Serbia has the highest Euroisation index in South-Eastern Europe. Euro is heavily used in the domestic economy, because people lost trust in national currency. This bachelor thesis deals with monetary integration in Europe, conditions needed for accession to the Eurozone, as well benefits and costs of Euro area membership. On the base of the analysis with regards nominal and real convergence, the thesis tries to answer the question whether Serbia should consider Euro adoption as a solution for reaching long-term economic stability. After evaluation of monetary strategy, the recommendations are proposed.