From today, the nations that make up the European Union have been meeting debating the economic and conjunctural axes they are going through. This Friday, the Euro Summit will take place. The Summit will be attended by the Heads of State of the euro area countries, the President of the Euro Summit and the President of the European Commission.
The main objective of this meeting will be to establish and carry out the agenda that outlines the work to be done to increase the weight of the euro as an international reference currency, this being part of the main objective of the Euro Summit.
The strategy presented by the European Commission for the economic and financial system of the EU involves 2 more pillars. It is about developing more resilient financial market infrastructures and improving the enforcement of EU sanctions regimes.
As the second central axis of this series of meetings that are taking place, is the problem of covid-19. Carrying out orderly and equitable vaccination is not taking place for all countries, also taking into account the studies on vaccines due to the effects they are generating.
The ECB is analyzing the launch of the digital euro in the next five years. The objective of this would be to stop the competition from cryptocurrencies such as Bitcoin and ‘stablecoins’.
In recent hours, Germany has spoken out about it. Due to their role with the Bundesbank, as one of the main shareholders of the ECB, they spoke out in this regard, arguing that it could lead to risks for banks and that they should carry out a thorough investigation prior to making a decision. However, from the European Central Bank, those who have requested the veto, greater incidence and regulation on stablecoins, dispelled doubts. The digital euro would not replace physical money and they will make the necessary developments so that it does not compete with bank deposits and that the objective is to guarantee the independence of the euro area from other currencies and companies.
In this context, Germany, the main European economy, is debating the European recovery fund. It is a fund of 750,000 million euros, financed from the capital market to face the economic and social effects. Nations have until the end of April to approve an implementation plan. Last February, the European Council adopted the Regulation establishing the Recovery and Resilience Mechanism, which is under treatment, being the central axis of the Recovery Mechanism from the pandemic caused by covid-19.
This new strategy proposes a strengthened and innovative financial sector, with a “more efficient and resilient” payment system.