The president of the ECB, Christine Lagardesaid that “This is the global moment of the euro”. In an editorial on the Financial Times, the number one of the Eurotower illustrated his thesis, according to which the upheavals of the balance global triggers by geopolitical changes and come on duties of the Trump Administration, have questioned some cardinal elements of the past decades, including “also the dominant role of the US dollar“.
A situation emerges that creates aopportunity to increase the global positioning of the eurowhich “would bring tangible benefits: lower funding costs, less exposure to currency fluctuations and isolation from penalties and coercive measures”.
The Lagarde recipe
“In order for the euro to reach its full potential – highlighted the president of the European Central Bank –Europe must strengthen three pillars Fundamental: credibility geopolitical, economic resilience and integrity legal and institutional“.
To do this you have to face structural challengeslike the economic growth that proceeds slowly, but also the fragmentation of the markets of capital in Europe, as well as “The offer of safe titles High quality “, a point where, according to Lagarde, the union is late.” We must act resolutely to take on greater control in Europe of our destiny, “he underlined.
The role of trade
Lagarde recalled that “the global position of the euro is based on role of Europe in trade. The EUè the main commercial operator in the world: it is the main partner of 72 countrieswhich represent almost the 40% of global GDP. This is reflected in the share of the euro as a billing currency, which stands around 40%. The EU must take advantage of this position to its advantage by entering into new commercial agreements “.
European institutions
“There trust of investors in a currency is ultimately linked to the solidity of the institutions that support it – he continued -. Of course, the EU is not easy to understand from the outside. But its structured and inclusive decision -making process guarantees weights and counterweights, stability and political certainty. Respect for the rule of law and the independence of key institutions, such as the ECB, are crucial comparative advantages that the EU should exploit “.
“To further strengthen these advantages, we must reform the institutional structure of Europe – suggested the President of the ECB -. It is no longer possible to allow a single veto the collective interests of the other 26 Member States. A greater number of majority qualified votes in critical sectors would allow Europe to speak with a single voice “.
