Strengthening the global role of the Euro

European Strategic Autonomy series - Economy & Trade

Policy Brief


The talk about EU strategic autonomy has brought to light the role of Euro in advancing EU strategic interests. The shift from an economic view of the single currency towards seeing it as a strategic tool started several years ago, most notably in 2018 under Commission President Juncker. In the wake of the recent crises – the pandemic, the war, and now also inflation and monetary tightening – the issue has taken on a new urgency, as we are observing the politicisation of international economic relations as never before.

In this policy brief, Dr George Papaconstantinou explores motivations for strengthening the global role of the euro and suggests economic policies towards that end. 

The euro maintains a consistent and strong second place, after US dollar, but with a substantial variance in different fields. The policy brief reviews the main limiting factors for the wider use of the euro.  Apart from the built-in dollar bias of the Bretton Woods system, these include EU´s financial fragmentation (lack of liquidity and depth of financial markets), uncertain governance of the eurozone, still limited ability or willingness of the ECB to act internationally, to name the major ones. 

The policy brief suggests that strengthening the international role of the euro involves policy action on three fronts: 

  • Filling in the missing elements of the economic and monetary union: completing the banking union, creating a capital markets union, strengthening fiscal capacity for macroeconomic stabilisation, and creating a euro area safe asset.
  • Improving financial market infrastructure, in particular, by extending the use of swap lines to facilitate liquidity in euro.
  • Expanding the use of the euro in key strategic sectors: energy, commodities, and transport.

A dedicated and focused effort in these domains will make sure that the euro can support the broader European economic and security goals.

Fondation Jean-Jaurès
Find all related publications

Stronger resilience through cooperation in the Sahel

'12 years of crises in the Sahel' series

Beyond humanitarian aid: the EU’s approach to alleviating food crisis in the Sahel at a time of global insecurity

'12 years of crises in the Sahel' series

Forging Europe’s leadership

Global trends, Russian aggression and the risk of a regressive world

SDGs for all: Strategic scenarios

Earth4All system dynamics modelling of SDG progress
Find all related Progressive Post
Progressive Post

Despite the unprecedented Israeli-Palestinian crisis, new opportunities for peace emerge


Turkey in its region: security first and ‘Make Turkey Great Again’


Centennial celebrations in Turkey amidst polarisation

Find all related events
Helsinki, Finland (Hybrid)

From Russia’s aggression to progressive recovery of Ukraine

How to ensure Ukraine’s democratic future?
Vienna, Austria (Expert meeting)

Conflict, leadership and change: Europe’s response to Russian aggression and global shifts

'Forging Europe's Leadership' book launch

State of the Unions

Ties that bind: Testing the resilience of US-EU relations in an age of turbulence
Find all related news

Ann Linde is FEPS’ new Foreign Affairs Special Advisor


FEPS President at the SDG Summit and United Nations General Assembly in New York


Call for tender – Research and analysis for the project “Progressive paths to rebuild Ukraine”

This call for tender closed on 26/09/2023

President Lula da Silva meets with FEPS and Plataforma CIPÓ

The Brazilian President was present in Brussels in the context of the EU-CELAC Summit
Find all related in the media
In the media

Une réforme de l’UE qui intéressera forcément les Suisses

by Le Temps 24/11/2023
'EU reform bound to be of interest to the Swiss', an opinion piece in Le Temps on EU Treaties changes by Maria João Rodrigues, FEPS President, Guillaume Klossa, Director of think tank EuropaNova and Daniela Schwarzer, Executive board member Bertelsmann Stiftung

« Le moment est venu de lancer un débat sur la réforme de l’Union européenne »

by Le Monde 22/11/2023
'The time has come to launch a debate on the reform of the European Union', an opinion piece in Le Monde on Eu Treaties changes by Maria João Rodrigues, FEPS President, Guillaume Klossa, Director of think tank EuropaNova and Daniela Schwarzer, Executive board member Bertelsmann Stiftung

A Europa em tempo de guerras

by Público 06/11/2023
'Europe in times of wars'. With two wars unfolding in the European neighbourhood, FEPS President, Maria João Rodrigues, reflects in Público on the EU's capacity to play its role as a major international actor and exert its own strategic autonomy

‘SDG funding gap swells to $137trn’ New Policy Study from FEPS, together with Earth4All, to deliver a five-point plan for the SDGs.

by Edie 19/09/2023
The “SDGs for All” report emphasises that policymakers have the potential to significantly advance SDG implementation by the original 2030 deadline and beyond by enacting five “extraordinary turnarounds” that break away from current trends.