Seizing the "Global Euro Moment"
At a lively event at Berlin's Hertie School, European Central Bank President Christine Lagarde laid out a bold roadmap for Europe's currency to take on a bigger role worldwide.
With the U.S. dollar's grip on global finance loosening—the greenback's share of foreign exchange reserves has slumped to its lowest since 1994—Lagarde sees a "global euro moment" on the horizon.
She warned that the current fragmentation of the international monetary system poses risks but also opens the door for the euro. A stronger euro could bring:
- Lower borrowing costs for governments and businesses across the euro area.
- Boosted internal demand and, by extension, more economic resilience.
- Greater control for Europe over its own financial destiny.
Today, the euro accounts for roughly 20% of global foreign exchange reserves, making it the world's second most-used currency after the dollar. But, as Lagarde stressed, "it will not gain influence by default."
To turn ambition into reality, she outlined three pillars:
- Open trade backed by security: Keep markets accessible while strengthening credible security capabilities.
- Attracting global capital: Reinforce the euro area's economic fundamentals to make it a magnet for investment, from tech startups to green energy projects.
- Defending the rule of law: Solid legal frameworks that ensure trust and transparency.
For travelers and digital nomads, a robust euro could mean more predictable costs on the road. For entrepreneurs, it could translate to easier access to financing across borders. And for policymakers, it's a chance to reshape Europe's role in a changing world economy.
As central banks diversify—adding gold and other assets to their reserves—Lagarde's call is clear: Europe must seize this moment. "This is a prime opportunity for Europe to take greater control of its own destiny," she said.
With the stage set for a currency showdown, all eyes are on whether Europe can deliver on this vision and claim its share of the global monetary spotlight.
Reference(s):
ECB chief calls for stronger role of euro, points to dollar decline
cgtn.com
