Europe To Reduce Dependence On The US Dollar

The European Commission has prepared a draft document on the need to strengthen the independence of the EU against the dominance of the U.S. and the U.S. currency in the global financial system, the Financial Times reported with reference to the document.

« The years of Trump’s presidency have highlighted our weaknesses, and we need to fix them even if he leaves. It’s about the EU’s place in the world – about having economic and financial strength comparable to our size, » the paper quotes a commission official as saying.

In particular, the newspaper reports that Trump’s Iran strategy has had a direct impact on financial infrastructures in Europe, such as the SWIFT system, Euroclear and Clearstream settlement systems.

The sanctions have forced the EU to create special mechanisms for trade payments with Iran.

« The EU should develop measures to protect EU operators in the event that a third country forces an EU-hosted financial and market infrastructure to comply with the sanctions it has unilaterally imposed, » the document says.

The EU also intends to strengthen the role of the euro. The document notes that global financial markets are too dependent on the U.S. dollar, which prevents the reduction of financial tensions and stability risks.

source: ft.com

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