The dollar’s decline as a global reserve currency, exacerbated by Moody’s downgrade, presents the EU with a unique opportunity to promote the euro. Increased demand for euros could lead to lower borrowing costs and greater stability during economic downturns, while Eurozone bonds, potentially conditioned to mitigate moral hazard, could enhance the attractiveness of European debt. By issuing common debt backed by member states, the EU can improve financing costs and foster economic resilience, ultimately benefiting all member nations, especially those with higher debt levels.
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The EU doesn’t need a deal with Trump
Ursula von der Leyen is meeting Donald Trump in Scotland to discuss trade as tariff deadlines approach, drawing insights from her recent summits with Japan and China. The article argues that the EU should not concede to US pressures, highlighting the unpredictable nature of Trump's negotiations and suggesting that both the US and EU have more to lose than appears. Want More Context? 🔎
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