2020/2037(INI) Strengthening the international role of the euro
Lead committee dossier:
Progress: Procedure completed
| Role | Committee | Rapporteur | Shadows |
|---|---|---|---|
| Lead | ECON |
HÜBNER Danuta Maria ( EPP)
|
BELKA Marek ( S&D),
GARICANO Luis ( Renew),
HAHN Henrike ( Verts/ALE),
MEUTHEN Jörg ( ID),
FITTO Raffaele ( ECR),
MACMANUS Chris ( GUE/NGL)
|
| Committee Opinion | INTA |
Lead committee dossier:
Legal Basis:
RoP 54
Legal Basis:
RoP 54Events
2021/08/03
EC - Commission response to text adopted in plenary
Documents
2021/03/25
EP - Results of vote in Parliament
Documents
2021/03/25
EP - Decision by Parliament
Details
The European Parliament adopted by 494 votes to 94, with 100 abstentions, a resolution on strengthening the international role of the euro.
Despite the economic weight of the euro area and its influence in world trade, the use of the euro lags considerably behind that of the US dollar as a store of value and as an invoicing currency, but is close to that of the dollar in terms of the proportion of international payments. The euro remains the second most important currency in the international monetary system but its global potential has not yet been fully realised.
Despite the euro area’s economic size and influence in global trade, the euro lags behind the US dollar by a wide margin in terms of its use as an international reserve currency and invoicing currency, but ranks almost equally compared to the dollar in terms of proportion of international payments. The euro remains the second most important currency in the international monetary system, however, its global potential has not been fully reached.
Benefits and challenges of strengthening the international role of the euro
Stressing the irreversible nature of the single currency, Parliament considers that it is in the long-term strategic interest of the euro area and its Member States to reap all possible benefits from issuing the euro currency, and in particular from its enhanced international role. It recommended setting an early target date for the adoption of the euro in Bulgaria and Croatia and encouraged the Commission to assess the potential consequences of an enlargement of the euro area on the process of strengthening the international role of the euro.
Although not all the effects of the internationalisation of the euro can be easily quantified, Members stressed that the strengthening of the international role of the euro could bring benefits in the short and long term, although it also entails risks and responsibilities that need to be taken into consideration in the process of complementing market forces with policy measures.
In particular, the resolution pointed out that the euro's status as an international currency could:
- increase the use of the euro as a reserve currency, reduce external financing and transaction costs for currency exchanges and reduce the costs and risks borne by European businesses and households;
- gradually creating deeper, more liquid and integrated European financial markets by making them less vulnerable to exchange rate shocks;
- increase the autonomy of EU monetary policy, strengthen its global transmission, render EU monetary policy less dependent on exogenous economic and financial spill overs and improve market efficiency and the resilience of the euro area to financial shocks.
A stronger international role for the euro could enhance the resilience of the international financial system, providing greater choice to market participants around the world and making the international economy less vulnerable to shocks related to the heavy dependence of many sectors on a single currency.
Key challenges
For the potential benefits of a stronger euro to materialise, the EU needs to complete the infrastructure for the common currency and make further progress on its critical functions. Parliament reiterated the need to deepen and complete Economic and Monetary Union (EMU), Banking Union and Capital Markets Union (CMU), with a view to enhancing the international competitiveness of European markets, the stability and attractiveness of the euro and, ultimately, the EU’s strategic autonomy. It also insisted on the need to establish a well-designed system to guarantee and protect EU bank deposits and the completion of the mechanism dealing with failing banks, will strengthen the international role of euro.
Members stressed the need for fair and sound structural policies on the economy, public finances, productivity and growth, both at EU and Member State level, underpinned by a commitment to credible fiscal rules, to maintain the stability and integrity of the euro. They called for further reflection on the current stability and growth pact in light of the challenging circumstances and the legacy issues resulting from the response to the economic crisis caused by the COVID-19 pandemic, which will remain for decades to come. An appropriate timeline for the withdrawal of certain support measures will be necessary to avoid undermining recovery and growth.
Policies strengthening the international role of the euro
Members recommended actions to develop policy measures that would strengthen the international role of the euro, while enhancing the internal functioning and cohesion of the euro area and promoting the attainment of important climate and sustainability goals.
In addition to deepening and completing the EMU, Members considered that policies critical for and conducive to strengthening the international role of the euro could target, inter alia, financial services and capital markets, labour market, payments systems, international trade, energy, digital transformation, the fight against climate change, and foreign and security policies.
The centralised clearing market is highly concentrated, particularly in the clearing of euro-denominated interest rate derivatives, which is heavily dependent on UK based CCPs. In this respect, Parliament stressed the importance of regulatory cooperation between the EU and the UK, based on a voluntary and non-binding framework outside the Trade and Cooperation Agreement, which would allow for a dialogue on all relevant regulatory issues while fully respecting each side’s regulatory and supervisory autonomy.
The Commission was called upon to foster the use of the euro in prices and invoicing in trade transactions and to promote the use of the euro in EU trade agreements.
Lastly, Parliament stressed the role the ECB plays in maintaining trust in the euro and safeguarding monetary autonomy in the global context, as well as price stability. It also highlighted the importance of the stability of financial markets in the euro area as a precondition for international currency status and welcomed the ECB’s quick and substantial monetary policy responses to the COVID-19 crisis taken in an emergency context.
Documents
2021/03/25
EP - End of procedure in Parliament
2021/03/24
EP - Debate in Parliament
Documents
2021/03/15
EP - Committee report tabled for plenary
Details
The Committee on Economic and Monetary Affairs adopted an own-initiative report by Danuta Maria HÜBNER (EPP, PL) on strengthening the international role of the euro.
Despite the euro area’s economic size and influence in global trade, the euro lags behind the US dollar by a wide margin in terms of its use as an international reserve currency and invoicing currency, and in its share of international exchange transactions and debt securities but ranks almost equally compared to the dollar in terms of proportion of international payments; the euro remains the second most important currency in the international monetary system.
Benefits and challenges of strengthening the international role of the euro
Stressing the irreversible nature of the single currency, Members welcomed the entry of Bulgaria and Croatia into the European Exchange Rate Mechanism II in July 2020 and recommended setting a swift target date for the adoption of the euro in both countries. In this respect, they encouraged the European Commission to assess the potential consequences of an enlargement of the euro area on the process of strengthening the international role of the euro.
Members considered that it is in the long-term strategic interest of the euro area and its Member States to reap all possible benefits from the issuance of the euro currency, and in particular from its enhanced international role.
Although not all the effects of the internationalisation of the euro can be easily quantified, Members stressed that the strengthening of the international role of the euro could bring benefits in the short and long term, although it also entails risks and responsibilities that need to be taken into consideration in the process of complementing market forces with policy measures.
In particular, the report pointed out that the euro's status as an international currency could:
- increase the use of the euro as a reserve currency, reduce external financing and transaction costs for currency exchanges and reduce the costs and risks borne by European businesses and households
- gradually creating deeper, more liquid and integrated European financial markets by making them less vulnerable to exchange rate shocks
- increase the autonomy of EU monetary policy, strengthen its global transmission, render EU monetary policy less dependent on exogenous economic and financial spill overs and improve market efficiency and the resilience of the euro area to financial shocks.
A stronger international role for the euro could enhance the resilience of the international financial system, providing greater choice to market participants around the world and making the international economy less vulnerable to shocks related to the heavy dependence of many sectors on a single currency.
Key challenges
The report stressed that for the potential benefits of a stronger euro to materialise, the Union needs to complete the infrastructure for the common currency and make further progress on its critical functions. It reiterated the need to deepen and complete Economic and Monetary Union (EMU), Banking Union and Capital Markets Union (CMU), with a view to enhancing the international competitiveness of European markets, the stability and attractiveness of the euro and, ultimately, the EU’s strategic autonomy.
