EU Finance Ministers Plan to Discuss Enhancing the Use of the Euro in Transactions to Strengthen Its Global Position

Eurozone finance ministers will discuss options to promote the use of the euro in issuance and trading, as part of the bloc’s efforts to enhance the euro’s global role and demonstrate European financial independence.

According to documents prepared by the European Commission for the finance ministers’ meeting, “It is necessary to reopen dialogue with key industry players in sectors such as energy, critical raw materials, aviation, and defense, to reassess the potential for greater use of the euro in invoicing, quoting, public procurement processes, and payment preferences.”

EU policymakers have repeatedly called for Europe to expand the international role of the euro in order to reduce reliance on the US dollar. Increasing the share of transactions conducted in euros is also seen as a way to mitigate the impact of currency fluctuations.

President of the European Central Bank, Christine Lagarde, stated in the autumn that “greater use of the euro in trade settlements will help lower transaction costs for exporters and shield eurozone prices from exchange rate fluctuations.”

In terms of trade pricing, the European Commission document seen by Bloomberg stated that the EU should focus on its largest energy exporting countries. The document also emphasized the importance of cooperating with third countries and companies to encourage sovereign and corporate issuers to issue euro-denominated debt.

EU leaders will meet on Thursday to discuss ways to reduce vulnerabilities in key sectors and to enhance autonomy by lowering national barriers within the single market, including in the financial services sector.

People familiar with the matter told Bloomberg last week that French President Emmanuel Macron plans to raise the issue of the euro’s strength against the US dollar at this meeting, as one of several topics aimed at boosting the economy and reducing vulnerabilities.

Editor: Li Tong