Christine Lagarde urges Europe to shield the euro in the face of the global removal of the US dollar
By Angel di Matteo @Shadowargel
Within the framework of the impopularity of the dollar at the rate of the measures taken by the US, the president of the BCE He urged nations to take advantage of the time to position the euro at regional and international level.
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- The president of BCE He warned that Europe cannot depend on external shocks.
- He “GOOD MOMENT OF THE EURO” It could come if the US weakens its international cooperation.
- Brussels drives the new Savings and Investment Union To channel internal capital.
💶 Urgent: Christine Lagarde urges Europe to shield the euro
Given the dollar replication, the ECB seeks that the euro be a global option.
Lagarde underlines the need to transform weaknesses into strengths.
It is urgent to harmonize regulations and foster internal investment. pic.twitter.com/ynsn7vufv0
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The president of European Central Bank (ECB)Christine Lagarde, asked the governments of the block to strengthen the economic bases of the euro and not just resist external impacts. In a speech in Paris, he warned that the Eurozone must transform its economic opening into resilience if you want to keep the currency as a stability pillar in times of world uncertainty.
Lagarde stressed that capital flows to the region, when they seek refuge, usually appreciate the currency and harm European exporters. “If we reinforce the foundations of the euro now, we can transform our opening into resilience and our weaknesses in strengths”he said, according to statements reviewed by Bloomberg.
A “GOOD MOMENT OF THE EURO” Before the weakness of the dollar
The president of BCE He stressed that the international replication of the United States under Donald Trump is reopening the debate on the role of the dollar as a global reserve currency. In that context, some European officials believe that the call is approaching “GOOD MOMENT OF THE EURO”an opportunity to consolidate its role as an alternative to the dollar, although the advances have been limited since Lagarde mentioned the issue in May, he reports Cryptopolitan.
Although the sovereign bonds with maximum rating in the euro zone add € 6.6 billion (USD $ 7.7 billion), that amount barely represents a fifth of the bond market Treasure United States. European stock exchanges are worth less than half of the US stock market. UU., And they are not so efficient in channeling investment towards the real economy.
Lagarde insisted that Europe must build an environment where capital flows to productive sectors, generating a virtuous investment and growth cycle that strengthens the international credibility of the euro.
To achieve this, the president of the BCE He pointed out that Europe needs to harmonize regulations, tax systems and bankruptcy laws that today differ between countries. He also highlighted structural problems such as high energy costs, stagnant productivity and the lack of will of the Member States to finance common projects that benefit the entire Union.
These imbalances, according to Lagarde, prevent the euro from evolving towards a coin with global influence comparable to the dollar. Without greater economic and financial integration, he warned, Europe runs the risk of being trapped between powers of powers such as the US. And China.
The Savings and Investment Union: The new attempt by Brussels
In response to these challenges, the European Commission recently launched the Savings and Investment Uniona renewed version of the old Capital market union. Its goal is to create a single capital market that encourages the investment of Europeans in financial assets and reduces external financing agency.
The challenge is large: the citizens of the block accumulate near € 33 billion In savings, the majority immobilized in cash or traditional bank deposits. Unlike Americans, Europeans tend to avoid risk and maintain their capital outside investment markets.
To reverse that trend, Brussels proposes financial education campaigns and incentive policies that promote the opening of investment accounts. But the central axis are the Tax changes: Fiscal deductions for new investors, tax exemptions on reinvested profits and a system that serious funds only at the time of the withdrawal are raised.
National resistance and more bureaucracy risk
The main obstacle is that taxes are exclusive competence of each Member State. Many governments refuse to give control over their fiscal systems, fearing a loss of sovereignty. In addition, some financial sectors warn that new rules could generate more procedures, at a time when the European Union tries to reduce bureaucracy.
Even so, Lagarde insisted that only a coordinated strategy will allow Europe to turn its weaknesses into strengths and consolidate the euro as a truly global currency.
Written article with the help of an AI content editor, edited by Angel Di Matteo / Diariobitcoin
Original image of Diariobitcoin, created with artificial intelligence, for free use, licensed under public domain.
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