Guadeloupe is an island group or archipelago located in the eastern Caribbean Sea. It is an overseas department of France. As with the other overseas departments, Guadeloupe is also one of the twenty-six regions of France (being an overseas region) and an integral part of the Republic. As part of France, Guadeloupe is part of the European Union; hence, as for most EU countries, its currency is the euro. However, Guadeloupe does not fall under the Schengen Agreement. The prefecture of Guadeloupe is Basse-Terre.