EU Commissioner Valdis Dombrovskis announced that there is broad support for the euro to play a more significant international role, particularly in major transactions like energy purchases, which are usually settled in dollars.
During a press conference following a Eurogroup meeting, EU Commissioner for Economy Valdis Dombrovskis expressed broad consensus on the necessity of enhancing the euro's role in the global market. The initiative is not seen as a new goal, but rather as a response to rising global complexities that require strategic action. Many companies and institutions have relied on the US dollar for significant transactions, and this dependence has prompted the EU to reassess the euro's standing internationally.
The EU Commission is proposing that future major transactions, including energy purchases, be settled in euros instead of dollars. This shift is predicated on the belief that strengthening the euro could provide greater economic stability within the EU and reduce vulnerabilities associated with dollar transactions. Such a focus aligns with the EU's broader economic strategies aimed at enhancing the eurozone's influence globally.
Following the meeting, there was a clear indication of support among member states to advance the Commission's proposal. This potential shift in transaction currency could lead to significant implications: reducing the EU’s dependency on the US dollar, potentially increasing the euro’s value, and developing a more resilient economic framework for eurozone countries in the face of global financial fluctuations.
