone. But what are the rules of the common currency? Journey into the inner workings of the euro.

Inside the euro

https://api.multimedia.europarl.europa.eu/documents/20125/11883493/v003-0069-en.srt

Since January 2002, more than 300 million  Europeans have been using the euro

for all kinds of transactions.  But how does it work?

Firstly, who can be part of the Eurozone?

All EU Member States – except Denmark  and the UK who negotiated opt-outs –

have to adopt the single currency  and join the Eurozone.

Secondly, what criteria must be met  to enter the Eurozone?

There are four entry criteria,  a set of economic indicators

known as the convergence criteria  or the Maastricht criteria.

These were signed as part of the Treaty  on 7 February 1992.

The criteria include rules for inflation

and limits for public debt  and the public deficit,

for exchange rate stability  and interest rate convergence.

it is required to comply  with the Stability and Growth Pact

Member States' gross government debt  cannot exceed 60%

and the annual debt must be kept  to a maximum 3% of GDP.

Eurozone members must also  keep inflation under control.

When a Member State violates  the deficit or debt thresholds,

it may be subject  to an excessive deficit procedure.

If a country is placed in  the excessive deficit procedure, or EDP,

it has to comply with recommendations  made by the Council to correct the situation.

If the Member State then fails to comply,

the Council may impose financial sanctions  on the recommendation of the Commission.

if they are rejected by  a qualified majority of Member States.

A Eurozone country  that is newly placed in EDP

has to put down 0.2% of its GDP  as a deposit.

This acts as a guarantee  and will be taken as a fine

if the Member State does not then  take effective action

to comply with the initial recommendations  for the correction of its deficit.

Can a member leave the Eurozone  and go back to its national currency?

The European Treaties forbid Eurozone  countries being kicked out against their will.

However, there is no legal instrument  defining how a state can leave the euro

So who's in the driving seat  of the Eurozone?

It’s a body known as  the European Central Bank.

But the role of the ECB  is a whole other story.