Christine Lagarde celebrates 25 years of the euro: ‘Euro has made life easier’
by
Robert Gorter, MD, PhD, et al.
December 30th 2023
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(Zoe Schneeweiss, Bloomberg, December 30, 2023) – The euro helps Europe maintain global self-determination, said Christine Lagarde, president of the European Central Bank, in an opinion piece on the occasion of the currency’s upcoming 25th anniversary.
“The issuance of the world’s second most important currency has given us greater sovereignty in a turbulent world.”
Lagarde writes this in the joint article with Ursula von der Leyen, Charles Michel, Roberta Metsola, and Paschal Donohoe – presidents of the European Commission, the Council, Parliament, and the Eurogroup respectively.
Collective decisions
“We are facing increasing geopolitical tensions, not least Russia’s illegal war against Ukraine, which calls for courageous collective decisions,” the officials said.
“We are facing an accelerating climate crisis that we can only truly solve together: carbon emissions do not stop at borders. And we face unprecedented challenges to our competitiveness from energy and industrial policies in other parts of the world.”
350 million people
The euro was launched by 11 countries in early 1999 and remained an electronic currency for the first three years. The Eurozone now includes 20 countries, making the euro the means of payment for around 350 million people.
“The euro has made life simpler for European citizens, who can easily compare prices, trade and travel,” the leaders said. “It has given us stability, growth, and protected jobs amid a series of crises.”
That the euro will reach the quarter-century mark on January 1 shows the endurance of a monetary arrangement whose disintegration has often been predicted.
Greek crisis
As the Greek crisis raged in 2015, for example, former Fed Chairman Alan Greenspan reckoned that “it’s only a matter of time before everyone realizes that breaking up is the best strategy.” Greece did not leave and instead, the region welcomed its newest member, Croatia, in early 2023.
Two other Eurohoppers were less lucky. Romania’s application for membership has been hampered by internal bickering, evidenced by the highest turnover of governments in the EU. And Bulgaria, the bloc’s poorest country, had to abandon its plan to join in 2024 this year.
Join the EU
Although introducing the euro is theoretically a condition for joining the European Union, the Czech Republic, Hungary, Poland, and Sweden do not seem interested. Denmark, which opted out of joining before the arrival of the currency, is not giving in either.
“With several countries in the process of joining the EU, we must maintain our ability to act decisively,” Christine Lagarde and the other EU leaders wrote. “Expansion and deepening are not mutually exclusive. But enlargement may require changes in the way the EU is organized.”
Christine Lagarde may remain IMF director despite conviction for embezzlement by French court
In 2008, as French Minister of Finance and Economic Affairs, Lagarde allegedly did not intervene in a compensation scheme for a befriended businessman Bernard Tapie. He received 400 million euros from the state bank Crédit Lyonnais after a dispute over the sale of his majority share in the German sports company Adidas.
Despite her conviction, International Monetary Fund (IMF) President Christine Lagarde continues to have the support of the board. That indicates that she can stay on.
Lagarde was found guilty of negligence and fraud in France on Monday. The French judges also decided that sixty-year-old Lagarde would not receive a sentence.
In a statement, the IMF said the board continues to have “full confidence” in Lagarde and looks forward to continuing to work with her.
In 2008, as French Minister of Finance and Economic Affairs, Lagarde allegedly did not intervene in a compensation scheme for businessman Bernard Tapie. He received 400 million euros from the state bank Crédit Lyonnais after a dispute over the sale of his majority share in the German sports company Adidas.
The IMF CEO has announced that she does not intend to appeal. “I’m not satisfied with it, but there is a point where one just has to stop, turn the page, and continue working with those people who have put their trust in me,” Lagarde said.
Lagarde lawsuit
The prosecutor in the case against Lagarde pushed for an acquittal. Jean-Claude Marin said Thursday that the hearings have not produced evidence of the charges and that he is against a conviction.
Lagarde told the Court of the Republic on December 12 that she is “very shocked” by the 2015 indictment. According to her, it is short-sighted and approximately “a fantasy plot”, written by someone who has never met her. If convicted, Lagarde would receive a maximum of one year in prison and a fine of 15 thousand euros.