How the Euro Can Become a Global Powerhouse

The euro is on the table for a major upgrade. Euro zone finance ministers are gathering to brainstorm ways to give the euro more clout on the world stage. The goal? To make Europe less dependent on the economic whims of the U.S. and China.

Key Proposals

1. Tearing Down Internal Trade Barriers

• Current barriers act as hidden taxes.
• IMF estimates these barriers are equivalent to a 44% tariff on goods and 110% on services.

2. Single Set of Rules for Businesses

• Proposal: Create the 28th Regime.
• Current situation: 27 different rulebooks for one region.

3. Europe-wide Bank Deposit Guarantee Scheme

• Uniform protection for savers across the EU.
• Aims to build trust and encourage savings and investments.

4. Capital Markets Union

• Free up around 10 trillion euros in idle bank deposits.
• Potential investments in green energy, digital tech, and biotechnology.

5. Euro Zone Bailout Fund Makeover

• Transform the European Stability Mechanism (ESM) into an EU institution.
• Handle joint debt and provide a safety net for all EU countries.

6. Issuing More Joint EU Debt

• Deepen the market for EU bonds.
• Make euro-denominated instruments more attractive to investors.

7. Digital Euro

• Allow Europeans to pay for online purchases without relying on U.S. companies.
• Give Europe more control over digital payment systems.

8. Euro-denominated Digital Assets

• Shift stablecoin market from dollars to euros.
• Draw more investment to Europe.

9. Euro as the Go-to Currency for Big-ticket Items

• Encourage third countries to issue euro-denominated debt.
• Boost the euro's global role.

10. More Euro Liquidity Lines

• European Central Bank to provide more euro liquidity to central banks and market players worldwide.
• Make the euro more accessible and attractive for global trade and investment.