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Significance
The proposals identified areas where the euro could potentially become more dominant, such as the issuance of green bonds, digital currencies, and international trade in raw materials and energy. Ambitions to enhance the international leverage of the euro are being driven by the aim to strengthen EU strategic autonomy amid rising geopolitical risks.
Impacts
Developing its digital finance sector would be an opportunity for the EU to enhance its strategic autonomy in financial services.
Challenging the US dollar would require the euro-area to rebalance its economy away from foreign to domestic demand.
Member state division will prevent the economic reconfiguration the euro-area needed to make the euro a truly global currency.
Keywords:
EU,
EUR,
China,
Russia,
United States,
economy,
industry,
international relations,
politics,
social,
climate,
debt,
environment,
foreign investment,
foreign policy,
government,
monetary,
policy,
corporate,
fiscal,
health,
regional,
renewable energy,
technology
© Oxford Analytica 2021. All rights reserved. This content contains general information about geopolitical, macroeconomic and social developments or (where stated) other matters. It does not contain advice or recommendations that may be relied on. Where links to external websites are provided, this does not indicate that Oxford Analytica or Emerald agree with, endorse or have checked for accuracy the contents of said sites.
2021
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