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Boosting Europe's geopolitical role means that we should put the policy positions that we defend globally into practice domestically. There is no doubt about it: if we are to maintain credibility, we lead by example. I am thinking of areas such as the fight against climate change, free and fair trade, international taxation, sustainable finance and setting global standards.
Above all, Europe cannot successfully play a key global role without further deepening the Economic and Monetary Union. This remains a top priority. While there has been much progress in the last five years, the EMU needs more reform to shield the euro area from large economic downturns.
This is strategically important for several reasons:
- to project the EU's economic weight;
- to affirm its economic sovereignty;
- and to strengthen the international role of the euro.
The euro is a strategic asset for the EU. Around 60 countries either use it, or link their currency with it. It is consistently the second most used currency, in payments and in global reserves. However, its international use has not yet returned to where it was before the financial crisis. To close the gap, the euro must acquire the key support features that underpin a reserve currency. This includes a financial system that is large and sophisticated enough to guarantee the liquidity of the currency and related assets, along with a stable and efficient by functioning economy.
For that, a deep and liquid European capital market is vital.
This brings me to the Capital Markets Union, where we will be doing further push during the next Commission's mandate. That goes for the Banking Union too. We have made a lot of progress with the CMU. But there is much more to do.
I aim to speed up the work to diversify sources of finance for companies and tackle barriers to the flow of capital within the EU.
Developing sustainable finance is critical to the long-term competitiveness of the EU financial and banking sectors. Europe has the potential to build itself into a centre of expertise to attract rising numbers of investors keen to place their funds and savings in green investment options. This is an opportunity that we have to seize.
And we should do it quickly: this sector is turning highly competitive. Europe could become the home for the main international hubs for sustainable finance. The more Europe succeeds in being a global leader on sustainability, the more it will succeed in attracting green and sustainable financial inflows. That will generate even more growth and jobs, for everyone's benefit.