Finance

Commission outlines plan to boost euros global role

EU governments should promote the international role of the euro by underpinning energy agreements and contracts with countries outside the bloc in the single currency.

The European Commission issued the call Wednesday in a “recommendation” that outlines what the bloc should do to give the euro a stronger foothold on the international stage.

The recommendation comes as trade tension with U.S. President Donald Trump continues to threaten the global economy and as the EU considers ways to become less reliant on the U.S. dollar.

A communication attached to the recommendation notes companies use the dollar 80 percent of the time to price and pay for their transactions in the energy industry. Investors also use the U.S. currency to underpin a lot of derivative trades.

To help tip the scales in the euros favor, the Commission said it plans to launch a series of public consultations by next summer.

One consultation will focus on how to promote the euro in contracts for oil and gas transactions. The second is set to explore the aircraft industry and a third for the market for raw materials.

The Commission referred to another consultation that would explore how to promote the euro in foreign exchange markets.

But the Commission acknowledged that the euro is still young and the eurozone still needs to integrate further before its currency can be taken more seriously.

“Progress on the completion of the Economic and Monetary Union is … not only needed to promote growth and stability at home, it is also an important project to underpin our European autonomy in a globalized world,” said Pierre Moscovici, the Commissions chief for economic and financial affairs.

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