The establishment of a well-designed system to guarantee and protect EU bank deposits and the completion of the mechanism dealing with failing banks, will strengthen the international role of euro.
Members also stressed the need for fair and sound structural policies on the economy, public finances, productivity and growth, both at EU and Member State level, underpinned by a commitment to credible fiscal rules, to maintain the stability and integrity of the euro. They called for further reflection on the current stability and growth pact in light of the challenging circumstances and the legacy issues resulting
from the response to the economic crisis caused by the COVID-19 pandemic, which will remain for decades to come. An appropriate timeline for the withdrawal of certain support measures will be necessary to avoid undermining recovery and growth.
Policies strengthening the international role of the euro
Members recommended actions to both design and implement policy measures that foster the international role of the euro and support market-driven shifts in this direction, while also consolidating the functioning and the cohesion of the euro area internally and promoting the attainment of important climate and sustainability goals, taking into account specificities of peripheral regions.
In addition to deepening and completing the EMU, Members considered that policies critical for and conducive to strengthening the international role of the euro could target, inter alia, financial services and capital markets, labour market, payments systems, international trade, energy, digital transformation, the fight against climate change, and foreign and security policies.
The Commission is called on to foster the use of the euro in pricing and invoicing in trade transactions, and to make use of the high potential offered by financial instruments denominated in euro, by actively engaging with private stakeholders and trade partners, and by promoting the use of euro in EU trade agreements. A higher share of energy contracts being traded in euro could enhance the international role of the single currency.
The report stressed the role the ECB plays in maintaining trust in the euro and safeguarding monetary autonomy in the global context, as well as price stability. It also highlighted the importance of the stability of financial markets in the euro area as a precondition for international currency status and welcomed the ECB’s quick and substantial monetary policy responses to the COVID-19 crisis taken in an emergency context.
Documents
2021/03/04
EP - Vote in committee
2020/12/18
EP - Amendments tabled in committee
Documents
2020/11/10
EP - Committee draft report
Documents
2020/04/16
EP - Committee referral announced in Parliament
2020/01/22
EP - HÜBNER Danuta Maria (EPP) appointed as rapporteur in ECON
Documents
- Commission response to text adopted in plenary: SP(2021)345
- Results of vote in Parliament: Results of vote in Parliament
- Decision by Parliament: T9-0110/2021
- Debate in Parliament: Debate in Parliament
- Committee report tabled for plenary: A9-0043/2021
- Amendments tabled in committee: PE663.042
- Committee draft report: PE650.386
- Committee draft report: PE650.386
- Amendments tabled in committee: PE663.042
- Commission response to text adopted in plenary: SP(2021)345
Activities
- Heidi HAUTALA
Plenary Speeches (2)
- Danuta Maria HÜBNER
Plenary Speeches (1)
Votes
Renforcement du rôle international de l’euro - Strengthening the international role of the euro - Stärkung der internationalen Rolle des Euro - A9-0043/2021 - Danuta Maria Hübner - Proposition de résolution #
2021/03/25 Outcome: +: 494, 0: 100, -: 94
PPE
NI
The Left| Amendments | Dossier |
| 228 |
2020/2037(INI)
2020/12/18
ECON
228 amendments...
Amendment 1 #
Motion for a resolution Citation 1 a (new) — having regard to the Commission Communication of 6 December 2017 entitled ‘New budgetary instruments for a stable euro area within the Union framework’
Amendment 10 #
Motion for a resolution Citation 25 a (new) — having regard to the briefing “Guidance by EU supervisory and resolution authorities on Brexit” by Economic Governance Support Unit (EGOV) " PE 651.369 -October2020"22a _________________ 22a https://www.europarl.europa.eu/RegData/ etudes/BRIE/2020/651369/IPOL_BRI(20 20)651369_EN.pdf
Amendment 100 #
Motion for a resolution Paragraph 3 3. Reiterates, in this context, the need to
Amendment 101 #
Motion for a resolution Paragraph 3 3. Reiterates, in this context, the need
Amendment 102 #
Motion for a resolution Paragraph 3 3. Reiterates, in this context, the need to deepen and complete the Economic and Monetary Union (EMU)
Amendment 103 #
Motion for a resolution Paragraph 3 3. Reiterates, in this context, the need to deepen and complete the Economic and Monetary Union (EMU)
Amendment 104 #
Motion for a resolution Paragraph 3 3. Stresses that the EU’s capacity to make the euro a widely used currency in international trade able to compete with the US dollar’s dominance, also depends on the development of strong domestic markets. 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
Amendment 105 #
Motion for a resolution Paragraph 3 3. Reiterates, in this context, the need to deepen and complete the Economic and Monetary Union (EMU),
Amendment 106 #
Motion for a resolution 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 euro; stresses that the Banking Union will be incomplete until it is accompanied by a European deposit guarantee scheme and credible support for the Single Resolution Fund; welcomes the agreement reached in the Eurogroup on the reform of the European Stability Mechanism and support for the Single Resolution Fund;
Amendment 107 #
Motion for a resolution Paragraph 3 3. Reiterates, in this context, the need to
Amendment 108 #
Motion for a resolution 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 stability and attractiveness of the euro;
Amendment 109 #
Motion for a resolution Paragraph 3 a (new) 3a. Recalls the progress made in building the Banking Union and takes note of the agreement reached in the Eurogroup on the reform of the European Stability Mechanism and the advancement of the entry into force of the common backstop to the Single Resolution Fund; welcomes the ongoing review by the Commission of the crisis management and deposit insurance framework to increase the efficiency, proportionality and overall coherence of the framework to manage bank crises in the EU;
Amendment 11 #
Motion for a resolution Recital A A. whereas in its 20 years of existence, the euro has
Amendment 110 #
Motion for a resolution Paragraph 3 a (new) 3a. Underlines that the international role of the euro would also benefit from the untapping of the potential of one of the greatest added values of the EU - its single market; calls in this respect for the completion of the single market, which encompasses all EU countries, also the ones not belonging to the euro area;
Amendment 111 #
Motion for a resolution Paragraph 3 b (new) 3b. Recalls that the Banking Union still lacks a deposit insurance framework, as well as a mechanism to ensure that liquidity can be provided to a bank in resolution; takes note of the request by the Euro Summit of 11 December to the Eurogroup to prepare a stepwise and time-bound work plan on all outstanding elements needed to complete the Banking Union;
Amendment 112 #
Motion for a resolution Paragraph 3 c (new) 3c. Finalising the banking union, and most notably putting in place a system to guarantee and protect EU bank deposits and the completing the mechanism dealing with failing banks, will strengthen the international role of euro;
Amendment 113 #
Motion for a resolution Paragraph 4 Amendment 114 #
Motion for a resolution Paragraph 4 4. Underlines that making more progress in developing the CMU
Amendment 115 #
Motion for a resolution Paragraph 4 4.
