In a world where geopolitical tensions and economic instability are on the rise, monetary sovereignty has become a cornerstone of Europe’s financial resilience. On March 2, 2026, the Banque de France, Oesterreichische Nationalbank (OeNB), and Banco de Portugal formalized a landmark agreement to deepen their collaboration in banknoteA banknote (or ‘bill’ as it is often referred to in the US) is a type of negotiable promissory note, issued by a bank or other licensed authority, payable to the bearer on demand. More production. This partnership represents a significant stride toward securing Europe’s control over the entire cashMoney in physical form such as banknotes and coins. More supply chain, ensuring both economic independence and public trust in the euroThe name of the European single currency adopted by the European Council at the meeting held in Madrid on 15-16 December 1995. See ECU. More.
The foundation for this alliance was established in 2015 with the creation of Europafi, a Banque de France subsidiary specializing in high-security banknote paperThe most widely used banknote substrate throughout history, usually made from cotton, of short fibres, which give a banknote special characteristics of touch, sound and firmness. It can include other fibres of different origins. More production. Located in Vic-le-Comte, France, Europafi’s state-of-the-art facility has become a keystone of the EurosystemThe Eurosystem comprises the European Central Bank and the national central banks of those countries that have adopted the euro. More, supplying not only the eurozone but also central banks worldwide.
Europafi’s industrial leadership is evident in its advanced paperSee Banknote paper. More machines, automated cutting lines, and sustainable pulp preparation, enabling it to produce up to 5,000 tonnes of banknote paper annually—covering over 50% of the euro area’s needs. The facility’s commitment to technological excellence and eco-friendly practices sets new standards for efficiency and sustainability, reflecting a broader strategy to position Europe as a global leader in banknote production.
The latest agreement marks a historic shift in European monetary cooperation. The Banque de France has acquired financial stakes in the OeNB’s OeBS (Austria) and Banco de Portugal’s Valora (Portugal) printing facilities, creating a unified, public-sector-led network for banknote production.
This move transcends industrial collaboration—it is a strategic assertion of European autonomy. By integrating expertise and resources, the three central banks are building a resilient, self-sufficient cash infrastructure, capable of mitigating geopolitical risks and ensuring uninterrupted cash supply across the Eurozone.
Cash remains a tangible embodiment of state authority and financial inclusionA process by which individuals and businesses can access appropriate, affordable, and timely financial products and services. These include banking, loan, equity, and insurance products. While it is recognised that not all individuals need or want financial services, the goal of financial inclusion is to remove all barriers, both supply side and demand side. Supply side barriers stem from financial institutions themselves. They often indicate poor financial infrastructure, and include lack of ne... More. Unlike digital payments, it operates independently of electronic infrastructure, providing a reliable fallback during crises. For citizens and businesses alike, cash is a guarantee of value and a pillar of trust in the monetary system.
The alliance between shows that true monetary sovereignty requires control over the entire lifecycle of currencyThe money used in a particular country at a particular time, like dollar, yen, euro, etc., consisting of banknotes and coins, that does not require endorsement as a medium of exchange. More, from raw materials to issuance. This control is essential for combating counterfeiting, ensuring financial stability, and upholding public trust in the euro.
Europafi’s impact extends far beyond Europe. As a global supplier—with 80% of its output exported—it has become a benchmark for quality and security, reinforcing the euro’s reputation as a stable, trusted currency.
The facility’s integration of watermarks, security threads, and tactile features directly into banknote paper sets global standards for authenticityThe condition that a security element of a banknote or security document is genuine. More. By supplying central banks worldwide, Europafi showcases European expertise, strengthening the euro’s role on the world stage.
This collaboration is more than an industrial partnership—it is a collective commitment to European resilience. In an era of interconnected yet vulnerable financial systems, the ability to produce, secure, and distribute cash independently is a strategic necessity.
By pooling resources, the Banque de France, OeNB, and Banco de Portugal are safeguarding the future of cash, reinforcing the autonomy of the Eurosystem, and ensuring the euro remains a symbol of stability and sovereignty.
The 2026 agreement is a decisive statement on the enduring relevance of cash in the modern economy. Through initiatives like Europafi, Europe is preserving its monetary heritage while future-proofing its financial resilience.
In a world of evolving threats, this alliance proves that cash is not just a paymentA transfer of funds which discharges an obligation on the part of a payer vis-à-vis a payee. More method—it is a foundation of European unity and sovereignty.