The international strength of the euro will grow

Significance

The proposals identified areas where the euro could potentially become more dominant, such as the issuance of green bonds, digital currencies, and international trade in raw materials and energy. Ambitions to enhance the international leverage of the euro are being driven by the aim to strengthen EU strategic autonomy amid rising geopolitical risks.

Impacts

• Developing its digital finance sector would be an opportunity for the EU to enhance its strategic autonomy in financial services.
• Challenging the US dollar would require the euro-area to rebalance its economy away from foreign to domestic demand.
• Member state division will prevent the economic reconfiguration the euro-area needed to make the euro a truly global currency.