The European Central Bank (ECB) intends to expand its ties to foreign central banks, making it easier for them to borrow euro in a crisis, Reuters reported Monday.

ECB president Christine Lagarde told European lawmakers this would take the form of swap lines, a form of emergency liquidity that allows central banks outside the Eurozone to borrow euro against their own currency.

“We will be working on swap lines that will be more responsive to the imperative of having a sovereign euro area and a strong euro,” Lagarde said.

These can not only relieve pressure on foreign banks but also safeguard the eurozone from outside shocks by ensuring euro-denominated loans can be repaid.

Such a move would be the latest in a series of moves designed to bolster the euro’s position as an international currency. This push began in earnest in July last year, when Lagarde published an article on the ECB’s blog suggesting that the “fracturing” of the established geopolitical order presented Europe with the opportunity to “to take greater control of its own destiny and for the euro to gain global prominence”.

In the article, Lagarde referenced swap lines with “key partners” as a way to avoid euro liquidity crises abroad. The bloc currently maintains swap agreements with the US Federal Reserve and the central banks of Japan, the UK, Canada and Switzerland.

In July 2026, ECB board member Isabel Schnabel said that the bank had received over 30 applications for a separate foreign bank lending facility, known as repo or repurchase agreements, which allows borrowing against euro collateral, per Reuters.

In a separate speech to the Committee on Economic and Monetary Affairs of the European Parliament, also on Monday, Lagarde said that Europe has a “real opportunity to harness” AI.

The technology has the potential to “transform how we produce, work and innovate”, and enhance the continent’s productivity, competitiveness and living standards, she added.

Firms in the euro area are set to devote an average of ten per cent of their total investment to AI in 2026, and AI-related borrowing already accounts for roughly a quarter of credit growth to firms, according to an ECB economic bulletin.

Lagarde said that unlocking the “full potential” of AI will require substantial investment in innovation, computing capacity, data centres and energy.

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