The French government is approaching Europe's initiative to strengthen the euro's international role with caution and has called for an assessment of the associated economic risks.

Finance ministers are scheduled to meet in Brussels later on Monday to discuss ways to promote the use of the euro in issuance and transactions.

An official from the French finance ministry, who spoke on condition of anonymity during a briefing for journalists, stated that Paris supports the general direction but wishes to gain a clearer understanding of the potential costs for exporters if the euro appreciates further against the US dollar.

This cautious stance emerges against the backdrop of the euro's rise to its highest level against the dollar since 2021 earlier this month, which prompted French President Emmanuel Macron to urge fellow leaders to discuss the implications of a stronger euro.

France has historically been a strong proponent of initiatives to elevate the euro's global economic status and has frequently expressed dissatisfaction with the dominance of the US dollar. This sentiment dates back to the 1960s when Valéry Giscard d'Estaing coined the term "exorbitant privilege" to describe the dollar's position.

However, the French official noted that the eurozone economy today may not be able to replicate such a privilege, partly because the eurozone runs a trade surplus with the rest of the world. The official explained that if the euro becomes a safe-haven asset for investors during times of crisis, eurozone exporters could face a dual challenge: reduced demand due to an economic downturn and the negative impact of a stronger euro.

The measures to be discussed by European ministers in Brussels on Monday include enhancing the competitiveness of the European economy by deepening financial market integration, promoting strategic autonomy in payments—particularly through a digital euro—and encouraging the use of the euro in trade and within the global financial safety net.

Over the weekend, the European Central Bank announced its readiness to provide euro liquidity to central banks worldwide as part of its efforts to bolster the currency's international standing.