Activities of Henrike HAHN related to 2020/2037(INI)
Shadow reports (1)
REPORT on strengthening the international role of the euro
Amendments (31)
Amendment 2 #
Motion for a resolution
Citation 3 a (new)
Citation 3 a (new)
— having regard to the Paris Agreement of the United Nations Framework Convention on Climate Change and the Sustainable Development Goals;
Amendment 4 #
Motion for a resolution
Citation 4 a (new)
Citation 4 a (new)
— having regard to Article 21 TEU and Articles 119, 127 and 208(1) TFEU;
Amendment 9 #
— having regard to the in-depth analysicompilation of papers requested by its ECON Committee of June 2020, part of the Monetary Dialogue Papers, entitled ‘The International Role of the Euro: State of Play and Economic SignificanceA Monetary Policy View’ of June 2020 13 , _________________ 13 https://www.europarl.europa.eu/RegData/e tudes/IDANSTUD/2020/64880652705/IPOL_IDASTU(202 0)64880652705_EN.pdf
Amendment 14 #
Motion for a resolution
Recital A
Recital A
A. whereas in its 20 years of existence, the euro has become a positive symbol of Europe’s unity, integration, economic strength and of its position in the world;
Amendment 21 #
Motion for a resolution
Recital B
Recital B
B. whereas despite the euro area’s economic size and influence in global trade, the use of the euro lags behind the US dollar by a wide margin, yet it is still ahead of all other competing currencies;
Amendment 24 #
Motion for a resolution
Recital C
Recital C
C. whereas current geopolitical tensionshifts and international trade challenges – including the disruption of value chains, technological developments, digital transformation, the rise of China’s economic power and the challenges posed by the US to multilateralism – lead to a multipolar world economy, thus paving the way for a potential shift towards a – may lead to a multipolar world economy in which the US-Dollar may not retain its current dominance in the global monetary system 1a; _________________ 1aGiven the election of Joe Biden, this statement is premature. While he will probably continue some of the foreign policies of the Trump government, he is unlikely to use the same unilateral style. Regarding the 'multi-currency reserve system where th', we suggest a more neuro will offer additional currency choices for market participants globally and allow for reduced global financial risks;tral wording because we fear that such a system will be inefficient and will not be accepted by market participants.
Amendment 28 #
Ca. whereas the economies and citizens of developing countries suffer from instability in the international monetary system and a lack of control over exchange rates and interest rate fluctuations in international trade and reserve currencies;
Amendment 34 #
Motion for a resolution
Recital D
Recital D
D. whereas the EU should protect the integrity of its financial infrastructures and, the independence of its market operators and the independence of global financial transaction networks against foreign policy unilateralism and potential extraterritorial sanctions by third country jurisdictions, and ensure at the same time the effective enforcement of EU sanctions policy;
Amendment 49 #
Motion for a resolution
Recital H
Recital H
H. whereas post-pandemic economic recovery requires the fast implementation of the EU recovery plan, which will address structural weaknesses and put in place policies to enhance growth and competitiveness; whereas such policies are paramount both to enhancing the attractiveness ofmust focus on (i) the just green transition, (ii) the digital transformation, (iii) economic cohesion, productivity and competitiveness, (iv) social and territorial cohesion, (v) institutional resilience and (vi) policies for the next generation; whereas the premature withdrawal of fiscal stimulus and the lack of coordination of fiscal action can exacerbate already existing divergences in the eEuro globally and to strengthening Europe’s economic and financial autonomy; whereas a meaningful fiscal stimulus, in conjunction with a monetary one – including a joint European effort –, will have a positive effect on the international position of the euro; whereas the premature withdrawal of fiscal stimulus and the lack of coordination of fiscal action can undermine the attractiveness of the euro as an international currency; zone and thus undermine its cohesiveness and integrity 1a; _________________ 1aThe deleted wording about the goals of the recovery plan does not correspond to the position of the European Parliament in the RRF negotiations, nor the July 2020 EP resolution on the recovery from the Covid-crisis. Therefore, it should either be deleted or aligned with the EP position. Here we propose to adapt the text from the EP position on Article 3 of the RRF. An alternative could be to use recital B from the July 2020 resolution on the conclusion of the extraordinary Council meeting of 17th-21st July (‘Europe’s recovery should be based on the European Green Deal, the Digital Agenda for Europe, the New Industrial Strategy and entrepreneurship, so that our economies emerge from this crisis stronger, more resilient, more sustainable and more competitive;’)
Amendment 62 #
Motion for a resolution
Recital I
Recital I
I. whereas new powers to issue recovery debt, including green bonds – which make the EU the world’s biggest issuer of such debt –, require adequate implementation and enforcement capacities so as to avoid undermining the long-term credibility of the euro as a safe asset curreas well as strong standards of transparency and traceability of proceeds from green bond issuancye;
Amendment 65 #
Motion for a resolution
Recital J
Recital J
J. whereas while thestudies commissioned by the economic and monetary affairs committee of the European Parliament have demonstrated that wider use of an international currency bears privileges and gains, isuch as lower exchange rate risks, but also implies global responsibilities, dependencies and costs, costs and risks, such as the risk that greater demand for a currency reduces the competitiveness of the issuer’s exports; whereas neither the costs nor the benefits clearly outweigh the other;
Amendment 75 #
Motion for a resolution
Recital K
Recital K
Amendment 84 #
Motion for a resolution
Subheading 1
Subheading 1
Challengeosts and benefits of strengthening the international role of the euro
Amendment 88 #
Motion for a resolution
Paragraph 1
Paragraph 1
1. Considers that strengthening the international role of the euro can generatebring benefits both in the short and long term; notes, however, that it also brings risks and responsibilities that must be taken into consideration in the process of complementing market forces with policy measuresas well as risks and responsibilities that must be taken into consideration; underlines, in particular, that the international currency status of the euro can enhance monetary policy autonomy and reinforce its global transmission, make the euro more of an attractive investment, and provide exorbitant privilege and lower exchange rate pass-throughlower transaction costs for currency exchanges.
