External Representation of the Euro Area

This study outlines concrete options for improving the external representation of
the euro area in international institutions such as the IMF, the World Bank and
the G-20. The study proposes a two-stage process, the first of which requires
the creation of a permanent subcommittee of the Eurogroup Working Group
(EWG) to elaborate common positions at international level. A second step,
taken in the longer term, would consist of creating a single-member position in
the IMF and World Bank by merging national quotas via the European Stability
Mechanism (ESM). For the G-20, a single membership of the euro area could
create inconsistencies with the European Union membership. However, a euro
area membership could be envisaged if a more economically and financially
integrated euro area were to develop.

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