Debate: Formal sitting – th anniversary of the euro
Date: MONDAY, 14 FEBRUARY 2022
Speaker: Christine Lagarde
Language: FR

So, the introduction of the euro banknotes and coins in 2002 was a milestone for European history, as it put – as Nicole Fontaine said – a tangible sign of European integration in the pocket and in the wallets of all Europeans. There were twelve countries only to begin with, and seven more to join later on. Sharing a currency is more than just simply using the same measure, the same means of payment; it is part of a common endeavour. This feeling of shared identity is actually recognised by our fellow citizens. When you ask them, when you ask the European citizens what the European Union means to them, what comes second is actually the euro amongst the list of things that they most often think of in terms of the European Union. The euro has simplified the lives of many Europeans – those who study, those who travel, those who conduct business. It has improved the efficiency of conducting business throughout an enlarged economic zone and I’m going to mention to you two numbers. From 1990 to 2002, trade between the soon—to—be 19 countries of the euro area increased by less than 5% – 5% more trade. If you look at the period since the euro has been introduced, trade between those same nations did not increase by 5% but by 200%. Now, of course not all of it is attributable to the euro, but the fact that the exchange rate was no longer an issue that was to be discussed, put into contractual terms between parties, certainly had a role to play. The second element that I want to bring to your attention as well: as you all know, the euro is the second international currency in the world after the dollar. What maybe not all of us know so well is that in 2021 about half of total green bond issuance around the world was denominated in euros – not necessarily issued from the euro area or Europe, but around the world. So as you mentioned, Madam President, last year we launched the digital euro project. We will investigate how a digital euro could offer a convenient, cost—free means of payment, allowing people to pay anywhere in the euro area with risk—free digital money – for example, when making payments online, which preclude the use of cash. I just would like to add that, of course, this digital euro will not replace cash but it will complement cash. That is one of the reasons why we launched the process of redesigning our banknotes. The redesign is part of a long—term development process to ensure that the next generation of euro banknotes will continue to be secure, accepted and an efficient means of payment. We will keep Parliament informed throughout the process, and we will seek input from citizens, through your intermediary, on the theme and design of the new banknotes before making our final decision in 2024. Thereafter, the rollout of the new banknotes will be planned. The redesign of our banknotes is a unique opportunity to make them more relatable to Europeans of all ages and backgrounds, thereby offering a new symbol of European integration. For more than 20 years, euro banknotes and coins have circulated smoothly. They are a tangible testament to the euro’s success. The cash in our pockets reminds us that, despite our diversity, we share a common endeavour that goes way beyond our borders.