EN Official Journal of the European Union CE 84/869

(2004/C 84 E/0962)

WRITTEN QUESTION E-0753/04

by José García-Margallo y Marfil (PPE-DE) to the Commission

(11 March 2004)

Subject: Promotion of the international role of the euro in transactions between eurozone countries and third countries

The Commission has always shown little interest in promoting the use of the euro in major transactions with third countries, particularly those relating to the supply of raw materials.

Despite the limited role which the Commission could play in this connection, there can be no doubt that an increased use of the euro in transactions of this kind would reduce the cost of products in Europe and at the same time increase the competitiveness of products and the European economy.

Has the time not come for the Commission to abandon its neutral position, which has been frequently misunderstood by third countries, as these sometimes interpret the Commission's attitude as a certain denial of the European currency, or at least as a lack of interest by the Commission in the European currency which, in addition to being a means of exchange between the 12 EU Member States, is also an international exchange and reserve currency?

As part of the implementation of its budgetary commitments, does the Commission have any specific plans for campaigns to promote the euro in the new accession countries in order to encourage use of the euro in transactions between these countries and the eurozone countries, given that this would reduce the cost of such transactions, in particular with the networks of chambers of commerce and industry?

Answer given by Mr Solbes Mira on behalf of the Commission

(6 April 2004)

The international use of the euro has gradually increased since its introduction. In 2003, the euro represented 31 % of international bond issues, 23 % of foreign exchange settlements and 19 % of official foreign exchange reserves. The euro also plays a significant role in trade in non-euro area countries that have strong ties with the euro area. Finally, it serves as an anchor currency in exchange rate regimes of a number of countries, mainly in Europe, northern Africa and the French African Community (CFA) Franc Zone.

The fact that the bulk of international commodity trade is denominated in US Dollars (USD) does not automatically imply that denomination of these imports in euro would reduce their price or price variability. For crude oil, for example, in the past three decades, exchange rate movements have sometimes played to the advantage of European importers and sometimes to their disadvantage.

The best contribution policy can make — and is indeed making — in order for markets to increasingly adopt the euro at the international scale is to improve the euro's usefulness in the three functions of means of payment, unit of account and store of value. The European Central Bank's (ECB) stability-oriented monetary framework and efforts to improve financial market (infra-) structure and to harmonize financial market regulations thus strengthen the euro's international perspectives. Furthermore, progress on the external representation front would also no doubt increase the international status of the euro. Finally, the provision of information to key actors plays an important role.

As regards the 10 acceding Member States, their adhesion to the EU implies their future adoption of the euro when they meet the convergence criteria. For these countries, the euro is already the dominant invoicing currency in their trade. Its use in exports of the ten Acceding Countries for which data is available ranges from 22 % (Cyprus) to 87 % (Slovenia).

Since 2003, the Commission has organised information and communication activities, such as the conference that took place in Warsaw on the subject ‘From accession to adopting the euro’, in which the Parliament participated. Among the structural activities achieved in 2003, there is the preparation of a ‘Framework for a Communication Strategy for the euro and Economic and Monetary Union in 2004 and beyond’ to be implemented in 2004. New Member States are privileged beneficiaries of the activities planned in this strategy. The Commission plans to introduce partnership agreements with these States, which will allow them to progressively integrate experiences with a view to the use of the euro. In addition, information seminars will be organised with Information and Communication Officers from Central Banks and Ministries of Finance of these States. Other groups, including the media, as well as organisations such as chambers of commerce and industry of those countries, are the targeted groups of the Commission's plans to promote and encourage the use of the euro in the new Member States.