International organisations provide meeting points for the major economies to discuss common challenges and their solutions. As a result of the significant role of the euro in international financial markets, the institutions of the European Monetary Union (EMU) and the euro area are playing an increasingly important role in these discussions.
The economic strength of the euro area and the evolving use of the euro in the world economy have global consequences. Naturally, third countries that hold large euro reserves follow the monetary policy decisions of the European Central Bank (ECB) closely. And as the largest global trading bloc, the coordinated economic policies of the EU Member States can have significant consequences on trade and stability across the globe. This means that it is the combined policy mix of the euro-area Member States and the ECB that matters to the rest of the world.
In response, a more unified position on global economic issues is needed from the euro area. For this reason, the international role of the institutions of EMU and the euro area is growing. This role includes relations with organisations such as:
The importance of the euro area as an economic bloc means that, increasingly, the international monetary and financial community highlights the aggregate euro-area policy mix in its surveillance and discussions. In response, there is enhanced internal coordination within the euro area and a more unified approach to the international community.
This is achieved through the common positions on global economic issues taken by the euro-area Member States in the ECOFIN Council and the Eurogroup; and increasingly, a single euro-area position taken by the European Commission and the ECB in negotiations and discussions with international financial and monetary organisations.