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- The EU’s economic and fiscal rules, including the Stability and Growth Pact, a central component of Economic and Monetary Union, promote economic stability and growth. Second, the euro is the key mechanism for maximising the benefits of the single market, trade policy and political cooperation.
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How big is the EU economy? The European Union operates as a single market made up of 27 countries. The total value of all goods and services produced (gross domestic product or GDP) in the EU in 2021 was € 14.5 trillion.
Reaping the benefits. First, the euro zone economy benefits from prudent management. The EU’s economic and fiscal rules, including the Stability and Growth Pact, a central component of Economic and Monetary Union, promote economic stability and growth.
On 1 January 1999, 11 EU countries fixed their exchange rates, agreed to follow a single monetary policy entrusted to the European Central Bank, and launched their new common currency on world financial markets. Today, around 347 million citizens in 20 countries live in the euro area.
Support for the euro is higher than ever. 75% of people across the euro area say that the euro is good for the EU. 64% also think the euro is good for their own country. Both levels are the highest since surveys began in 2002. THE BENEFITS OF THE EURO FOR BUSINESSES The euro has boosted trade.
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- Overview
- The Euro and The Recovery
- What Does The Euro Mean For Europeans
- Deepening The Economic and Monetary Union
- The Current International Role of The Euro
- The Benefits of An Enhanced International Role For The Euro
- A Deep and Autonomous European Financial Sector
- International Financial Sector
- Euro in Energy and Commodity Markets
On 19 January 2021 the European Commission issued a Communication on the launch of a new strategy to stimulate the openness, strength and resilience of the economic and financial system of the European Union (EU). The Communication includes a series of targeted actions to promote the international role of the euro. Communication on “The European ec...
The euro is the currency of 20 EU countries, over 350 million EU citizens and the second most important currency in the world. It was launched on 1 January 1999. Euro notes and coins are tangible, everyday reminders of the freedom, convenience and opportunities that the European Union makes possible. Learn more on the history of the euro and the Eu...
The issuance of high-quality euro-denominated bonds under NextGenerationEU will add significant depth and liquidity to the EU's capital markets over the coming years and will make them, and the euro, more attractive for investors. Promoting sustainable finance is also an opportunity to develop EU financial markets into a global ‘green finance' hub,...
Public support for the euro remains at very high levels since surveys began in 2002. The latest survey (March 2021) shows that public support for the euro has reached a record high in the euro area. The survey shows the highest overall support for the euro for the fourth consecutive year since the start of these yearly surveys in 2002. When asked w...
A stronger euro relies on a robust institutional set-up of the Economic and Monetary Union, as well as on a resilient EU banking system and liquid capital markets. Further Deepening the Economic and Monetary Union, (completing the Banking Union and developing deep and liquid capital markets through the Capital Markets Union) are necessary to reinfo...
The euro’s success as a stable and credible currency means that it already plays an important role beyond the borders of the EU and the euro area. 1. The European Union’s share of 2020 global gross domestic product amounts to an estimated around 18% (IMF World Economic Outlook). The share of the euro area is estimated to be around 15% 2. The euro i...
A wider global use of the euro can benefit the European economy. 1. Lower cost and lower risk of trading internationally for European businesses.Trading in euro rather than in a foreign currency will remove the exchange risk and other currency related costs especially for small and medium-sized European businesses 2. Additional choice for market op...
European financial markets are crucial for Europe’s economy. These markets are where European businesses and citizens find financing from banks and investors. Financial markets include simple products like a bank loan or equity capital for start-ups to sophisticated derivative products used by banks and businesses to manage their financial risks. T...
In the past 20 years, the euro has become the second most important international currency. Initiatives linked to the international financial sector include 1. supporting Central Banks collaboration to safeguard global financial stability 2. increasing the share of euro denominated debt by European bodies 3. fostering economic diplomacy to promote ...
Commodity markets constitute one of the key aspects of global trading. Since the adoption of the Commission Recommendation on the international role of the euro, in the field of energy there has been significant progress in the use of the euro in the EU gas markets. The share of natural gas contracts signed in euros increased from 38% in 2018 to 64...
Medium-term price stability across the euro area has been achieved since the launch of the euro; and increasingly integrated financial markets have also provided citizens and firms with more opportunities to share risks.
Nov 1, 2021 · The euro was created on Jan. 1, 1999, and it was designed to support economic integration in Europe. The advantages of the euro include promoting trade, encouraging investment, and...
