EuroRaums

Euroraums are a proposed supranational unit of account and settlement used within the European Union to facilitate cross-border fiscal coordination and emergency liquidity. Unlike the euro, Euroraums would not replace national currencies or serve as legal tender; rather they would function as a digital value unit minted and managed by a European-level authority and used primarily for intergovernmental transactions, macroprudential tools, and cross-border payments.

Design and mechanics: Valuation would be pegged to a diversified asset basket or to the euro, and issuance would follow a rules-based framework. Transactions would be conducted on a secured digital ledger compatible with existing banking rails. Euroraums could be converted to euros under policy rules, with conversion limits and eligibility determined by the issuing authority.

Governance: Proposals envisage an independent Euroraums Authority within the EU framework, responsible for issuance rules, reserves, oversight, and dispute resolution. Its authority would depend on treaty changes or new intergovernmental arrangements; member states would retain sovereignty over fiscal policy while using Euroraums for specific cross-border operations.

History and status: The concept has circulated in academic and policy discussions since the mid-2010s as a response to lessons from the euro area crisis and debates over debt mutualization and euro-area stabilization tools. No program has been adopted, and practical design remains contested.

Reception and criticisms: Supporters argue Euroraums could speed cross-border payments, improve liquidity management, and reduce systemic risk in emergencies without creating a parallel currency. Critics warn about legal complexity, potential to undermine national budgets, and the risk of politicization or inadequate governance.