/ world today news/ The European Union will strengthen the role of the euro as a world reserve currency against the dollar, including the creation of euro-denominated assets, the issuance of special eurobonds and the creation of a digital euro, according to a document published by the European Commission (EC).
“The EU should promote a stronger international role for the euro, encouraging partner countries to expand its use, supporting the creation of euro-denominated assets and instruments and strengthening the euro’s status as a world reserve currency,” the text of the document quoted TASS as saying.
It emphasizes that the euro should become the main currency for investment in alternative energy projects around the world, and to this end the EU intends to use green Eurobond issues as widely as possible.
In addition, the European Commission notes that the European Central Bank is working on a project to create a digital euro currency from 2019, which should complement the classic form of the European currency.
“The European Commission considers it necessary to significantly increase the international role of the European currency, which will reduce our dependence, reduce the cost of our transactions and increase the geopolitical influence of the European Union,” said the European Commissioner for Economic Affairs Paolo Gentiloni, presenting this project.
“We will place up to €1 trillion of denominated debt by 2026, which will allow investors to invest heavily in the euro,” he stressed. According to him, by issuing these Eurobonds, in particular, the European Commission intends to finance the economic recovery program of the community after the pandemic in the amount of 750 billion euros.
“The share of the euro in the world’s gold and foreign exchange reserves is about 20% and has practically not changed since the creation of this currency 20 years ago (the euro was introduced into cashless circulation on January 1, 1999, in cash – on January 1, 2002 .). At the same time, the share of the dollar decreased from 70 to 60%, the share of other currencies, in particular the Chinese yuan, increased from 10% to 18%, “said the European Commissioner. He also highlighted that the euro accounts for up to 38% of all transactions in world trade.
An integral part of the same European Commission document was the proposal for a mechanism to increase the effectiveness of the implementation of European sanctions against foreign countries, citizens and companies and the development of new measures to protect their businesses and citizens from extraterritorial sanctions of third countries. The US is not directly mentioned in this document.
“The European Commission proposed to create a single database on sanctions, which would ensure the exchange of information on their application and give all interested services a single tool to obtain information on the EU’s sanctions mechanisms. In addition, we intend to create an anonymous service to receive denunciations in case of violation of EU sanctions, the document says. “The European Commission will also ensure that EU funds sent to international organizations in third countries are not used to breach European sanctions regimes.”
“The European Union also intends to strengthen its ability to defend against the illegal application of foreign extraterritorial sanctions [срещу граждани и компании от ЕС]”, the text says.
In particular, the EU intends to strengthen the effect of the so-called blocking regulation, which declares all foreign extraterritorial sanctions invalid in the EU and empowers EU courts to entertain claims by European citizens and companies affected by such restrictions.
We remind you that in July 2020, 16 large banks from Germany, Belgium, Spain, France and the Netherlands announced the start of work on the creation of a European payment system.
Translation: PI
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