Amendment 116 #
Motion for a resolution Paragraph 4 4. Underlines that making more progress in developing the CMU would increase both resilience to and independence from global developments and the attractiveness of euro-denominated assets;
Amendment 117 #
Motion for a resolution 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 118 #
Motion for a resolution Paragraph 4 a (new) 4a. Underlines that a stronger role of the Euro in the digital age must be underpinned by innovative digital finance solutions and effective digital payments in euro, with strong European players in the lead, and calls to promote this through implementing comprehensive strategies on digital finance and retail payments; Considers that in view of the digital transformation, the EU should put in place a framework with high standards of cybersecurity, including on the protection of privacy and on data protection, and ethically designed artificial intelligence;
Amendment 119 #
Motion for a resolution Paragraph 4 a (new) 4a. Points out that the completion of the CMU and enhancement of the euro’s international role would benefit and unify European markets. These achievements would promote the euro’s role in the international marketplace, as deep and liquid domestic financial markets are essential for a currency to achieve and raise its international status, which is particularly important after Brexit. Thus, the EU could become a more competitive and attractive market in which international companies and investors would want to operate;
Amendment 12 #
Motion for a resolution Recital A A. whereas in its 20 years of existence, the euro has
Amendment 120 #
Motion for a resolution Paragraph 4 a (new) 4a. Highlights that the completion of the Banking Union requires a fully- fledged European Deposit Insurance Scheme (EDIS) and an appropriate backstop to the Single Resolution Fund (SRF); calls for the creation of a fully mutualised EDIS; welcomes the decision from the euro area ministers of finance to advance the introduction of the ESM’s backstop to the SRF; stresses that the backstop to the SRF must be swiftly operationalised without any more delays;
Amendment 121 #
Motion for a resolution Paragraph 4 a (new) 4a. Emphasises that a stronger euro at international level will strengthen the resilience of the international financial system, offering greater choice to market participants around the world and making the international economy less vulnerable to shocks related to the heavy dependence of many sectors on a single currency.
Amendment 122 #
Motion for a resolution Paragraph 4 a (new) 4a. Considers Brexit both a challenge and opportunity for the euro and notes how its potential use could mitigate the impact of Brexit on the island of Ireland
Amendment 123 #
Motion for a resolution Paragraph 4 b (new) 4b. Takes note that crypto-assets are becoming an innovative source of funding, with the potential to be an effective tool to fill funding gaps for SME and start-ups; stresses the need to have a clear and consistent guidance at EU level on the applicability of existing regulatory and prudential processes, which will promote more innovation and improve the use of the euro; welcomes in that regard the proposal of the European Commission for an EU Regulation aiming to foster the use of crypto assets in euro by improving legal certainty in the regulatory treatment of crypto-assets, preserve consumer protection and ensure financial stability;
Amendment 124 #
Motion for a resolution Paragraph 4 b (new) 4b. Acknowledges that, as a result of Brexit, the EU is losing an important partner; believes, however, that the EU has to be able to turn Brexit into an opportunity to build on its strengths and actively compete on global markets; stresses that stepping up the role of the euro in third countries and protecting Europe's economic sovereignty should be a priority in the post-Brexit context;
Amendment 125 #
Motion for a resolution Paragraph 5 5. Emphasises the need for sustainable 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 stability and growth pact framework despite the challenging circumstances;
Amendment 126 #
Motion for a resolution Paragraph 5 5. Emphasises the need for
Amendment 127 #
Motion for a resolution Paragraph 5 5. Emphasises the need for sustainable and sound fiscal and structural growth- enhancing policies that are based on a commitment to credible fiscal rules;
Amendment 128 #
Motion for a resolution Paragraph 5 5. Emphasises the need for sustainable and sound fiscal and structural growth- enhancing policies that are based on a
Amendment 129 #
Motion for a resolution Paragraph 5 5. . Emphasises the need for sustainable and sound fiscal and structural growth-
Amendment 13 #
Motion for a resolution Recital A A. whereas in its 20 years of existence, the euro has become a symbol of Europe’s economic strength and of its position in the world, becoming a channel of proliferating European values of democracy, free markets and international cooperation;
Amendment 130 #
Motion for a resolution Paragraph 5 5. Emphasises the need for sustainable and sound fiscal and structural growth- enhancing policies that are based on a commitment to credible fiscal rules; calls for
Amendment 131 #
Motion for a resolution Paragraph 5 5. Emphasises the need for sustainable 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 stability and growth pact framework despite the challenging circumstances; supports the
Amendment 132 #
Motion for a resolution Paragraph 5 5. Emphasises the need for
Amendment 133 #
Motion for a resolution Paragraph 5 5. Emphasises the need for sustainable 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 stability and growth pact framework despite the challenging circumstances; 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; Emphasizes in this respect that a crucial factor in the use of Next Generation EU is, alongside the investment in a greener economy, is to intensify policy to restructure the EU economies toward medium and high-level technologies; applauds the high level of interest that investors have demonstrated in European bonds;
Amendment 134 #
Motion for a resolution Paragraph 5 5.
Amendment 135 #
Motion for a resolution Paragraph 5 5. Emphasises the need for sustainable and sound fiscal and structural growth- enhancing policies that are based on a commitment to credible fiscal rules
Amendment 136 #
Motion for a resolution Paragraph 5 5. Emphasises the need for sustainable and sound fiscal and structural growth- enhancing
Amendment 137 #
Motion for a resolution Paragraph 5 5. Emphasises the need for sustainable and sound fiscal and structural growth- enhancing policies that are based on a commitment to credible fiscal rules to maintain the stability and integrity of the Euro; calls for further reflection on the adequacy of the stability and growth pact framework and its enforcement despite the challenging circumstances; 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 138 #
Motion for a resolution Paragraph 5 5. Emphasises the need for strong, fair, and sustainable
Amendment 139 #
Motion for a resolution Paragraph 5 a (new) 5a. Recall that making the Union the global leader and standard-setter in Green finance will strengthen the role of the euro on the international scene; Further stresses that the Commission’s decision to issue green bonds to finance the green part of the recovery plan will make it become the wold largest issuer of green bonds and thus will participate to strengthening the international role of the euro
Amendment 14 #
Motion for a resolution Recital A A. whereas in its 20 years of existence, the euro has become a positive symbol of Europe’s unity, integration, economic strength and
Amendment 140 #
Motion for a resolution Paragraph 5 a (new) 5a. Takes note of the EU green bonds, as an important element of the Recovery Fund; reiterates that the green bonds are debt instruments whose proceeds aim at financing sustainable and environmentally friendly investments; urges the Commission and Member States to provide investors with a strong degree of legal certainty that their investment will be used to the intended ends;
Amendment 141 #
Motion for a resolution Paragraph 5 a (new) 5a. Notes that the Union must avoid repeating the same mistakes made during the sovereign debt crisis in the euro area; therefore believes that a premature withdrawal of support measures should be avoided in order to prevent the possibility of a recession;
Amendment 142 #
Motion for a resolution Paragraph 5 a (new) 5a. Highlights, in this respect, that a higher amount of EU's own resources through various taxes is a step in the right direction in becoming a true fiscal entity, and therefore, strengthening the role of the euro;
Amendment 143 #
Motion for a resolution Paragraph 5 b (new) 5b. Encourages the EIB to issue a larger number of euro-denominated bonds, which would improve the availability of risk free assets denominated in euro;
Amendment 144 #
Motion for a resolution Paragraph 5 c (new) 5c. Insists that the European Parliament should be granted stronger democratic role through political control in this process;
Amendment 145 #
Motion for a resolution Paragraph 5 d (new) 5d. The recent experience with SURE issuance confirms that the collective borrowing strengthen the trust in euro and makes it more attractive; acknowledges, therefore, that financing the recovery plan through a collective response to a common shock is the right approach;
Amendment 146 #
Motion for a resolution Paragraph 6 6. Highlights that an adequate supply of safe assets is a precondition for international currency status, and
Amendment 147 #
Motion for a resolution Paragraph 6 6. Highlights that an adequate supply of safe assets is a precondition for international currency status, and expresses its regret at the limited availability of euro- denominated safe assets;
Amendment 148 #
Motion for a resolution Paragraph 6 6. Highlights that an adequate supply of safe assets is a precondition for international currency status, and expresses its regret at the limited availability of euro- denominated safe assets;
Amendment 149 #
Motion for a resolution Paragraph 6 6. Highlights that an adequate supply of safe assets is a precondition for international currency status, and expresses its regret at the limited availability of euro- denominated safe assets; underlines, therefore, the need to create European safe assets in the form of mutualised debt instruments; considers that the proposed issuance of a common debt to finance recovery will provide an EU-level reserve asset benchmark and increase the supply of euro-denominated safe assets; hopes that, over time, this will be the germ of genuine permanent eurobonds; expects the ECB to conduct an assessment of the possibility of issuing certificates of deposit under its existing legal basis;
Amendment 15 #
Motion for a resolution Recital A a (new) Aa. whereas the euro is currently supported as common currency by a majority of citizens in all 19 euro area Member States1a; _________________ 1aAccording to EC Flash Eurobarometer 481 of November 2019 the support for the euro has increased: two thirds of respondents think that having the euro is a good thing for their country, a proportion higher than in 2018 in 13 countries (and lower in four countries).
