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| Europe |
| EU pushes euro to break dollar dominance |
| 2018-12-06 |
| [PRESSTV] The EU commission on Wednesday presented its plan to reduce the dollar's overwhelming dominance of the global economy and to strengthen the role of the euro, particularly for energy transactions. European capitals are increasingly frustrated with the global dominance of the dollar as a reserve currency, which hands the United States unparalleled diplomatic and economic power in a globalized world. Governments, banks and multinationals are at the mercy of US authorities, which have the legal power to switch off access to the world economy if any company or country should run afoul of Washington. "In the current context of incertitudes -- trade conflicts, extra territorial sanctions by the US -- the market participants are looking for alternative," said EU economics affairs commissioner Pierre Moscovici at a news conference in Brussels. The most frustrating recent example for the EU is Iran, where international companies that choose to trade or invest with the Islamic Theocratic Republicdespite US sanctions are vulnerable to punishment by Washington in part through their use of the dollar. The single currency -- born on January 1, 1999 -- "should reflect the political, economic and financial weight of the eurozone", the single currency bloc of 19 EU countries, said European Commission Vice-President Valdis Dombrovskis. |
| Posted by:Fred |
| #9 particularly for energy transactions In other words, "we don't have any energy of our own, but don't want to pay in dollars for yours. Wah!" |
| Posted by: Spot 2018-12-06 15:20 |
| #8 prior to the Euro the Pound was pretty solid as was ( is ) the Swiss franc. but thats about as "solid" as they ever got |
| Posted by: 746 2018-12-06 11:39 |
| #7 The Euro will not "knock off" the U.S. dollar anytime soon (probably never). Currently 62.70% are held in dollars, 20.15% in euro (Euro was already at 27% at the height of the financial crisis, but dropped when the euro crisis hit). I see 30% as an achievable goal in ten years. Of course we don't know what kind of crisis Europe or the U.S. may experience. We also don't know what will happen in China. People seem to exaggerate the consequences of sanctions. Let's face it: Most sanctions the U.S. prescribes are well warranted. |
| Posted by: European Conservative 2018-12-06 09:56 |
| #6 Good luck with that. The Dollar is dominate because of the trust the world has that the US economy is still good and the US will be around tomorrow to back it up. The EU is not a solid union, as much as the leaders wish it would be. And there is serious doubts on its ability to keep countries in its union and if the Euro will be around in a decade. Therefore the Euro will not knock off the dollar until that happens. Or the US descends into Civil War. |
| Posted by: DarthVader 2018-12-06 09:10 |
| #5 Well, it appears they are so strong as to be responsible for their own defense. Time to unass the place, yesterday. |
| Posted by: Procopius2k 2018-12-06 08:14 |
| #4 The EUSSR doesn't understand economics. Tariffs are vastly preferable source of state funding then income taxes (including VAT). |
| Posted by: Bright Pebbles 2018-12-06 07:23 |
| #3 You don't understand tariffs, do you? |
| Posted by: European Conservative 2018-12-06 04:25 |
| #2 35% tariff on Holy Roman Empire (French and German) goods. |
| Posted by: Fat Bob Thud8929 2018-12-06 01:01 |
| #1 Hahaha EU sucks and their people are incompetent. They couldn't knock the dollar off if they tried. Talk, talk, talk is all they do. Plans for the future - the far future. |
| Posted by: Herb McCoy 2018-12-06 00:38 |