The Euro-zone consists of the countries that use the Euro as their currency - The UK uses the £ Sterling and therefore is not in the Euro-zone - It's not really difficult to understand. I think even George Osbourn has got this far in his 'Ladybird book of Economics'
Well for international debt recognition purposes the UK is classified within a group called 'EU non-Euro area countries' and international debt for all those countries is measured in Euros, something I think George Osborne is very familiar with.
I suspect UK military are paid in the currency of the country they are stationed in so they get the same salary every week...same as they would in the UK. If they were paid in pounds they would have had a 7% plus pay cut in the last year.
They are paid in GBP and then use their own Forces Fixed Rate of exchange (FFR) to ensure a correct level of payment into their account so they do not loose money due to a strong or weak pound. They then receive a extra payment based on the living costs in that particualr country.
The issue for next month is if the MOD will ensure that those who have changed the system they are paid so any excess money they have is transferred to a UK account - ensuring that any direct debits they may have in Cyprus are still covered. (car loans etc)