Amendment 150 #
Motion for a resolution Paragraph 6 6. Highlights that an adequate supply of safe assets is a precondition for international currency status, and expresses its regret at the limited availability of euro- denominated safe assets; underlines, therefore, the need to create European safe assets; considers that the proposed issuance of a common debt to finance recovery will provide an EU-level reserve asset benchmark and increase the supply of euro-denominated safe assets; calls on the Commission to submit a legislative proposal for the creation of a true European safe asset; expects the ECB to conduct an assessment of the possibility of issuing certificates of deposit under its existing legal basis;
Amendment 151 #
Motion for a resolution Paragraph 6 6. Highlights that an adequate supply of safe assets is a precondition for international currency status, and expresses its regret at the limited availability of euro- denominated safe assets;
Amendment 152 #
Motion for a resolution Paragraph 6 6. Highlights that an adequate supply of safe assets is a precondition for international currency status, and expresses its regret at the limited availability of euro- denominated safe assets;
Amendment 153 #
Motion for a resolution 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 154 #
Motion for a resolution Paragraph 6 a (new) 6a. Welcomes the quick and substantial ECB monetary policy response to the COVID-19 crisis in the context of emergency and acknowledges the positive impact of such response on the economic situation of the euro area as well as on the attractiveness of the euro, by stabilising financial markets, supporting liquidity and funding conditions in the euro area economy and globally, as well as, in shoring up market confidence;
Amendment 155 #
Motion for a resolution Paragraph 6 a (new) 6a. Notes that the EU already leads the world in green bond issuance and strongly supports efforts to expand such issuance and become a world leader in setting robust standards for green bonds; calls for swift completion and implementation of the taxonomy of sustainable economic activities; calls on the Commission to present an ambitious new action plan on sustainable finance and a proposal for a robust EU green bond standard;
Amendment 156 #
Motion for a resolution Paragraph 6 a (new) 6a. Underlines that as large and permanent current account surpluses create instability for a prominent international role of a currency, the Euro area growth model should be rebalanced and the export-led tendency shall be offset by measures that stimulate the internal demand, to a level compatible with potential supply;
Amendment 157 #
Motion for a resolution Paragraph 6 a (new) 6a. Emphasises that the benefits of a strengthened international role for the euro may come from a more liquid markets than the single currency and from financial assets secured at supranational level;
Amendment 158 #
Motion for a resolution Paragraph 6 b (new) 6b. Stresses the irreversible nature of the single currency; emphasises that the euro is not only a monetary project but also a political one;
Amendment 159 #
Motion for a resolution Paragraph 6 c (new) 6c. Draws attention to the requirement, laid down in the Treaties, for every Member State, except for Denmark, to adopt the single currency once they have met the Maastricht convergence criteria; welcomes Bulgaria and Croatia’s entry into ERMII in July 2020 and supports a swift target date for the adoption of the euro in both countries; encourages, in that regard, the European Commission to assess the potential impact of the further enlargement of the euro area on the process of strengthening the international role of euro;
Amendment 16 #
Motion for a resolution Recital A b (new) Ab. whereas the euro is the official currency of the euro area, currently comprised of 19 out of 27 EU member states; whereas Bulgaria, Croatia and Denmark have anchored their currencies to the euro through the Exchange Rate Mechanism (ERM II); whereas the euro is also the official currency1b, or “de facto” currency 1c of certain non-EU territories; _________________ 1bThe euro is used as official currency, on the basis of a formal arrangement with the European Union, by the Principality of Monaco, the Republic of San Marino, the Vatican City State the Principality of Andorra, as well as by Saint-Piette-et- Miquelon and the Island of Saint- Barthelemy which are both non-EU French overseas territories 1cThe euro became a de facto domestic currency in Kosovo and Montenegro, replacing the use of German mark, which was previously used as the de facto currency in these areas.
Amendment 160 #
Motion for a resolution Paragraph 7 7. Takes note of the role geopolitics plays in global currency competition; underlines that, given the centrality of US dollar in international trade and as a reserve currency, the extraterritoriality of US laws seriously affects European companies and ultimately challenges the EU’s and its Member States’ sovereignty; insists that promoting a greater role for the euro in the international financial system constitutes a way to circumvent the power of US sanctions; welcomes in this regard measures already taken by the EU such as the activation of the EU’s “blocking statute” (Council Regulation (EC) No 2271/96 of 22 November 1996), the establishment of the INSTEX mechanism, as well as the initiative taken by 16 European banks to launch the European Payment Initiative which aims at creating a unified payment solution for consumers and merchants across Europe.
Amendment 161 #
Motion for a resolution 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 162 #
Motion for a resolution Paragraph 7 7. Takes note of the role geopolitics play
Amendment 163 #
Motion for a resolution Paragraph 7 7. Takes note of the role geopolitics and international trade play
Amendment 164 #
Motion for a resolution Paragraph 7 7. Takes note of the role geopolitics plays in global currency competition; highlights in this regard that the EU’s limited geopolitical reach is in part due to its military dependence on the United States;
Amendment 165 #
Motion for a resolution Paragraph 7 7. Takes note of the role geopolitics plays in global currency competition but chooses not to support the weaponisation of the euro as a tool in this competition;
Amendment 166 #
Motion for a resolution Paragraph 8 Amendment 167 #
Motion for a resolution Paragraph 8 Amendment 168 #
Motion for a resolution Paragraph 8 8.
Amendment 169 #
Motion for a resolution Paragraph 8 8. Is concerned
Amendment 17 #
Motion for a resolution Recital B Amendment 170 #
Motion for a resolution Paragraph 8 8. Is concerned that
Amendment 171 #
Motion for a resolution Paragraph 8 8. Is concerned that EMU’s lack of ability to speak as a unified voice with international institutions can hold back the international role of euro; calls for further coordination and convergence efforts to boost the euro’s international role; reiterates the need for more unified representation of the EU in multilateral organisations and bodies, in line with Parliament’s resolution of 12 April 2016 on the EU role in the framework of international financial, monetary and regulatory institutions and bodies;
Amendment 172 #
Motion for a resolution Paragraph 8 8. Is concerned that EMU’s lack of ability to speak as a unified voice with international institutions can hold back the international role of euro; calls on the Commission and the Council to provide detailed answers on the actions undertaken to follow up on the Parliament’s proposals in its resolution of 12 April 2016 on the EU role in the framework of international financial, monetary and regulatory institutions and bodies;
Amendment 173 #
Motion for a resolution Paragraph 8 8. Is concerned
Amendment 174 #
Motion for a resolution Paragraph 8 a (new) 8a. Calls on the Commission to recognise that Member States are sovereign to choose their own currency and emphasises the importance to abolish any obligation to join the euro area from the EU-treaties.
