Euro, consolidating its position as the world's second largest currency in 2025

Margins for growth of the euro's role in the world are there, but to strengthen the standing and appeal of the euro in the world, the EU will have to do more: finalise the union of investment and savings and capital markets and increase the common debt with issues of euro-denominated safe assets. Defending the rule of law.

The Report emphasises the strengths of the euro. In 2025, international euro bond issuance reached its highest level since the introduction of the single currency, increasing by around 30% compared to 2024.

The euro also became the dominant currency in the international green and sustainable bond market for the first time in 2025. Inflows of foreign investment into the euro area were close to historical highs. And the use of the euro in exports of services outside the euro area increased.

The ECB points out, however, that the fragmentation of the international monetary system is increasing: "signs of fragility are beginning to emerge".

And in this regard, the use of l renmimbi and bitcoin by some ships to transit the Strait of Hormuz is reported.

Rising geopolitical tensions meanwhile increased central bank purchases.

The euro, reading the Report, does not yet seem to have achieved the widespread standing of a safe haven asset used on a global scale.

In the Report, the share of the euro as the remaining reserve currency is reported to be stable, at around 20%, while the share of the US dollar as the global reserve currency declined from 70% in 2000 to 57% in 2025.

This means that margins for growth in the use of the euro in the world are there, but to expand the global standing and appeal of the single European currency, the Report emphasises that the EU will have to do more and faster, by achieving at least three strategic objectives: "complete the investment and savings union", "increase the joint financing of public assets to create a safe and liquid pool of EU public debt" by creating a true market for liquid and deep European safe assets like the US Treasuries.

"Safeguarding investor confidence in the institutions and policies that support the euro, including through respect for the rule of law". In an international context where democratic values are increasingly under attack.

In the meantime, the ECB is playing its role in strengthening the position and reputation of the euro in the world: the European Central Bank maintains its independence and ensures price stability, it issues a currency that in addition to cash is preparing for the digital age by issuing the digital euro for retail payments and the tokenized euro for wholesale DLT transactions.

Finally, the ECB is offering a liquidity parachute on an international scale with the new enhanced Eurep (Eurosystem repo facility).