Cipollone: Europe must act to boost euro's global role
ECB Executive Board member Piero Cipollone argues Europe must take deliberate action to strengthen the euro's international role. He states the global monetary system is increasingly contested, requiring proactive steps.
Euro's quiet ascent, solid foundations
The euro's international role has seen a gradual increase, with its composite measure rising by approximately 1.5 percentage points since the mid-2010s.
Its share in global reserves remains stable at around 20 percent.
Notably, international debt issued in euros reached a record high of nearly €1 trillion last year.
The currency also demonstrated safe-haven characteristics during several episodes in 2025, attracting investors seeking stability.
This progress is underpinned by Europe's structural strengths, including its status as the most open major economy, adherence to the rule of law, an independent central bank, and a robust fiscal framework.
Intentional European actions in green and sustainable finance have also yielded results, with the euro now leading the global green bond market.
Furthermore, instant payments are rapidly expanding, supported by EU legislation and the Eurosystem's pan-European fast payment system.
External shifts, internal response
The global monetary system is increasingly contested, with major economies actively shaping their currencies' roles.
China's renminbi now settles nearly a third of its external trade and accounts for 8 percent of global trade financing, surpassing the euro.
The United States is also making deliberate efforts to extend the dollar's digital reach through legislation on dollar-denominated stablecoins.
In response, the ECB is contributing within its remit by fostering macroeconomic and financial stability.
This includes expanding EUREP, its repo facility, to provide standing access to euro liquidity for central banks.
The ECB is also preparing to issue tokenised central bank money in September and developing a digital euro.
Choice, not circumstance
Europe's reliance on circumstance for the euro's international standing is no longer viable in a proactive global landscape.
The call for deliberate action underscores the urgency for EU legislators to implement structural reforms, such as a genuine single market and a savings and investments union.
Without these concrete steps, the euro risks losing ground to currencies backed by clear strategic intent, diminishing Europe's economic and geopolitical influence.