Amendment 175 #
Motion for a resolution Subheading 2 Policies supporting the sustainable international
Amendment 176 #
Motion for a resolution Paragraph 10 10. Underlines that
Amendment 177 #
Motion for a resolution Paragraph 10 10. Underlines that a strengthened international role of the euro would enhance the EU’s capability to enforce open strategic autonomy; recommends, therefore, actions intended to both design and implement policy measures that foster the international role of the euro and support market-driven shifts in this direction, while taking care to minimise the possibility that such developments could reinforce the economic and financial vulnerability of peripheral regions by encouraging a shift of resources to the centre of the monetary union;
Amendment 178 #
Motion for a resolution Paragraph 10 10. Underlines that a strengthened international role of the euro would enhance the EU’s
Amendment 179 #
Motion for a resolution Paragraph 10 10. Underlines that a strengthened international role of the euro would enhance the EU’s capability to enforce open strategic autonomy; recommends, therefore, actions intended to both design and implement policy measures that foster the international role of the euro and support market-driven shifts in this direction if they are compatible with the EU’s Climate and social goals;
Amendment 18 #
Motion for a resolution 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,
Amendment 180 #
Motion for a resolution Paragraph 10 10. Underlines that a strengthened international role of the euro
Amendment 181 #
Motion for a resolution Paragraph 10 10. Underlines that a strengthened international role of the euro would
Amendment 182 #
Motion for a resolution Paragraph 10 10. Underlines that a strengthened international role of the euro would enhance the EU’s capability to enforce open strategic autonomy; recommends, therefore, actions intended to both design and implement policy measures that foster the international role of the euro and support
Amendment 183 #
Motion for a resolution Paragraph 10 a (new) 10a. Emphasises that the euro is not only an economic project but also a political one; stresses the irreversible nature of the single currency; draws attention to the requirement for every Member State, with the exception of Denmark, to adopt the single currency once they have met the Maastricht convergence criteria;
Amendment 184 #
Motion for a resolution Paragraph 11 11. Advocates, in this context, that policies critical for and conducive to
Amendment 185 #
Motion for a resolution Paragraph 11 11.
Amendment 186 #
Motion for a resolution Paragraph 11 11. Advocates, in this context and where compatible with the EU’s Climate and social goals;, that policies critical for and conducive to
Amendment 187 #
Motion for a resolution Paragraph 11 11. Advocates, in this context, that policies critical for and conducive to strengthening the international role of the euro should target, inter alia, international trade, fiscal and monetary policy mix, financial services and capital market, payments systems, the climate, the digital transformation, energy, and foreign and security policies; highlights that such policies must be pursued with the objective of achieving the general objectives of the Union, as defined in Article 3 TFEU, notably sustainable development, convergence, full employment, and social progress;
Amendment 188 #
Motion for a resolution Paragraph 11 11. Advocates, in this context, that
Amendment 189 #
Motion for a resolution Paragraph 11 11. Advocates, in this context, that in addition to deepening and completing the EMU, policies critical for and conducive to strengthening the international role of the euro should include sound economic policies and target, inter alia, international trade,
Amendment 19 #
Motion for a resolution 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 190 #
Motion for a resolution Paragraph 11 11. Advocates, in this context, that policies critical for and conducive to
Amendment 191 #
Motion for a resolution Paragraph 11 a (new) 11a. Underlines that labour market flexibility is instrumental in creating job opportunities; believes that a structural mismatch between supply and demand for labour hinders recovery and long-term growth and therefore calls for structural reforms to eliminate existing rigidities in the labour market; suggests that such structural reforms could include revising wage-setting mechanisms in order to better reflect productivity developments, enhanced labour mobility and more flexible working patterns;
Amendment 192 #
Motion for a resolution Paragraph 11 a (new) 11a. Considers sustainable finance to be a growth market for the future; deems that by leading in this field, the EU can promote the Euro as a global currency; applauds in this context that, according to the ECB, in 2019 over half of the green bonds issued globally were issued in Euros and welcomes the development of a Green Bond Standard to maintain leadership in this field
Amendment 193 #
Motion for a resolution Paragraph 11 a (new) 11a. Notes that strong and competitive financial markets are key in strengthening the international role of a currency, therefore underlines the need for effective, proportionate and predictable regulation thereof;
Amendment 194 #
Motion for a resolution Paragraph 11 a (new) 11a. Points out that a higher share of energy contracts being traded in Euro could enhance the international role of the Single currency and is therefore supportive of policies furthering that goal;
Amendment 195 #
Motion for a resolution Paragraph 12 12. Notes that the global prominence of a currency is directly linked to the role that the issuing country has in global trade;
Amendment 196 #
Motion for a resolution Paragraph 12 12. Notes that the global prominence of a currency is directly linked to the role that the issuing country has in global trade;
Amendment 197 #
Motion for a resolution Paragraph 12 12. Notes that the global prominence of a currency is directly linked to the role that the issuing country has in global trade; stresses that the EU, as one of the world’s largest trading blocs,
Amendment 198 #
Motion for a resolution Paragraph 12 a (new) 12a. Stresses in that regard the importance of global green energy and commodity markets as forerunners for globally traded goods denominated in euro, where hydrogen and EUAs under the EU-ETS help strengthening the role of the euro in international trade, as well as achieving the EU climate objectives; further calls for action to facilitate new innovative contracts, in particular related to sustainable energy sources and nascent energy markets, which will provide an opportunity for more energy contracts to be traded in euro, strengthening, thus, the international role of the euro; encourages the Commission to continue conducting consultation and studies aiming at identifying the potential to increase the use and role of euro in other sectors, notably with transport means, including in particular aircraft manufacturing, agriculture and food commodities, or metals and minerals; to further support and promote the use of euro for this type of contracts, calls the Commission, in addition to private engagement, to revisit the financial market rules, including MiFID and Benchmarks Regulations;
Amendment 199 #
Motion for a resolution Paragraph 12 a (new) 12a. Notes different approaches to organising the monetary architecture of a multi-polar world economy, including alternatives to the unilateralist approach of trying to become stronger in a zero-sum game of currency competition; observes that more cooperative approaches could exist for addressing imbalances in the global financial system through institution building, such as strengthening the role of the IMF's special drawing rights or Keynes' idea of an international clearing union; suggests that the EU engage in a fundamental debate over what kind of approach would be most suitable to achieving the twin goals of improving the wellbeing of European citizens as defined in Article 3 TEU and of promoting an international system based on stronger multilateral cooperation and good global governance as defined in Article 21 TEU;
Amendment 2 #
Motion for a resolution Citation 3 a (new) — having regard to the Paris Agreement of the United Nations Framework Convention on Climate Change and the Sustainable Development Goals;
Amendment 20 #
Motion for a resolution 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, yet it is still
Amendment 200 #
Motion for a resolution Paragraph 12 a (new) 12a. Stresses the importance of the attainment of price stability targets and the credibility of monetary policy for the attractiveness of the euro as an international currency; notes that the target for inflation has not been systematically attained and further efforts are needed; highlights the effects of ECB’s monetary policy on the stability of financial markets and its significance for the international role of the euro;
Amendment 201 #
Motion for a resolution Paragraph 12 a (new) 12a. Recalls that one of the main objectives of the euro is to improve the level of protection of its citizens and businesses; stresses that a wider worldwide use of the euro would reduce the costs and risks borne by European businesses and households;
Amendment 202 #
Motion for a resolution Paragraph 12 a (new) 12a. Calls on further actions to support the development of euro-benchmarks for commodity markets, and reinforce the role of the euro as a reference currency;
Amendment 203 #
Motion for a resolution Paragraph 12 b (new) 12b. Recalls that Article 208(1) TFEU requires that the Union shall take account of the objectives of development cooperation in the policies that it implements which are likely to affect developing countries; suggests to monitor the policy implications of the international use of the euro at both the multilateral and the regional level and in particular how it affects international development cooperation; stresses in particular the need to assess how the peg to the euro in developing countries affects the economy and long-term prospects for sustainable development 1a; _________________ 1aUse of a currency as an anchor to peg one’s local currency to is one dimension of the international role of a currency. See papers by Beckmann et al. and Macchiarelli.
