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
"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