One hundred days after Christine Lagarde, President of the European Central Bank, called for a stronger global role for the euro, progress is visible but uneven. The single currency shows some promising signs, yet challenges remain in its quest to rival the US dollar.
ING analysts stress that 100 days is too short to expect major results. Still, there are key indicators that highlight where the euro is making strides internationally.
In foreign exchange reserves, the euro’s share has not grown quarter-on-quarter as many emerging market central banks increased their dollar holdings. However, the year-on-year picture is more positive. Smaller reserve holders are helping diversify demand, showing continued interest in the euro.
When it comes to global payments, the euro’s share in SWIFT transactions has stagnated this year. ING suggests that future gains may rely on US protectionist policies, which could push more trade toward the eurozone. New EU trade deals with India and Switzerland may also support higher euro invoicing.
Portfolio flows offer another sign of potential. A case study in Japan shows that when trade shifts from the US to Europe, demand for euro-denominated debt rises. Outflows from Japanese investors have now steadied, with signs of renewed interest in eurozone bonds.
In global bond markets, euro issuance continues to expand. The euro holds a 38.7% share of international bond issuance, second only to the dollar. Issuers now include a broader base from Central and Eastern Europe, Asia, Latin America, and the Middle East.
Foreign investment in eurozone debt and equities also increased in the second quarter of 2025. This demand is vital in absorbing extra supply created by quantitative tightening. More than 55% of all global AAA-rated debt is now denominated in euros, confirming the euro’s strong position.
On the regulatory side, the European Commission has proposed reforms to the securitization framework. The ECB will also decide in October on the future of the digital euro, which could further strengthen its global role.
Despite these advances, political progress is limited. Institutional reforms such as Qualified Majority Voting or a deeper fiscal union remain far from reality. Likewise, momentum toward a full capital markets union has slowed across European capitals.
Overall, the euro is already a key player in global markets and trade. Early signs, especially in debt markets, show that issuers and investors are gradually embracing the euro project. Yet, competing with the dollar’s dominance will require long-term reforms and stronger European institutions.