Amendment 204 #
Motion for a resolution Paragraph 12 b (new) 12b. Holds that the European Commission could further promote the use of the euro in trade pricing and invoicing, and promote euro-denominated investments, by maintaining an open dialogue with private and public stakeholders, national authorities and institutional investors, providing comprehensive knowledge and understanding for its initiatives and various efforts aimed at reinforcing the attractiveness and resilience of the euro area and the euro;
Amendment 205 #
Motion for a resolution Paragraph 12 b (new) 12b. Calls on the industry to develop a clear process to reduce their exposures and reliance on UK CCPs that are systemically important for the Union, in particular for OTC derivative exposures that are denominated in euro and other Union currencies;
Amendment 206 #
Motion for a resolution Paragraph 12 c (new) 12c. Finds merit in maximizing the impact of European economic diplomacy by engaging in regular exchanges with G20 partners, as well as neighbourhood and enlargement countries, to identify concrete policy actions of mutual interest;
Amendment 207 #
Motion for a resolution Paragraph 12 c (new) 12c. Believes that the international role of the euro is a topic that also has a foreign policy dimension; would therefore welcome discussion inputs from the Union’s foreign policy community;
Amendment 208 #
Motion for a resolution Paragraph 12 d (new) 12d. Recognises that the market for centralised clearing is highly concentrated, in particular the market for the clearing of euro denominated interest rate derivatives which heavily depends on UK CCPs; takes note of the recently adopted time-limited equivalence decision of the Commission for UK CCPs and encourages the industry to follow the European Commission’s call to reduce their excessive exposures to UK CCPs promptly; supports in that regard the efforts of the EU CCPs to build up their clearing capability as well as the efforts of the European Commission, the European Supervisory Authority and the European Central Bank to assist the industry in identifying and addressing in the coming months any technical impediment to the transfer of a significant part of the excessive exposure it has to UK CCPs into the EU;
Amendment 209 #
Motion for a resolution Paragraph 13 13. Stresses the role the ECB plays in maintaining trust in the euro and safeguarding monetary sovereignty;
Amendment 21 #
Motion for a resolution 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, yet it is still ahead of all other
Amendment 210 #
Motion for a resolution Paragraph 13 13. Stresses the role the ECB plays in maintaining trust in the euro and safeguarding monetary
Amendment 211 #
Motion for a resolution Paragraph 13 13. Stresses the role the ECB plays in maintaining trust in the euro and safeguarding monetary sovereignty; welcomes the prompt measures put in place by the ECB in order to cater for euro liquidity; underlines the prominence of swap arrangements and repo lines in enhancing the international role of the euro; Calls on the ECB to explore ways of strengthening the international role of the euro, as this would increase the EU’s ability to frame its policy stance independently vis-à-vis other global powers and is a key element in safeguarding European economic sovereignty; notes that making the euro more attractive as a reserve currency will further enhance its international use.
Amendment 212 #
Motion for a resolution Paragraph 13 13. Stresses the role the ECB plays in maintaining trust in the euro and safeguarding monetary sovereignty; highlights that a currency that maintains a stable value over the long term fosters such trust; welcomes the prompt measures put in place by the ECB in order to cater for euro liquidity; underlines the prominence of swap arrangements and repo lines in enhancing the international role of the euro;
Amendment 213 #
Motion for a resolution Paragraph 13 13. Stresses the role the ECB plays in maintaining trust in the euro
Amendment 214 #
Motion for a resolution Paragraph 14 14. Stresses that, besides its primary mandate of maintaining price stability and its secondary mandate of supporting the general economic policies in the Union with a view to contributing to the achievement of the objectives of the Union as laid down in Article 3 of the Treaty on European Union, the ECB is tasked with promoting the smooth operation of payment systems; underlines the importance of having autonomous European payment solutions; calls on the ECB to ensure an adequate balance between financial innovation and stability
Amendment 215 #
Motion for a resolution Paragraph 14 14. Stresses that, besides its primary mandate of maintaining price stability and its secondary mandate of supporting the general economic policies in the Union, the ECB is tasked with promoting the smooth operation of payment systems; underlines the importance of having autonomous European payment solutions; calls on the ECB to ensure an adequate balance between financial innovation and stability and consumer protection;
Amendment 216 #
Motion for a resolution Paragraph 14 14. Stresses that, besides its primary mandate of maintaining price stability, the ECB is tasked with other secondary objectives, including promoting the smooth operation of payment systems; underlines the importance of having autonomous European payment solutions; calls on the ECB to ensure an adequate balance between financial innovation and stability;
Amendment 217 #
Motion for a resolution Paragraph 14 14. Stresses that, besides its primary mandate of maintaining price stability, the ECB is tasked with promoting the smooth operation of payment systems; underlines the importance of
Amendment 218 #
Motion for a resolution Paragraph 14 a (new) 14a. Stresses that having to comply with margin calls from European central counterparties after the closing time of TARGET2 with non-euro currencies puts European banks at a considerable disadvantage, especially in times of market stress such as the early weeks of COVID-19; underlines that the extension of opening hours of TARGET2 to match exchange opening hours would strengthen the role of the euro and the autonomy of European capital markets; welcomes the consolidation of TARGET2- T2S with extended openings hours as scheduled for November 2022; urges the ECB and other stakeholders to continue their efforts for the success of European capital markets; suggests that an extension of openings hours of TARGET2 should be considered as a temporary solution until November 2022.
Amendment 219 #
Motion for a resolution Paragraph 14 a (new) 14a. Stresses the stability of financial markets in the Euro-area as a precondition for international currency status; highlights that the Euro-area faces significant challenges related to climate change, cybersecurity, money laundering and terrorism financing, as well as geopolitical challenges including Brexit that may impact financial stability; calls for further initiatives aimed at reducing these risks;
Amendment 22 #
Motion for a resolution Recital B a (new) Ba. whereas the euro's global potential has not been fully reached, and its benefits are shared unevenly among the Eurozone members;
Amendment 220 #
Motion for a resolution Paragraph 15 15. Takes note of the ECB report on the digital euro, and of the
Amendment 221 #
Motion for a resolution Paragraph 15 15. Takes note of the ECB report on the digital euro, and of the value a digital currency can add in strengthening the international role of the euro; takes note of the ongoing work and experiences of central banks and other organisations in regard to crypto-assets; stresses the importance of monitoring the development of crypto-assets and the increased risks for economic sovereignty and cyber-security; supports the ECB’s efforts in ensuring a high level of cyber resilience;
Amendment 222 #
Motion for a resolution Paragraph 15 15. Takes note of the ECB report on the digital euro, and of the value a digital currency can add in strengthening the international role of the euro;
Amendment 223 #
Motion for a resolution Paragraph 15 15. Takes note of the ECB report on the digital euro, and of the value a digital currency can add in strengthening the international role of the euro; supports the ECB’s efforts in ensuring a high level of cyber resilience; calls for assessment to continue of the benefits and drawbacks of the use of digital currency with a view to achieving a balance between global competitiveness, innovation, security and privacy;
Amendment 224 #
Motion for a resolution Paragraph 15 15. Takes note of the ECB report on the digital
Amendment 225 #
Motion for a resolution Paragraph 15 15.
Amendment 226 #
Motion for a resolution Paragraph 15 15. Takes note of the ECB report on the digital euro,
Amendment 227 #
Motion for a resolution Paragraph 15 a (new) 15a. Calls on the Commission to put forward a comprehensive strategy to strengthen Europe’s economic and financial autonomy; building on the efforts to strengthen the international role of the euro;
Amendment 228 #
Motion for a resolution Paragraph 16 – subparagraph 1 (new) Stresses the need to create a euro-area budgetary capacity along with the role of a European Minister of Economy and Finance, in line with the Commission Communication of 6 December 2017.
