(12 October 2026 – Europe) The European Central Bank (ECB) should take on a more activist role as a global lender of last resort according to a new report by the European Macro Policy Network.
The group sets out policy recommendations that support further internationalisation of the Euro and repositioning of the currency with an active policy for crisis management. The US Federal Reserve has deployed swap lines in crisis situations with the International Monetary Fund (IMF) while China has used the PBoC’s swap line policy in support of its Renminbi (RMB) internationalisation agenda.
The ECB plays a role in underpinning the Euro’s global appeal as a pillar of Europe’s institutional strength and its independence and price stability mandate bolster global confidence in the Euro.
As the issuer of a currency designed for the digital payment age, the Eurosystem ensures central bank money remains a trusted anchor of stability amid rapid technological change. As a provider of backstop liquidity to central banks worldwide, the enhanced Eurosystem repo facility (EUREP) boosts market participants’ confidence to invest, borrow and trade in Euros globally knowing that access will be there during market disruptions.
The Euro remains the second most important currency in the international monetary system as measured by FX reserves, outstanding international debt/loans/deposits, FX turnover and as a share of global GDP. At almost 20 percent, the share of the Euro is around five percentage points above the Euro area’s share of global output.
“Shifts in the global geopolitical landscape underscore the importance of a stronger international role for the euro. There is an opening for the Euro to enhance its global appeal – provided that European policymakers create the necessary conditions and put words into action. For this to happen, the three pillars that underpin the Euro’s global potential, economic resilience, legal and institutional integrity and geopolitical credibility, must be reinforced” stated ECB President Christine Lagarde.
“Viewed from a longer-term perspective, the role of the Euro has grown gradually but steadily. Since the escalation of geopolitical tensions triggered by Russia’s invasion of Crimea in 2014, the euro has remained the world’s second most important currency.”
Snapshot of the international monetary system and countries’ shares of global GDP
% of Total
Source: BIS, IMF, Ilzetzki, Reinhart and Rogoff (2019) and ECB staff calculations