- EU Plans to Lessen Reliance on Dollar, Boost Euro to Blunt Financial Risks, Exposure to US Sanctions
by Svetlana Ekimenko, https://sputniknews.com/
The EU launched a long-term plan back in 2018 for the wider use of the euro in the global economy to “better protect citizens and companies against external shocks”, rendering the international finance and monetary system more resilient.
The European Union is pushing ahead with a detailed plan, seeking to shield the bloc from potential currency shocks by lessening the US dollar’s dominance, writes Bloomberg. The strategy, laid out in a draft proposal, hinges on boosting the international role of the euro, while chipping away at reliance on the US dollar. The move is seen as potentially beneficial for cushioning the impact of a fallout from financial risks, including lessening the European bloc’s vulnerability to US sanctions.
“The extra-territorial application of unilateral sanctions by third countries has seriously affected the EU’s and its member states’ ability to advance foreign policy objectives, to honour international agreements and to manage bilateral relations with sanctioned countries,” the document says.
The plan, charged with fostering “openness, strength and resilience,” was earlier reported by the Financial Times, and incorporates measures to allow for the greater scrutiny of foreign takeovers.