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19 January 2021

POLITICO: EU prepares euro plan in post-Trump, Brexit world


Commission aims Wednesday to champion its currency as a defense of its companies and values. Brussels is ramping up plans to take on the U.S. dollar’s global influence by boosting use of the euro through financial markets, trade and foreign policy.

The European Commission is set to announce its intentions as soon as Tuesday in a policy paper unveiling few new initiatives since a 2019 staff document. But under new leadership, the EU executive body is bringing fresh urgency after Brexit and disputes with the U.S. over trade and sanctions, according to a draft obtained POLITICO.

The plan “allows the EU to defend its interests internationally and stand up for its values,” said the 18-page draft, which is still subject to change before commissioners adopt it.

Boosting the euro could help lure financial dealing away from the City of London and shield European companies from U.S. sanctions on matters such as Iran's nuclear program or Russia's gas pipeline.

The announcement delivers a rude welcome gift to President-elect Joe Biden, who will be sworn in Wednesday, and serves as a reminder of disputes during Donald Trump's four years in office.

Biden’s assurances of improving relations will not lessen Brussels’ desire for a greater role for the euro, which stands to be helped by EU plans to issue €850 billion in bonds for its pandemic recovery fund and unemployment reinsurance program.

The Commission will also lobby financiers and industries to conduct their commerce in euros, the draft said, highlighting the world’s markets in energy, commodities, healthcare and aircraft.

POLITICO



© POLITICO


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