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Economy and Finance

The international role of the euro

The euro could develop further its global role, reflecting the euro area’s economic and financial weight, which would also make the international economy less vulnerable to shocks.

The euro is the currency of 21 EU countries, over 357 million EU citizens and the second most important currency in the world. It was launched on 1 January 1999. Euro notes and coins are tangible, everyday reminders of the freedom, convenience and opportunities that the European Union makes possible.

21.00
Member States
in the euro area
more than
357.00
million people
in euro area Member States use the euro every day
60.00
countries and territories
outside of the EU have pegged their currency directly or indirectly to the euro
175.00
million people
live in countries and territories which have pegged their currency to the euro

An increased international role for the euro is a tool to strengthen Europe’s influence in the world. It allows the European Union to better protect its citizens and businesses, uphold its values and promote its interests in shaping global affairs according to rule-based multilateralism. It improves the resilience of the international financial system, providing market operators across the globe with additional choice and making the international economy less vulnerable to shocks linked to the strong reliance of many sectors on a single currency. The euro should continue to facilitate and expand Europe's responsible trade agenda, allowing for European companies to trade all over the world to the benefit of Europe's economy without disruptions, while at the same time safeguarding the European social and regulatory model at home.

The euro and NextGenerationEU

The issuance of high-quality euro-denominated bonds under NextGenerationEU adds significant depth and liquidity to the EU's capital markets and makes them, and the euro, more attractive for investors. Promoting sustainable finance is also an opportunity to develop EU financial markets into a global ‘green finance' hub, bolstering the euro as the default currency for sustainable financial products. The EU is also pursuing the creation of a digital euro, which will support the international role of euro.

Deepening the Economic and Monetary Union

A stronger euro relies on a robust institutional set-up of the Economic and Monetary Union, as well as on a resilient EU banking system and liquid capital markets. Further Deepening the Economic and Monetary Union, (completing the Banking union and developing deep and liquid capital markets through the Capital markets union) are necessary to reinforce the international role of the euro.

Thus, the initiatives to enhance the international role of the euro complement actions that are planned and already being undertaken to deepen Europe’s Economic and Monetary Union.