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The Euro: Charting the next decade ahead

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  • Alessio Terzi

Abstract

Since it was created over a quarter of a century ago, the euro has served Europeans well, promoting trade and investment, and by and large guaranteeing price stability. It has proven resilient to shocks, including a global financial crisis, the euro area crisis, a global pandemic and an energy crisis. As a result, it remains an attractive currency used today by 20 Member States, up from the 11 initial Member States in 1999. Looking ahead over the next decade, the euro will need to navigate several mega trends. They include rising geopolitical tensions, climate change, the digital/AI revolution and population ageing. This chapter aims to sketch out how these mega trends could affect the EU’s economic and monetary union and its institutions and to distil some high-level policy implications for the years to come.

Suggested Citation

  • Alessio Terzi, 2024. "The Euro: Charting the next decade ahead," Quarterly Report on the Euro Area (QREA), Directorate General Economic and Financial Affairs (DG ECFIN), European Commission, vol. 23(2_3), pages 79-89, December.
    • Handle: RePEc:euf:qreuro:0232_3-06
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