Addressing the difficulty of how to represent the euro area/EU within the IMF
The proposal consists of building a unified representation of the euro area into the bodies of the International Monetary Fund (IMF) but the Commission mentions the need for a transitional period. The euro has all the features of an international currency. It was, right from the start of its existence, included in the Special Drawing Rights (SDR) basket, the official currency of the IMF, first as a substitute for the French Franc and the Deutsche Mark and, after a while, it was given a place among the international currencies composing the SDR basket. Measures have been adopted in order to partially cope, in terms of relations with IMF bodies, with the specificity of the European Union’s (EU) economic and monetary integration process. The chapter concludes by evaluating the likelihood of a significant move in terms of improving the way in which the EU/euro area is represented in the IMF.