13 Amendments of Ivars IJABS related to 2020/2037(INI)
Amendment 19 #
Motion for a resolution
Recital B
Recital B
B. whereas despite the euro area’s economic size and influence in global trade, the use of the euro lags behind the US dollar by a wide margin in terms of its use as international reserve currency, invoicing currency and share of international foreign exchange transactions and debt securities, yet it is still ahead of all other competing currencies;
Amendment 25 #
Motion for a resolution
Recital C
Recital C
C. whereas current geopolitical tensions and international trade challenges – including the disruption of value chains, technological developments, digital transformation, the rise of China’s economic power and the challenges posed by the US torecent divergence between the US interests and multilateralism – lead to a multipolar world economy, thus paving the way for a potential shift towards a multicurrency reserve system where the euro will offer additional currency choices for market participants globally and allow for reduced global financial risks;
Amendment 54 #
Motion for a resolution
Recital H
Recital H
H. whereas post-pandemic economic recovery requires the fast implementation of the EU recovery plan, which will address structural weaknesses and put in place policies to enhance growth and competitiveness; whereas such policies are paramount both to enhancing the attractiveness of the euro globally and to strengthening Europe’s economic and financial autonomy; whereas a meaningful fiscal stimulus, in conjunction with a monetary one – including a joint European effort –, will reinforce EU counter- cyclical lending capacities and consequently have a positive effect on the international position of the euro; whereas the premature withdrawal of fiscal stimulus and the lack of coordination of fiscal action can undermine the attractiveness of the euro as an international currency;
Amendment 68 #
Motion for a resolution
Recital J
Recital J
J. whereas while the wider use of an international currency bears privileges and gainadvantages, it also implies global responsibilities, dependencies and costs;
Amendment 76 #
Motion for a resolution
Recital K
Recital K
K. whereas market-driven shifts towards strengthening the international role of the euro require a strong commitment to open and free international markets, reinforced by targeted facilitating policies that are aligned with this objective and that are part of a comprehensive road map;
Amendment 86 #
Motion for a resolution
Paragraph 1
Paragraph 1
1. Considers that strengthening the international role of the euro can generate benefits both in the short and long term; notes, however, that it also brings risks and responsibilities that must be taken into consideration in the process of complementing market forces with policy measures; underlines, in particular, that the international currency status of the euro can enhance monetary policy autonomy and reinforce its global transmission, make the euro more of an attractive investmentnder the EU monetary policy less dependent on the US-driven global financial cycle, make the euro more of an attractive currency (in terms of its use as international reserve, invoicing and share of international foreign exchange transactions and debt denomination), improve the liquidity of the monetary system, enhancing market efficiency, reducing trading and funding costs and enhancing the euro area’s resilience to financial shocks, and provide "exorbitant privilege" and lower exchange rate pass- through.
