EU plans to challenge dollar dominance ‘politically unrealistic’

Author: Olly Jackson | Published: 14 Dec 2018

EU plans to promote the euro as a reserve currency capable of challenging the longstanding dominance of the US dollar are likely to fail unless politically unrealistic moves such as introducing eurobonds are made.

Christian Odendahl, chief economist at the Centre for European Reform, said that without changes that appear to be politically unrealistic at present, the EU is unlikely to exploit the US upheaval disturbing investors.


"It is unlikely that the euro can replace the US dollar as the global currency"


"It is unlikely that the euro can replace the US dollar as the global currency," he said. "The EU would need to ensure there are enough safe assets but to do so it would need to share liability across all of the EU27."

In a particularly divisive time and with the eurozone debt crisis still fresh in the minds of policymakers, it’s unlikely that leaders would agree to a seemingly...