The Euro’s International Status after the Financial Crisis and the Sovereign Debt Crisis

The outbreak of the global financial crisis and of the sovereign debt crisis has fuelled discussions as regards new initiatives that could be taken to strengthen economic governance in the euro area and complete Economic and Monetary Union (EMU). Since its introduction in 1999, the euro has been, and still is, the second most important international currency however. The position of the European Central Bank (ECB) vis-à-vis the internationalisation of the euro, i.e. to neither hinder, nor foster the euro’s use outside the euro area, is as old as the ECB itself. And more than 15 years after these discussions, it is striking to observe that a large number of arguments used then, in one direction or the other, remain up-to-date. But the outbreak of the global financial crisis and of the sovereign debt crisis has partly changed the terms of the debate. European authorities may contribute to buttress the euro’s international status indirectly by completing EMU. That this status would grow more important in the period ahead would hence be an indication of their success in completing EMU.