Amendment 93 #
Motion for a resolution
Paragraph 2
Paragraph 2
2. Points out that, in order for the potential benefits from the strengthened role of the euro to materialise,Concludes that strengthening the international role of the euro is not and should not be a foreign or economic policy goal in its own right and that no actions should be taken to increase international use of the euro unless these actions have the clear potential to improve the internal cohesion and functioning of the eurozone or promote global economic relations that are in line with the principles in the founding documents of the United Nations, the goals of the Paris Climate Agreement, the Sustainable Development Goals and the promotion of human rights; emphasises that the degree to which a particular currency is used by external actors is connected to the integrity and cohesiveness of the jurisdiction that issues that currency; concludes that the Union has to complete the as yet unfinished infrastructure for the common currency and make more progress on its critical functions;
Amendment 103 #
Motion for a resolution
Paragraph 3
Paragraph 3
3. Reiterates, in this context, the need to deepen and complete the Economic and Monetary Union (EMU), through introducing a fiscal capacity, a treasury and counter-cyclical fiscal policies, as well as the Banking Union and the Capital Markets Union (CMU), with a view to enhancing the international competas this would benefit European citivzeness of European markets ands and businesses; notes that these measures would also increase the attractiveness of the euro;
Amendment 134 #
Motion for a resolution
Paragraph 5
Paragraph 5
5. Emphasises the need for sustainable and sound fiscal and structural growth-enhancing policies that are based on a commitment to credible fiscal rules; calls for further reflection on the adequacy of the stability and growth pact framework despite the challenging circumstances; supports the plan outlined in Next Generation EU to use, in addition to monetary policy, a fiscal impulse, notably borrowing EUR 750 billion from capital markets bonds to finance the recovery and green transition, in addition to the issuance of EUR 100 billion in ‘social’ bonds under the European instrument for temporary support to mitigate unemployment risks in an emergency (SURE), which is intended to preserve employment; applauds the high level of interest that investors have demonstrated in European bonds;
Amendment 149 #
Motion for a resolution
Paragraph 6
Paragraph 6
6. Highlights that an adequate supply of safe assets is a precondition for international currency status, and expresses its regret at the limited availability of euro- denominated safe assets; underlines, therefore, the need to create European safe assets in the form of mutualised debt instruments; considers that the proposed issuance of a common debt to finance recovery will provide an EU-level reserve asset benchmark and increase the supply of euro-denominated safe assets; hopes that, over time, this will be the germ of genuine permanent eurobonds; expects the ECB to conduct an assessment of the possibility of issuing certificates of deposit under its existing legal basis;
Amendment 155 #
Motion for a resolution
Paragraph 6 a (new)
Paragraph 6 a (new)
6a. Notes that the EU already leads the world in green bond issuance and strongly supports efforts to expand such issuance and become a world leader in setting robust standards for green bonds; calls for swift completion and implementation of the taxonomy of sustainable economic activities; calls on the Commission to present an ambitious new action plan on sustainable finance and a proposal for a robust EU green bond standard;
Amendment 163 #
Motion for a resolution
Paragraph 7
Paragraph 7
7. Takes note of the role geopolitics and international trade plays in global currency competition; recalls that Article 21 TEU states that, in its external action, the Union ‘shall promote multilateral solutions to common problems’ in all fields of international relations and that it shall ‘promote an international system based on stronger multilateral cooperation and good global governance’;
Amendment 169 #
Motion for a resolution
Paragraph 8
Paragraph 8
8. Is concerned that EMU’s lack of about the EMU’s inability to speak as a unified voice with international institutions can hold back the international role of ed suggests the creation of a eurozone treasuroy;
Amendment 175 #
Motion for a resolution
Subheading 2
Subheading 2
Policies supporting the sustainable international roluse of the euro
Amendment 176 #
Motion for a resolution
Paragraph 10
Paragraph 10
10. Underlines that a strengtheneding the euro’s international role of the euro would enhance the EU’s capabiis not a politcy to enforce open strategic autonomy; recommends, therefore,goal in its own right, and that actions intended to both design and implement policy measures thato foster the international role of the euro and support market-driven shifts in this directionit must always have other benefits, whether for the cohesion and functioning of the eurozone internally or promoting attainment of the principles of the founding documents of the United Nations, the goals of the Paris Climate Agreement, the Sustainable Development Goals and the promotion of human rights;
