Advancing Europe's Economic Independence and Digital Future

Europe stands at a critical crossroads as it faces external pressures on its sovereignty and recognizes a growing need for greater economic independence amid shifting global dynamics. Recent developments have underscored the importance of strengthening the euro and reducing the continent’s reliance on non-European providers for vital services, including payments and digital infrastructure.

A strong euro is synonymous with stability—both in purchasing power and through consistent, prudent fiscal policies. Despite volatile exchange rates and concerns over a rising euro, its effective impact on competitiveness and exports has remained moderate when evaluated against a broader basket of currencies. At the same time, global confidence in the US dollar is showing some cracks, prompting conversations about diversifying international reserve assets and the advisability of a larger global role for the euro.

European sovereignty will also be enhanced by deeper integration of financial markets and removal of intra-EU trade barriers, which remain surprisingly high, particularly in services. Facilitating cross-border investments and finalizing a robust Savings and Investments Union will focus Europe’s substantial household savings toward innovation and strategic priorities like green and digital transitions. Strengthening the regulatory framework, especially in the realm of stablecoins and digital assets, remains essential for both fostering innovation and safeguarding financial stability.

Looking forward, the introduction of digital central bank money—both retail and wholesale—represents a pivotal opportunity for the euro to solidify its international standing while making Europe’s financial system more autonomous and resilient. The forthcoming digital euro promises enhanced privacy, accessibility, and independence from non-European payment systems, addressing the evolving needs and preferences of consumers and businesses alike. Progress on digital settlements using distributed ledger technology will push efficiency and automation in large-value transactions, marking a key step toward integrated, future-proof financial infrastructure.

As external uncertainties rise and technological change accelerates, Europe is poised to take control of its destiny by modernizing its payments system, strengthening its economic base, and pursuing greater sovereignty on the global stage. The cohesive pursuit of these goals will help ensure Europe remains competitive, attractive, and independent in the complex financial landscape ahead.