Brussels promotes project for "stronger international role" of the euro against the dollar – The Economic Journal

Brussels promotes project for "stronger international role" of the euro against the dollar - The Economic Journal


The European Union wants the euro to have a "stronger international role" to dominate the dollar in an attempt to defy the policies of US President Donald Trump. This project aims to increase the use of the euro in "strategic sectors" as energy, the Financial Times reports Tuesday.

The European Commission will publish the project on Wednesday and according to a 'draft' to which the 'FT' had access, Brussels will focus on the need to act in the face of the "recent challenges" to the "governance and trade based on international rules ", in a clear allusion to the aggressive trade policies of the Donald Trump Government.

This project also requires greater political pressure for energy contracts to be denominated in the single currency, as well as the channeling of euro-denominated financial businesses through registered platforms and the encouragement of the development of an EU payment system.

Brussels wants EU capitals to ensure that contracts concluded "within the framework of intergovernmental energy agreements" are denominated in euro. More than 80% of EU energy imports are paid in US dollars.

The European Union has been struggling to circumvent US sanctions against Iran with plans supported by France to create a "special purpose vehicle" that faces the practical difficulties, including the reluctance of countries to host it.

These Brussels plans also include the extension of rules requiring certain derivative contracts to be negotiated through platforms known as clearinghouses in order to promote the creation of net reserves of euro-denominated securities.

Proposals should be discussed by EU leaders at a meeting in Brussels at the end of December.



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