Amidst testing transatlantic relations and the pressing concept of 'strategic autonomy', European leaders are revisiting an old but unfinished plan to strengthen the euro's international role. Discussions occurring during the Munich Security Conference about deepening capital market integration and expanding joint debt issuance reflect a shift in perspective, signaling that the matter has evolved from theoretical to geopolitical importance. These dialogues suggest a concerted effort by European powers to enhance the euro's stature amid global economic shifts.

A significant catalyst for these developments was the European Central Bank's (ECB) recent decision to make its euro repo facility (Eurep) permanently available to central banks worldwide, starting from the third quarter of 2026. This facility offers liquidity access of up to €50 billion, essentially empowering central banks with the means to bolster their financial stability using euros. ECB President Christine Lagarde emphasized that increasing the euro's role as a 'lender of last resort' for central banks is crucial in strengthening confidence in the euro as an international currency.

The implications of this move are profound as they not only signify a commitment to enhancing the euro's global standing but also resonate with broader geopolitical strategies aimed at reducing reliance on other dominant currencies, particularly the US dollar. As European nations navigate a complex international landscape, the potential elevation of the euro's status can signal a shift in monetary dynamics and has far-reaching consequences for both Europe and the global economy.