Euro's international role strengthens to 20 percent
The euro's international role expanded slightly in 2025, solidifying its position as the world's second most important currency. Its share, measured by various indicators of international currency use, increased to around 20 percent.
Record issuance in green bonds
In 2025, the issuance of international debt securities in euro reached its highest level since the common currency's introduction, increasing by approximately 30 percent year-on-year.
The euro also became the leading currency in the international market for green and sustainable bonds for the first time.
Portfolio inflows from abroad into the euro area were close to their historical peaks.
This continued the gradual but steady upward trend observed since Russia's 2014 annexation of Crimea, reinforcing the euro's position as the world's second most important currency.
The report highlights the necessity of strengthening the foundations for the euro's global potential.
This includes fostering deeper and more liquid capital markets within the euro area, which are crucial for the euro to develop into a truly global international currency.
Concrete steps towards completing the Capital Markets Union and an ambitious timetable are essential.
Geopolitical headwinds and policy needs
Despite the euro's strengthened role, initial signs of fragility are emerging.
Ongoing geopolitical tensions have prompted central banks to increase gold holdings, while some countries develop alternative digital cross-border payment systems.
These trends highlight increasing fragmentation of the international monetary system.
ECB President Christine Lagarde stated this creates an opportunity for the euro to enhance its global appeal, provided European policymakers establish the necessary conditions.
She emphasized strengthening three pillars: economic resilience, legal and institutional integrity, and geopolitical credibility.
The ECB contributes by upholding its independence and price stability mandate, designing the euro for the digital payment era, and providing backstop liquidity via its EUREP facility for central banks worldwide.