Amendment 105 #
Motion for a resolution
Paragraph 3
Paragraph 3
3. Reiterates, in this context, the need to deepen and complete the Economic and Monetary Union (EMU), the Banking Union and the Capital Markets Union (CMU), with a view to enhancing the international competitiveness of European markets and the attractiveness of the euroincluding by advancing the Banking Union through the creation of a “safe portfolio” approach and the empowerment of the Single Resolution Board through the reform of the resolution framework and setting up a European deposit insurance, with a view to develop a single market for European banks and break the “diabolic” feedback loop between Member States and its own financial system, hence increasing the attractiveness of euro-denominated assets;
Amendment 117 #
Motion for a resolution
Paragraph 4
Paragraph 4
4. Underlines that making more progress in developing the Capital Markets Union (CMU) would increase both resilience to and independence from global developments and the attractiveness of euro-denominated assets; deplores the segmentation of the euro area’s capital markets along national lines, which has resulted in small-sized markets; considers Brexit, in that regard, as both challenge and opportunity;
Amendment 132 #
Motion for a resolution
Paragraph 5
Paragraph 5
5. Emphasises the need for sustainacredible and sound fiscal and structural growth- enhancing policies that are based on a commitment to credible fiscal rules; calls for further reflection on the adequacy of the current stability and growth pact framework despite the challenging circumstancesin light of the challenging circumstances and the legacy issues that tackling the economic crisis derived from the Covid-19 pandemic will leave for decades to come; believes in the need for a credible fiscal framework that reinforces the euro’s attractiveness by promoting structural growth, ensuring stability to improve the sustainability of Member States finances, and minimizing redenomination risk; supports the plan outlined in Next Generation EU to use, in addition to monetary policy, a fiscal impulse, notably borrowing EUR 750 billion from capital markets bonds to finance the recovery and green transition, in addition to the issuance of EUR 100 billion in ‘social’ bonds under the European instrument for temporary support to mitigate unemployment risks in an emergency (SURE), which is intended to preserve employment; applauds the high level of interest that investors have demonstrated in European bonds;
Amendment 146 #
Motion for a resolution
Paragraph 6
Paragraph 6
6. Highlights that an adequate supply of safe assets is a precondition for international currency status, and expresses its regret atunderlines the limited availability of euro- denominated safe assets; underlinWelcomes, therefore, the need to create European safe assets; considers that the proposed issuance of a decision to issue European common debt to finance the economic recovery, as it will provide an EU-level reserve asset benchmark and increase the supply of euro-denominated safe assets; expects the ECB to conduct an assessment of the possibility of issuing certificates of deposit under its existing legal basis; welcomes, in this context, the issuance of EUR 750 billion from capital markets bonds under the Next Generation EU plan to finance the recovery and green transition, in addition to the issuance of EUR 100billion in ‘social’ bonds under the European instrument for temporary support to mitigate unemployment risks in an emergency (SURE), which is intended to preserve employment; calls on the ESRB to update its 2018 “Report of the High-Level Task Force on Safe Assets” and for the Commission to re-evaluate its2018 impact assessment on its “Proposal for a Regulation on sovereign bond-backed securities” (SBBS);
Amendment 153 #
Motion for a resolution
Paragraph 6 a (new)
Paragraph 6 a (new)
6a. Warns, despite the high level of interest that investors have demonstrated in European bonds, about potential negative liquidity effects that may arise as a result of the fragmentation of the European safe assets between green bonds, social bonds and “standard” bonds; acknowledges, nevertheless, the leading role of the euro as the main currency of denomination for the issuance of green bonds; considers that the consolidation of the EU role as a global hub for green finance could strengthen the euro as the currency of choice for sustainable financial products, bolstering its international role;
Amendment 161 #
Motion for a resolution
Paragraph 7
Paragraph 7
7. Takes note of the role geopolitics plays in global currency competition; acknowledges the persistence of the dollar’s hegemony as a medium of exchange, unit of account and store of value by, inter alia, the power to change the perceived costs and benefits of the available options through force, payment or persuasion, the ability to shape the structure of interaction through rules that modify the options of governments and private actors like the imposition of unilateral sanctions or by threatening trade retaliation; calls for the strengthening of the geopolitical role of the EU, in order to support, while taking full advantage, of a strengthened role of the euro
Amendment 170 #
Motion for a resolution
Paragraph 8
Paragraph 8
8. Is concerned that EMU’s lack of ability to speak as a unified voice withe EU’s fragmented institutional setting and resulting lack of ability to speak as a unified voice may undermine the credibility of EU’s monetary and fiscal policies, holding back the international institutions can hold back the international role of eurorole of euro; underlines the need to continue the fight against money laundering by setting up a European supervisor and financial intelligence unit, leaving behind the days of economic nationalism that motivates the current decentralised supervisory system; highlights the potential of integrating the European Stability Mechanism into the EU legal order, fostering the creation of a European Treasury to manage the nearly one trillion euros in European safe assets; regrets that discussions in the Council have remained at an impasse more than 3 years after the Commission’s 2017 proposal on the establishment of the European Monetary Fund;