The topic of this final paper is the monetary policy of the European Union with an emphasis on the euro currency. The aim of the paper is to study the course of preparation for the economic and monetary union, and to analyze its costs and benefits. An important motive for creating an economic and monetary union is the creation of a new common currency that contributes to easier trading and exchange of goods, capital, and services on the market. Then, the purpose of the paper is to discuss the euro as a common currency, its origin and advantages and disadvantages with its introduction. The euro represents an important physical, tangible part of the European identity in banknotes and coins and gives the European Union a stronger voice in the global economy. The benefits and possible risks that member states realize with its introduction are presented. Today, the euro is used by 19 member states of the European Union, and together they form the euro area or eurozone. Furthermore, in the final paper, the importance is placed on the European Central Bank, which represents the key subject of the monetary policy of the European Union. The main task of the European Central Bank is to maintain price stability in the euro area. The Eurosystem is presented, which includes the European Central Bank and the national central banks of the member states of the European Union, whose purpose is to improve the economic perspective and the standard of living of citizens. In conclusion, the creation of a monetary union connects the economies of the member states and creates peace in the euro area. With the example of the same currency, it is easier and more efficient to do business on the market with all members of the euro area.