1. The EU and the eurozone

2. EU  28 members  Free movement of G and S between the members  Free movement of labour and capital  Common external tariffs  Common external trade agreements  Common Agricultural Policy  Common Fisheries Policy  Many other common rules and regulations relating to work, industry, competition, finance and advertising.

3. Eurozone  18 members  Same currency (euro)  Same monetary policy (set by the EBC) with an inflation target of 2%  Fiscal compact treaty

4. What the eurozone doesn’t have…  Common fiscal policy  Tax harmonisation  Eurobonds – each member states issues its own bonds and pays separate yields.