EUROZONE
COUNTRIES - INTERNATIONAL
News: Eurozone inflation falls to lowest
level since October 2021
What's
in the news?
●
The Eurozone's annual inflation rate
slowed down to 4.3% year-on-year in September and is the lowest level since
October 2021 and should bring slight relief to the millions of households still
grappling with high prices.
Eurozone:
●
Out of the 28 members of the European
Union (EU), only 20 have accepted the
euro (€) as their authorised currency and are collectively known as the
Euro zone.
●
The Euro is used as a common currency for
all the transactions in the Eurozone without any discrimination. These
transactions are related to online/offline shopping, flight ticket booking,
purchase of groceries etc.
Conditions
for Eurozone:
According to the
Mastricht treaty, if EU country wants to join the Eurozone, then it will have
to meet these 4 following conditions such as
1.
Low Inflation:
●
If a country wants to be in the Eurozone,
its inflation should not exceed 1.5% of the top three lowest inflation
countries of the Eurozone.
2.
Low Interest Rate:
●
Interest rates should not exceed 2% as
compared to the first three lowest interest rate countries.
3.
Lower Budget Deficit:
●
The annual budget deficit of the aspirant
country should not exceed 3% of the Gross Domestic Product of its economy.
4.
Debt-to-GDP ratio:
●
The debt of the aspirant country should
not exceed 60% of the Gross Domestic Product of its economy.
Eurozone
Countries:
●
Austria, Belgium, Croatia, Cyprus,
Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania,
Luxembourg, Malta, Netherlands, Portugal, Slovakia, Slovenia, and Spain.
Significance:
●
A single currency offers many advantages,
such as eliminating fluctuating exchange rates and exchange costs.
●
It is easier for companies to conduct
cross-border trade and the economy is more stable, the economy grows and
consumers have more choice in payment.
●
It also encourages people to travel and
shop in other countries.