Amendment 23 #
Motion for a resolution 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 to multilateralism – lead to a multipolar world economy, thus paving the way for a potential shift towards a multicurrency reserve system where the euro
Amendment 24 #
Motion for a resolution Recital C C. whereas current geopolitical
Amendment 25 #
Motion for a resolution 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
Amendment 26 #
Motion for a resolution 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
Amendment 27 #
Motion for a resolution Recital C a (new) Ca. whereas the potential shift towards a multicurrency reserve system is threatened by ultra-accommodative monetary policies of the major central banks, which leads to an unprecedented inflation of the money supply and could undermine consumers' and investors' trust in traditional fiat currencies;
Amendment 28 #
Ca. whereas the economies and citizens of developing countries suffer from instability in the international monetary system and a lack of control over exchange rates and interest rate fluctuations in international trade and reserve currencies;
Amendment 29 #
Motion for a resolution Recital C a (new) Ca. whereas the euro, whilst being the second most internationally traded currency after the USD, is still lagging behind in some of the key functions of an international currency, such as its role as a reference for official and private use;
Amendment 3 #
Motion for a resolution Citation 4 a (new) — having regard to the Commission Implementing Decision (EU) 2020/1308 of 21 September 2020, notably its recitals (5) and (6)
Amendment 30 #
Motion for a resolution Recital C a (new) Ca. whereas a stronger role of the euro, and its increased use as a reserve currency, would increase the ability of the EU to frame its policy stance vis-a-vis other countries and regions;
Amendment 31 #
Motion for a resolution Recital C b (new) Cb. whereas a greater role for the euro would provide a higher degree of financial autonomy to the euro area, protecting it from the use of other currencies as foreign policy tools by other national administrations;
Amendment 32 #
Motion for a resolution Recital D Amendment 33 #
Motion for a resolution Recital D D. whereas the EU should protect the integrity of its financial infrastructures and the independence of its market operators against foreign policy unilateralism and potential extraterritorial sanctions by third country jurisdictions
Amendment 34 #
Motion for a resolution Recital D D. whereas the EU should protect the integrity of its financial infrastructures
Amendment 35 #
Motion for a resolution Recital E E. whereas while the decision to use a currency is ultimately determined by market participant preference, confidence in the stability of a currency is a crucial component that influences their choices and an important criterion for central banks and governments in determining the composition of their international reserves; whereas confidence in the stability of a currency is heavily undermined by ultra- accommodative monetary policies, which leads to a massive increase in the money supply, which is demonstrated by an depreciating euro, despite increases in M1 and M3;
Amendment 36 #
Motion for a resolution Recital E E. whereas while the decision to use a currency is ultimately determined by market participants' preferences, confidence in the stability of currency is a crucial component that influences their choices and an important criterion for central banks and governments in determining the composition of their international reserves;
Amendment 37 #
Ea. whereas a broad combination of factors determines the role of international currency; on the one hand the size of the euro area economy and free movement of capital fulfil basic prerequisites allowing to strengthen international role of euro, while on the other hand financial and capital markets remain fragmented and heavily bank based, fiscal architecture of the euro area is incomplete and a reliable supply of high quality assets to be used by global investors is inadequate;
Amendment 38 #
Motion for a resolution Recital E a (new) Ea. whereas the stability of a currency is also determined by the stability of the institutions behind it, more European integration is necessary to give additional institutional and political stability behind the euro;
Amendment 39 #
Motion for a resolution Recital E b (new) Eb. whereas the pandemic situation has accelerated the digital transformation of finance, to underpin a strong international role of the Euro it is important that Europe develops digital finance and payments, with strong European players in the lead;
Amendment 4 #
Motion for a resolution Citation 4 a (new) — having regard to Article 21 TEU and Articles 119, 127 and 208(1) TFEU;
Amendment 40 #
Motion for a resolution Recital E b (new) Eb. whereas in the long run the attractiveness of a given currency is also determined by the vitality of its economy;
Amendment 41 #
Motion for a resolution Recital F Amendment 42 #
Motion for a resolution Recital F F. whereas Brexit brings structural changes to the EU financial system and its stability, intensifying the need
Amendment 43 #
Motion for a resolution Recital F F. whereas
Amendment 44 #
Motion for a resolution Recital F F. whereas Brexit brings structural changes to the EU financial system and its stability, intensifying the need to continue developing the EU’s capital markets, to avoid market fragmentation, to compete globally and making the EU a more attractive market and to maintain a global and cooperative mindset, while consolidating its emerging polycentric financial and capital market system;
Amendment 45 #
Motion for a resolution Recital F F. whereas Brexit brings structural changes to the EU financial system and its stability, intensifying the need to continue developing the EU’s capital markets, to avoid market fragmentation and to maintain a global and cooperative mindset, while consolidating its emerging polycentric financial and capital market system; whereas considerable attention shall be given to ensure that any Brexit- induced polycentric system does not evolve into financial fragmentation;
Amendment 46 #
Motion for a resolution Recital F F. whereas Brexit brings structural changes to the EU financial system and its stability, intensifying the need to continue developing the EU’s capital markets, to avoid market fragmentation and to maintain a global and cooperative mindset, while consolidating its emerging polycentric financial and capital market system; whereas scaling down of the reliance on United Kingdom market infrastructures is paramount to strengthening the international role of the euro;
Amendment 47 #
Motion for a resolution Recital F a (new) Fa. whereas European financial culture is deeply rooted in traditional banking, which protects European consumers and investors against domestic and foreign speculators on financial markets; whereas this European financial culture deserves to be maintained;
Amendment 48 #
Motion for a resolution Recital F a (new) Fa. whereas the Covid-19 crisis has provided renewed focus on the argument of the greater international role of the euro;
Amendment 49 #
Motion for a resolution Recital H H. whereas post-pandemic economic recovery requires the fast implementation of the EU recovery plan, which
Amendment 5 #
Motion for a resolution Citation 5 a (new) — having regard to its resolution of 12 April 2016 on the EU role in the framework of international financial, monetary and regulatory institutions and bodies
Amendment 50 #
Motion for a resolution Recital H H. whereas post-pandemic economic recovery requires
Amendment 51 #
Motion for a resolution 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 sustainable growth and competitiveness, in line with the objectives of the European Green Deal, the Paris Agreement and the Sustainable Development Goals; 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 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 not only the social and economic recovery of the Union but also the attractiveness of the euro as an international currency;
Amendment 52 #
Motion for a resolution 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 the recently- proposed recovery fund is an excellent example of what is needed as a European fiscal response to build confidence among investors; whereas a meaningful fiscal stimulus, in conjunction with a monetary one – including a joint European effort –, will 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 53 #
Motion for a resolution 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
Amendment 54 #
Motion for a resolution 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 55 #
Motion for a resolution 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, upward convergence 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 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 56 #
Motion for a resolution Recital H a (new) Ha. whereas the crisis has generated a unique opportunity to move towards developing a digital euro, which will make the European currency better fit for the digital world, enabling the euro to expand in the area of digital payments, becoming easier to use, less costly and more efficient;
Amendment 57 #
Motion for a resolution Recital H a (new) Ha. whereas the bond issuance that goes together with the recovery fund will allow global investors to get exposure to the euro area as a whole also establishing a genuine euro-area yield curve;
Amendment 58 #
