Euro zone finance ministers will meet on Monday to discuss enhancing the global role of the euro to improve Europe’s competitiveness against the U. S. and China. The European Commission has proposed several actions for discussion.
First, removing internal trade barriers within the 27-nation European Union, which currently resemble high tariffs on goods and services. Second, introducing a single regulatory framework for companies across the EU, known as the 28th Regime, to streamline operations under one set of rules. Third, agreeing on an EU-wide bank deposit guarantee scheme to ensure uniform protection for savers across different banks.
Additionally, creating a capital markets union aims to mobilize significant idle funds for investment in key sectors like green energy and technology. Transforming the Euro Zone bailout fund into a broader EU institution to manage joint debt is also suggested. Issuing more collective EU debt would help make the euro more appealing for investors.
The proposal includes launching a digital euro for online payments, developing euro-denominated digital assets to capture more market share, and advocating for the euro as the currency for invoices in essential sectors. Encouraging third countries to issue euro debt and providing euro liquidity lines globally are also part of the plan.
With information from Reuters