Amendment 185 #
Motion for a resolution
Paragraph 11
Paragraph 11
11. AdvocatDenounces, in this context, that policies critical for and conducive to strengthening the international role of the euro should target, inter alia, international trade, fiscal and monetary policy mix, financial services and capital market, payments systems, the climate, the digital transformation, energy, and foreign and security policiee Commission recommendation of 5 December 2018 ‘on the role of the euro in the field of energy’ as out of line with the Union’s climate goals; supports, however, measures that promote the use of the euro in sustainable international trade relations or its use as the currency of choice for sustainable financial products and instruments;
Amendment 195 #
Motion for a resolution
Paragraph 12
Paragraph 12
12. Notes that the global prominence of a currency is directly linked to the role that the issuing country has in global trade; stresses that the EU, as one of the world’s largest trading blocs, would benefit from a strengthened international role of its currency; underlines that stimulating the choice of the euro in trade will reduce exchange risk and other currency-related costs, especially for European SMEs; observes, however, that despite their position as large buyers and producers, European companies opt to trade in key strategic markets in US dollars; calls, therefore, on the Commission to foster the use of the euro in pricing and invoicing in trade transactions, and to make use of the high potential offered by financial instruments denominated in euros; points, in this context, to the potential offered by supply chains;
Amendment 199 #
Motion for a resolution
Paragraph 12 a (new)
Paragraph 12 a (new)
12a. Notes different approaches to organising the monetary architecture of a multi-polar world economy, including alternatives to the unilateralist approach of trying to become stronger in a zero-sum game of currency competition; observes that more cooperative approaches could exist for addressing imbalances in the global financial system through institution building, such as strengthening the role of the IMF's special drawing rights or Keynes' idea of an international clearing union; suggests that the EU engage in a fundamental debate over what kind of approach would be most suitable to achieving the twin goals of improving the wellbeing of European citizens as defined in Article 3 TEU and of promoting an international system based on stronger multilateral cooperation and good global governance as defined in Article 21 TEU;
Amendment 203 #
Motion for a resolution
Paragraph 12 b (new)
Paragraph 12 b (new)
12b. Recalls that Article 208(1) TFEU requires that the Union shall take account of the objectives of development cooperation in the policies that it implements which are likely to affect developing countries; suggests to monitor the policy implications of the international use of the euro at both the multilateral and the regional level and in particular how it affects international development cooperation; stresses in particular the need to assess how the peg to the euro in developing countries affects the economy and long-term prospects for sustainable development 1a; _________________ 1aUse of a currency as an anchor to peg one’s local currency to is one dimension of the international role of a currency. See papers by Beckmann et al. and Macchiarelli.
Amendment 207 #
Motion for a resolution
Paragraph 12 c (new)
Paragraph 12 c (new)
12c. Believes that the international role of the euro is a topic that also has a foreign policy dimension; would therefore welcome discussion inputs from the Union’s foreign policy community;
Amendment 213 #
Motion for a resolution
Paragraph 13
Paragraph 13
13. Stresses the role the ECB plays in maintaining trust in the euro and safeguarding monetary sovereignty; ; welcomes the prompt measures put in place by the ECB in order to cater for euro liquidity; underlines the promineimportance of swap arrangements and repo lines in enhancing the international role of the eurofor ensuring an adequate supply of euro liquidity;
Amendment 214 #
Motion for a resolution
Paragraph 14
Paragraph 14
14. Stresses that, besides its primary mandate of maintaining price stability and its secondary mandate of supporting the general economic policies in the Union with a view to contributing to the achievement of the objectives of the Union as laid down in Article 3 of the Treaty on European Union, the ECB is tasked with promoting the smooth operation of payment systems; underlines the importance of having autonomous European payment solutions; calls on the ECB to ensure an adequate balance between financial innovation and stability; 1a; _________________ 1a This is lifted verbatim from Article 127 TFEU.
Amendment 226 #
Motion for a resolution
Paragraph 15
Paragraph 15
15. Takes note of the ECB report on the digital euro, and of the value a digital currency can add in strengthening the international role ofwhich it welcomes as a project that could strengthen people’s confidence in the euro; supports the ECB’s efforts in ensuring a high level of cyber resilience;