Activities of Raffaele FITTO related to 2020/2037(INI)
Shadow reports (1)
REPORT on strengthening the international role of the euro
Amendments (22)
Amendment 8 #
Motion for a resolution
Citation 15
Citation 15
— having regard to the blog post from Bruegel of 5 June 2020 entitled ‘Is the COVID-19 crisis an opportunity to boost the euro as a global currency?’,
Amendment 26 #
Motion for a resolution
Recital C
Recital C
C. whereas current geopolitical tensions 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 multicurrency reserve system where the euro will offer additional currency choices for market participants globally and allow for reduced global financial risks;
Amendment 29 #
Motion for a resolution
Recital C a (new)
Recital C a (new)
Ca. whereas the euro, whilst being the second most internationally traded currency after the USD, is still lagging behind in some of the key functions of an international currency, such as its role as a reference for official and private use;
Amendment 36 #
Motion for a resolution
Recital E
Recital E
E. whereas while the decision to use a currency is ultimately determined by market participants' preferences, confidence in the stability of currency is a crucial component that influences their choices and an important criterion for central banks and governments in determining the composition of their international reserves;
Amendment 43 #
Motion for a resolution
Recital F
Recital F
F. whereas Brexit brings structural changes to the EU financial system and its stability, intensifying the need to continue developing the EU’s capital markets, to avoidthe United Kingdom (UK) ceased to be a Member State of the European Union (EU) on 31 January 2020; whereas the UK's withdrawal from the EU brings structural changes to the EU financial system and its stability, intensifying the need for further integration and improvement of the EU’s capital markets, with a view to making them as attractive, competitive, and resilient as possible, thereby avoiding market fragmentation and to maintaining a global and cooperative mindset, while consolidating its emerging polycentric financial and capital market system;
Amendment 58 #
Motion for a resolution
Recital H a (new)
Recital H a (new)
Ha. whereas in some strategic markets, such as markets for raw materials, many European companies still do not choose the euro as a reference currency for pricing and trading;
Amendment 70 #
Motion for a resolution
Recital J a (new)
Recital J a (new)
Ja. whereas, historically, countries issuing dominant currencies have been characterised by a large and growing economy, free movement of capital, a willingness to play an international role, stability, an ability to provide a large and elastic supply of safe assets, developed financial markets, and significant geopolitical and/or military power; whereas the EMU does not meet all these criteria;
Amendment 72 #
Motion for a resolution
Recital J b (new)
Recital J b (new)
Jb. whereas the ECB's own international role of the euro summary composite index suggests that the rise of the euro as an international currency peaked as early as 2005; whereas, thereafter, its internationalisation went into reverse, and the euro has not since returned to its previous status;
Amendment 89 #
Motion for a resolution
Paragraph 1
Paragraph 1
1. Considers that strengthenit is ing the international role of the euro can generate benefits both in the short and long term; notes, however, that itstrategic long term interest of the euro area and of its Member States to draw all possible benefits from issuing the euro currency which has the potential of becoming a more important global reserve currency in the long term; notes, however, that strengthening the international role of the euro also brings risks and responsibilities that must be taken into consideration in the process of complementing market forces with policy measures; underlines, in particular, that thea strengthened 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-through., thus increasing the EU's ability to frame its policy stance independently vis-à-vis other global powers;
Amendment 95 #
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, the Union has to complete the as yet unfinisfurther develop thed infrastructure for the common currency and make more progress on its critical functions;
Amendment 107 #
Motion for a resolution
Paragraph 3
Paragraph 3
3. Reiterates, in this context, the need to deepen and completefurther develop the Economic and Monetary Union (EMU), the Banking Union and the Capital Markets Union (CMU), with a view to enhancing the EU's growth potential and international competitiveness of European markets and, thus also improving the attractiveness of the euro;
Amendment 116 #
Motion for a resolution
Paragraph 4
Paragraph 4
4. Underlines that making more progress in developing the CMU would increase both resilience to and independence from global developments and the attractiveness of euro-denominated assets; deploregrets the segmentation of the euro area’s capital markets along national lines, which has resulted in relatively small-sized markets; considers Brexitthe UK's withdrawal from the EU, in that regard, as both a challenge and an opportunity;
Amendment 138 #
Motion for a resolution
Paragraph 5
Paragraph 5
5. Emphasises the need for strong, fair, and 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 adequacypossible reforms of the stability and growth pact framework despite thein order to set realistic targets for debt reduction in 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 141 #
Motion for a resolution
Paragraph 5 a (new)
Paragraph 5 a (new)
5a. Notes that the Union must avoid repeating the same mistakes made during the sovereign debt crisis in the euro area; therefore believes that a premature withdrawal of support measures should be avoided in order to prevent the possibility of a recession;
Amendment 157 #
Motion for a resolution
Paragraph 6 a (new)
Paragraph 6 a (new)
6a. Emphasises that the benefits of a strengthened international role for the euro may come from a more liquid markets than the single currency and from financial assets secured at supranational level;
Amendment 164 #
Motion for a resolution
Paragraph 7
Paragraph 7
7. Takes note of the role geopolitics plays in global currency competition; highlights in this regard that the EU’s limited geopolitical reach is in part due to its military dependence on the United States;
Amendment 168 #
Motion for a resolution
Paragraph 8
Paragraph 8
8. Is concerned that EMU’s lack of ability to speak as a unified voice with international institutions can hold backBelieves that the disproportionately high number of EU and EMU Member States' voices in international institutions and fora constitutes a European advantage, with coordination among the various EU representatives during these meetings being conducive the international role of euro;
Amendment 180 #
Motion for a resolution
Paragraph 10
Paragraph 10
10. Underlines that a strengthened international role of the euro wcould enhance the EU’s capability to enforce open strategic autonomy; recommendemphasises, therefore, actions intended to both design and implement policy measures thatthe need for policy makers to undertake productivity-enhancing structural reforms, thus improving potential growth and fostering the international role of the euro and; supports market-driven shifts in this direction;
Amendment 188 #
Motion for a resolution
Paragraph 11
Paragraph 11
11. Advocates, in this context, that policies critical for and conducive to strengthening the international role of the euro sheuro area economies are likely to also increase the use of the euro as an international reserve currency; considers that such policies could target, inter alia, international trade, fiscal and monetary policy mix, financial services and capital markets, labour market rigidities, payments systems, the climate, the digital transformation, energy, and foreign and security policies;
Amendment 191 #
Motion for a resolution
Paragraph 11 a (new)
Paragraph 11 a (new)
11a. Underlines that labour market flexibility is instrumental in creating job opportunities; believes that a structural mismatch between supply and demand for labour hinders recovery and long-term growth and therefore calls for structural reforms to eliminate existing rigidities in the labour market; suggests that such structural reforms could include revising wage-setting mechanisms in order to better reflect productivity developments, enhanced labour mobility and more flexible working patterns;
Amendment 201 #
Motion for a resolution
Paragraph 12 a (new)
Paragraph 12 a (new)
12a. Recalls that one of the main objectives of the euro is to improve the level of protection of its citizens and businesses; stresses that a wider worldwide use of the euro would reduce the costs and risks borne by European businesses and households;
Amendment 216 #
Motion for a resolution
Paragraph 14
Paragraph 14
14. Stresses that, besides its primary mandate of maintaining price stability, the ECB is tasked with other secondary objectives, including 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;