Ref. Ares(2019)6546201 - 23/10/2019
x There are clear benefits of an increased role of the euro and also stronger
responsibilities attached to it. For instance, European businesses would benefit from
lower costs and more robust access to funding even in periods of market tensions.
We would also be able to better protect our citizens and businesses from unilateral
decisions by some third countries.
x At the same time, greater use of the euro abroad renders the conduct of economic
policies more complex. We can and must overcome these complexities to reap the
benefits from a stronger global currency.
x For that purpose the Commission proposes to take concrete actions to render the
euro more attractive to market participants, who ultimately decide which currency to
use in their operations.
x Completing the architecture of the Economic and Monetary Union, in particular the
Capital Markets Union and the Banking Union and taking relevant steps as concerns
the Fiscal and Economic Union, are necessary to overcome remaining
vulnerabilities and reinforce Europe’s economic and financial sovereignty.
x Confidence in the value of the euro is ensured by the predictability and credibility of
our monetary and economic policies, as well as through the medium- and long-term
growth prospects for the euro area.
x By improving economic resilience and boosting growth potential, initiatives seeking
to deepen the Economic and Monetary Union can support the attractiveness of the
euro to international investors. We hope we have the full
support of Airbus on this
important project. We must work together to help overcome national red lines.
x We understand that there are several factors explaining the
marginal use of the
euro in key sectors, such as the aircraft industry. Since fuel prices are quoted in
dollars, this influences the currency used in the entire value chain. Moreover, the
aircraft market, including insurance and maintenance, is a global market that does
not allow regional price differentiation.
x Our intention is to launch a
consultation to investigate possible actions to
promote the use of the euro by
transport sector manufacturers. The consultation
will explore in more detail the reasons why the euro is not used for many of the most
relevant international transactions and will help identifying conditions that would
enable the promotion of the euro in transactions with European businesses.
x I understand that there is an industry reluctance to move away from the use of US
dol ars but we also know that the use of the euro has some clear advantages.
x When we did a survey through our Joint Research Center in 2015/2016, we found
that:
transactions in US dollars made with some countries may create uncertainty
due to the sanction regimes (e.g. Iran, Russia);
invoicing is made in US dollars even for transactions within the euro area with
European clients. Would it not make sense to extend the use of the euro in
parts of the value chain, which are purely European?
x The Commission wants to identify al possible options to improve the use of the euro
in aircraft sales. In this respect, I very much welcome your input, and would like to
hear your views on the kind of actions (incentives, regulations or other) that might be
needed.
Contact – briefing coordination:
Steering brief
3/3