For decades, the international financial system—anchored by a network of global, regional, and national institutions—has helped underpin economic stability and growth. Today, that foundation is coming under renewed strain. Geopolitical tensions, supply chain realignments, volatile financial conditions, and rapid technological shifts are reshaping the global landscape.
In this environment, the priority is not to replace the existing system, but to reinforce and adapt it, strengthening the linkages among its many layers so each can function more effectively as part of a coherent whole. As Asia’s economic and financial presence grows, its complementary engagement has become indispensable to this collective effort.
Lessons from Europe’s institutional evolution
Europe’s experience shows how cooperation can enhance stability while preserving diversity. Its evolution through multiple crises underscores how regional mechanisms can reinforce—not fragment—the global order when they work in concert with global institutions.
Next week, AMRO will visit key European institutions, including the European Central Bank (ECB), the European Commission (EC), and the European Banking Authority (EBA), to deepen dialogue on economic governance, crisis management, financial supervision, and payments innovation. These discussions will contribute to our shared understanding of how regional arrangements can support a more robust international financial system.
Asia’s cooperation within a global system
Over the past quarter century, Asia has developed its own regional arrangements—the Chiang Mai Initiative Multilateralisation (CMIM) and the ASEAN+3 Macroeconomic Research Office (AMRO)—to strengthen crisis prevention, macroeconomic surveillance, and financial stability. These mechanisms reflect the region’s determination to contribute meaningfully to the stability of the broader global financial system.
Today, the task is to deepen alignment across the Global Financial Safety Net (GFSN), which is best understood as an evolving ecosystem. Global institutions such as the IMF, regional arrangements such as the ESM and CMIM, and national authorities all play essential and complementary roles. Rather than focusing on institutional gaps, the focus should be on strengthening communication, promoting consistency, and enhance coordination. This is how we build an adaptive, connected, and forward-looking financial safety net—one capable of managing both immediate shocks and structural transformations.
Achieving this cooperative vision requires the continued commitment of all major partners. The US, in particular, remains central to the integrity, strength, and dynamism of the global financial system.
An Asian approach: Resilience through openness
Asia’s economic success has long been built on openness, prudence, and cooperation. As the region strengthens its internal foundations, maintaining outward connectivity and engagement will be key to sustaining economic stability and driving long-term growth.
Asia’s approach to cooperation is functional rather than hierarchical. It values complementarity over uniformity and seeks practical alignment while respecting national diversity. This model—anchored in resilience and openness—may offer a practical path forward for regions navigating today’s uncertainty. It embodies a form of cooperation that enhances collective stability without undermining national autonomy.
Deepening Asia–Europe dialogue
The dialogue between Asia and Europe has renewed importance. Both regions must manage economic transitions while preserving stability and trust, recognizing that resilience is built through coordination, not isolation.
In my upcoming discussions with European counterparts, I look forward to exploring how regional mechanisms can reinforce the global framework—connecting surveillance, policy dialogue, and financial safety arrangements. By learning from Europe’s institutional evolution and sharing Asia’s own experience, we aim to build bridges not only across regions but also among different layers of the global financial architecture. Such engagement supports a more connected and adaptive international system.
Toward a more connected and durable financial order
The durability of the international financial system rests on how effectively its components work together. The IMF remains the cornerstone, but regional institutions provide essential flexibility, proximity, and responsiveness. Strengthening these linkages is not about redistributing influence; it is about deepening continuity, reinforcing trust, and modernizing cooperation for new realities.
ASEAN+3 members, including the 2026 ASEAN+3 Co-chairs—Japan and the Philippines—have reaffirmed their commitment to enhancing cooperation across all levels of the GFSN. This steady, deliberate work often attracts little attention, but it is precisely what sustains global stability. The international financial order endures not because it remains unchanged, but because it evolves through shared purpose and mutual learning.
Asia and Europe, working with the US and partners around the world, can help shape a financial system that is both adaptive and reliable—an order grounded in cooperation rather than competition, and in resilience rather than rigidity. True stability is forged not only in moments of crisis, but through the steady strengthening of trust and cooperation. That is how we safeguard the foundations of global prosperity—and ensure they remain strong for the years ahead.