“In light of recent geopolitical events in our current geopolitical context, there are risks that the international financial and monetary system is being used as a political tool,” said Greek Finance Minister Kyriakos Pierrakakis, who chairs the meetings of his euro-area peers. “It is thus existential for us to safeguard the international role of the euro as it is quite pertinent for the EU’s monetary sovereignty.”
The comments come just after the European Central Bank introduced its strongest move yet to promote the euro. Over the weekend, the monetary-policy institution announced that it’s prepared to offer euro liquidity to central banks from around the world.
That proposal is one of the ideas included in a European Commission paper prepared ahead of the ministers’ meeting in Brussels on Monday.
The document, seen by Bloomberg, called for reinforcing euro diplomacy by reassuring partner countries about access to the common currency.
“With the United States potentially less inclined to supply dollar liquidity during periods of stress, offering euro-denominated liquidity to partner countries could serve as a valuable complement to the EU trading strategy and boost the international role of the euro,” the document said.
The document explored ways to promote the use of the euro in issuance and transactions, especially in key sectors such as the energy, critical raw materials, air transport and defence sectors.
“International investors want to diversify, they are looking for contact with Europe, that’s why we want to be a safe haven for the capital investments from the entire world,” said German Finance Minister Lars Klingbeil, who together with his French counterpart pushed for more rapid action.
“Faced with massive challenges across the world, the EU has to be stronger, the EU has to be faster, the EU has to work on its competitiveness and its ability to be powerful and independent,” Roland Lescure said. “Europe is very good at moving well – we also need to make it better at moving faster and this is what we’re going to do.”
Still, French officials want a deeper understanding of how such a move may harm exporters by driving up the euro against the dollar, a finance ministry official said, briefing journalists on condition of anonymity.