Motion for a resolution Recital H a (new) Ha. whereas in some strategic markets, such as markets for raw materials, many European companies still do not choose the euro as a reference currency for pricing and trading;
Amendment 59 #
Motion for a resolution Recital H b (new) Hb. whereas the ECB’s pandemic emergency purchase programme is a decisive element to maintain price stability and ensure stable sources of funding for the euro area economy;
Amendment 6 #
Motion for a resolution Citation 7 a (new) — having regard to its resolution of 13 November 2020 on the Sustainable Europe Investment Plan - How to finance the Green Deal
Amendment 60 #
Motion for a resolution Recital I I. whereas
Amendment 61 #
Motion for a resolution Recital I I. whereas new powers to temporarily issue recovery debt, including green bonds – which make the EU the world’s biggest issuer of such debt –, require adequate implementation and strict enforcement
Amendment 62 #
Motion for a resolution Recital I I. whereas new powers to issue recovery debt, including green bonds – which make the EU the world’s biggest issuer of such debt –
Amendment 63 #
Motion for a resolution Recital I I. whereas new powers to issue recovery debt, including green and social bonds – which make the EU the world’s biggest issuer of such debt –, require adequate implementation and enforcement capacities so as to avoid undermining the long-term credibility of the euro as a safe asset currency;
Amendment 64 #
Motion for a resolution Recital I I. whereas new powers to issue recovery debt, including green bonds – which could make the EU the world’s biggest issuer of such debt –, require adequate implementation and enforcement capacities so as to avoid undermining the long-term credibility of the euro as a safe asset currency;
Amendment 65 #
Motion for a resolution Recital J J. whereas
Amendment 66 #
Motion for a resolution Recital J J. whereas while the wider use of an international currency bears privileges and gains, it also implies global responsibilities, dependencies and costs, which should be taken into consideration in the development of ambitious monetary policies intended to make the euro more competitive;
Amendment 67 #
Motion for a resolution Recital J J. whereas while the wider use of an international currency bears privileges and gains, it also implies global responsibilities, dependencies, risks and costs;
Amendment 68 #
Motion for a resolution Recital J J. whereas while the wider use of an international currency bears
Amendment 69 #
Motion for a resolution Recital J J. whereas while the wider use of an international currency bears privileges and gains, it also implies global responsibilities
Amendment 7 #
Motion for a resolution Citation 14 a (new) - having regard to ‘A Theory of Optimum Currency Areas’ by Robert Mundell,1a _________________ 1a https://www.jstor.org/stable/1812792?seq= 1
Amendment 70 #
Motion for a resolution Recital J a (new) Ja. whereas, historically, countries issuing dominant currencies have been characterised by a large and growing economy, free movement of capital, a willingness to play an international role, stability, an ability to provide a large and elastic supply of safe assets, developed financial markets, and significant geopolitical and/or military power; whereas the EMU does not meet all these criteria;
Amendment 71 #
Motion for a resolution Recital J a (new) Ja. whereas the USA enjoys the benefits of issuing large amounts of debt securities that are considered on markets around the world as risk free;
Amendment 72 #
Motion for a resolution Recital J b (new) Jb. whereas the ECB's own international role of the euro summary composite index suggests that the rise of the euro as an international currency peaked as early as 2005; whereas, thereafter, its internationalisation went into reverse, and the euro has not since returned to its previous status;
Amendment 73 #
Motion for a resolution Recital J b (new) Jb. whereas the USA can benefit from the so-called dollar’s “exorbitant privilege” and benefit from seigniorage and the ability to sell government securities at low interest rates to fund a large increase in spending;
Amendment 74 #
Motion for a resolution Recital J c (new) Jc. whereas American companies have enjoyed the stability that comes from being able to conduct international transactions in their own currency;
Amendment 75 #
Motion for a resolution Recital K Amendment 76 #
Motion for a resolution Recital K K. whereas market-driven shifts towards strengthening the international role
Amendment 77 #
Motion for a resolution Recital K K. whereas market-driven shifts towards strengthening the international role of the euro require targeted facilitating policies, both at EU and member state level, that are aligned with this objective and that are part of a comprehensive road map;
Amendment 78 #
Motion for a resolution Recital K a (new) Amendment 79 #
Motion for a resolution Recital K a (new) Ka. whereas, under the theory of optimal currency areas, such regions have the advantages of increased transparency and decreasing transaction costs, but are constrained by a monetary policy that is less focused on addressing regional differences;
Amendment 8 #
Motion for a resolution Citation 15 — having regard to the blog post from Bruegel of 5 June 2020 entitled ‘Is the COVID-19 crisis an opportunity to boost the euro as a global currency?’,
Amendment 80 #
Motion for a resolution Recital K a (new) Ka. whereas the right mix of fiscal and monetary policy is needed to build a deeper and better more stable EMU, necessary to increase the euro’s influence and the benefits that accrue to euro area members;
Amendment 81 #
Motion for a resolution Recital K a (new) Ka. whereas the long-term international role of the Euro will largely depend on the Eurozone's attractiveness as a location to do business and the soundness of the Member States' fiscal policies;
Amendment 82 #
Motion for a resolution Recital K a (new) Ka. whereas the purpose of any policy of strengthening the euro should have as its core aim the improvement of the lives of people living in Europe and throughout the world.
Amendment 83 #
Motion for a resolution Recital K b (new) Kb. whereas the variables relevant for European monetary policy, such as economic growth, unemployment and consumer price trends, are very heterogeneous within the EU;
Amendment 84 #
Motion for a resolution Subheading 1 C
Amendment 85 #
Motion for a resolution 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
Amendment 86 #
Motion for a resolution 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
Amendment 87 #
Motion for a resolution Paragraph 1 1. Considers that, while not all the effects of the internationalisation of the euro can be easily quantified, 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
Amendment 88 #
Motion for a resolution Paragraph 1 1. Considers that strengthening the international role of the euro can
Amendment 89 #
Motion for a resolution Paragraph 1 1. Considers that
Amendment 9 #
— having regard to the
Amendment 90 #
Motion for a resolution Paragraph 1 a (new) 1a. Underlines that a stronger euro will provide additional choice to market operators globally; gradually create deeper, more liquid and integrated European financial markets, which would provide for more reliable access to finance for European business and governments; improving in turn the overall resilience of the international financial system and economy, making them less vulnerable to exchange rate shocks; stresses that for those benefits to materialize a well-orchestrated policy efforts at European and national levels are needed, including contribution from ECB, SRB, ESAs, EIB.
Amendment 91 #
Motion for a resolution Paragraph 1 b (new) 1b. Contemplates that the internationalisation of the euro could become a key factor in laying the foundation for a revitalised international monetary system, which will continue to rely on a limited number of currencies, making it more balanced and sustainable;
Amendment 92 #
Motion for a resolution Paragraph 2 2. Points out that, in order for the potential benefits from the strengthened role of the euro to materialise, the Union has to
Amendment 93 #
Motion for a resolution Paragraph 2 2.
Amendment 94 #
Motion for a resolution Paragraph 2 2. Points out that, in order for the potential benefits from the strengthened role of the euro to materialise, the Union has to complete the as yet unfinished infrastructure for the common currency and make more progress on its critical functions; adds, however, that too much heterogeneity in levels of competitiveness and economic development within the currency area belies risks and, therefore, that the euro should not be introduced precipitately into other countries;
Amendment 95 #
Motion for a resolution Paragraph 2 2. Points out that, in order for the potential benefits from the strengthened role of the euro to materialise, the Union has to
Amendment 96 #
Motion for a resolution Paragraph 2 2. Points out that, in order for the potential benefits from the strengthened role of the euro to materialise, the Union has to complete the
Amendment 97 #
Motion for a resolution Paragraph 2 a (new) 2a. Stresses the need for the euro to be used to the benefit of employment, industrial policy and the Member States’ economies; points out that, to fulfil its role effectively, a single currency cannot function without a common budget or transfers between Member States.
Amendment 98 #
Motion for a resolution Paragraph 3 Amendment 99 #
Motion for a resolution Paragraph 3 source: 663.042
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History
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