The European leaders have announced the need to bring the Euro into the digital era and emphasised the necessity for the construction of a capital market union and a stronger banking union, ahead of the 25th anniversary of the European currency.

The Euro came into effect 25 years ago on January 1, 1999, and today it is the currency in twenty countries with a population of 350 million, the latest addition being Croatia at the beginning of the year.

In a joint article published on the ECB's website, President of the Eurogroup Paschal Donohoe, President of the European Central Bank (ECB) Christine Lagarde, President of the European Parliament Roberta Metsola, President of the European Council Charles Michel, and President of the European Commission Ursula von der Leyen marked this anniversary.

In the article published on Saturday, they wrote that the common currency has provided the European Union with "simplicity, stability, and sovereignty," facilitating the lives of European citizens who can now easily compare prices, trade, and travel.

The Euro has faced significant challenges over the years, including questions about its survival, write the European leaders, emphasising that "the right answers were found each time," such as the harmonised banking supervision system after the major crisis of 2008.

"Today, support for the common currency among the citizens of the eurozone is approaching record levels," they highlighted, warning that the job "is not done" as new challenges lie ahead for Europe, challenges that individual countries cannot handle alone.

The Union is confronted with growing geopolitical tensions, primarily Russia's "illegal war" against Ukraine, an accelerating climate crisis, and unprecedented challenges to European competitiveness coming from other parts of the world.

Therefore, key issues for the future will include defence, the green and digital transition. Only for the decarbonization of economies, 620 billion euros annually will be needed by 2030, they cautioned.

The EU must build a true capital market union to "mobilise private financing," strengthen the banking union, and reform fiscal rules. The Euro needs to enter the "digital era," and foundations must be laid for a potential "digital euro" that will complement cash.

The leaders warn that with "several countries currently in the process of joining the EU," the alliance must retain the capacity to "act decisively."

"Expansion and deepening are not mutually exclusive. However, expansion could require changes to the organisation of the EU," concludes the article.