As euro turns 25, EU leaders say single currency facing challenges

In the face of increasing geopolitical tensions, economic crises and climate change, EU leaders are calling for the euro to be strengthened and for joint economic policy measures to be expanded.

"We face new challenges that countries cannot address alone," wrote EU Commission President Ursula von der Leyen and European Central Bank (ECB) President Christine Lagarde and other top leaders in a guest article published on the ECB's website.

The piece was simultaneously published in newspapers in all eurozone countries on Saturday. The authors also include EU Council President Charles Michel, EU Parliament President Roberta Metsola and the President of the Eurogroup, Pascal Donohoe.

The euro celebrates its 25th anniversary at the turn of the year. It became legal tender for 11 of the then 15 member states of the European Union on January 1, 1999 - initially electronically, then as cash from 2002.

"Solutions must embrace the scale made possible by working together in Europe," wrote the EU leaders. This includes building a capital market union, using European instruments and measures to increase competitiveness and enhance security.

To accomplish this, the ground work must be laid for a digital euro that can complement cash and bring the single currency "into the digital age."

Preparations for a digital version of the common currency have been underway for years. Following work on technology and data protection, the ECB launched a two-year preparatory phase on November 1 in which rules and regulations for the digital euro are to be finalized.