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EU Commission wants to strengthen the euro as a world currency

2021-01-19T17:37:32.432Z


The ongoing dispute with Donald Trump has moved the EU to a new financial and economic strategy. Its cornerstones seem ambitious.


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Photo: Kenzo Tribouillard / AFP

The EU Commission wants to strengthen the euro as a world currency, expand its own financial markets and better protect European companies against unlawful sanctions by third countries.

This emerges from a new strategy with which the confederation is reacting to the ongoing dispute with the US government under President Donald Trump, the dominance of the dollar and the British exit from the EU.

Brexit is putting the EU under pressure to increasingly process specialized financial services previously provided in London in the EU.

Capacities must be built for this, otherwise the EU and the euro would be vulnerable, said Mairead McGuinness, Commissioner responsible for financial services.

At the same time, an EU sees the opportunity to become an even more influential force on the financial markets.

Because for the Corona aid, the EU Commission will for the first time take on debts on a large scale on behalf of the community, i.e. issue bonds.

"With the 'Next Generation EU', the EU will become one of the largest institutions in the world for issuing debt," said Economic Commissioner Paolo Gentiloni.

The EU relies on so-called social bonds and green bonds, i.e. bonds that meet certain sustainability criteria.

This offers the opportunity to develop the EU financial markets into the global center for "green" financial products, said Gentiloni.

The strategy also includes protection against extraterritorial sanctions against EU companies.

Experts are now to analyze how this should be done exactly.

The »Süddeutsche Zeitung« had reported on the plans in advance and put them in connection with negative consequences for EU companies after the US termination of the Iran nuclear deal.

Unilateral actions by third countries have affected legitimate trade and investments by EU companies in other countries, the report said.

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ssu / dpa

Source: spiegel

All business articles on 2021-01-19

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