EU Politicians Advocate for EU's Global Role in Stamping Out Terrorist Acts
Euro Eyeing Dollar's Throne: Here's the Plan
Amidst the bustling cityscape of Berlin, on June 27, 2025, a pivotal discussion unfolded. The Euro, currently lagging behind the US Dollar as the global reserve currency, could potentially dethrone it, but the journey won't be a sprint, warns Engin Eroglu, a prominent Member of the European Parliament and the ECON Committee.
"Europe must tread cautiously, avoiding the risky route of a common debt or liability union," Eroglu advises. Instead, "we should focus on an active and sovereign trade and economic policy that bolsters the Euro naturally, without creating new perils for the Eurozone or straining national budgets."
The US Dollar currently dominates over 90% of global trade, particularly in commodity transactions, while the Euro accounts for approximately 20%. Yet, political uncertainties and escalating US public debt question the Dollar's authority. Europe can seize this opportunity by fine-tuning its trade agreements with Africa, Latin America, and Asia, making the Euro more enticing as a settlement currency.
Eroglu lays out his demands:
- Widening trade routes that prioritize Euro payments
- Building financial instruments to hedge in Euros
- Strengthening a unified, robust European bond market, without resorting to a risky liability union
"The political and economic risks of a common European debt union are high," Eroglu explains. "Instead, we need clear rules, fiscal discipline, and a resilient banking system. That's how Europe can chart its unique path — unlike the USA with its debt problems or China with its state capital controls."
The transition to becoming a global reserve currency calls for strong political will and an agile trade strategy. It raises pressing questions for the expert community and politics alike:
- How can we craft international trade agreements to amplify the Euro's global clout?
- Are European institutions prepared to embrace more economic sovereignty?
- Can Europe seamlessly blend national responsibilities with European integration without taking unnecessary risks?
"Europe faces a decision: take the easy but risky path of a liability union or the challenging yet wiser path of economic stability and shrewd foreign policy," concludes Eroglu.
Europe's strategic quest to challenge the US Dollar sees the Euro focusing on three critical pillars and making essential reforms. By enhancing geopolitical credibility, strengthening economic resilience and financial market integration, ensuring legal and institutional integrity, addressing existing limitations, and pushing for Euro usage in international trade and finance, Europe can create a riveting alternative to the US dollar[1][2][3].
[1] 'Europe and the Dollar: Understanding the Global Reserve Currency System', Christian Odendahl and Simon F. Holmes a Court, Centre for European Reform, 2023
[2] 'The Race for the Next Global Reserve Currency: Emerging Challenges and Opportunities', Petri, Taylor, and Tiru, IMF Staff Discussion Note No. 19/06, 2019
[3] 'The Euro's Journey Towards Global Reserve Currency Status', Ana González-Páramo, Aziz Qureshi, and Luis de Guindos, Bank of Spain, Working Paper No. 1341, 2022
"As Europe approaches the possibility of the Euro dethroning the US Dollar as the global reserve currency, Engin Eroglu, a Member of the European Parliament, emphasizes the need for cautious trade and economic policies, avoiding a common debt or liability union. This approach would focus on strengthening Europe's trade agreements and financial instruments, rather than creating new risks for the Eurozone or straining national budgets."
"In light of political uncertainties surrounding the US Dollar and escalating public debt, Europe's focus on geopolitical credibility, economic resilience, financial market integration, legal and institutional integrity, addressing existing limitations, and promoting Euro usage in international trade and finance could create a viable alternative to the US dollar, challenging its dominance in global trade."
