EU sets out plans to limit US dollar reliance, reduce sanctions risks
The European Union has set out plans to strengthen the international role of the euro, as its seeks to erode the dominance on the U.S. dollar and lessen the bloc’s vulnerability to financial risks, including U.S. sanctions.
The plan includes measures to help protect against currency shocks, and allow greater scrutiny of foreign takeovers, according to a draft of the proposal obtained by Bloomberg. The plan to foster “openness, strength and resilience,” was earlier reported by the Financial Times.
“The extra-territorial application of unilateral sanctions by third countries has seriously affected the EU’s and its member states’ ability to advance foreign policy objectives, to honor international agreements and to manage bilateral relations with sanctioned countries,” the document says. “At times, unilateral actions by third countries have compromised legitimate trade and investment of EU businesses with other countries.”
U.S. President Donald Trump has imposed a slew of sanctions on individuals and countries including China, Iran, Russia, North Korea and Venezuela that have affected companies and payment services across the globe. The U.S. has also pressured EU nations to abandon an alternative payment system meant to shield European trade with Iran from American sanctions.
“The extra-territorial application of unilateral sanctions by third countries has seriously affected the EU’s and its member states’ ability to advance foreign policy objectives, to honor international agreements and to manage bilateral relations with sanctioned countries,” the document says. “At times, unilateral actions by third countries have compromised legitimate trade and investment of EU businesses with other countries.”
U.S. President Donald Trump has imposed a slew of sanctions on individuals and countries including China, Iran, Russia, North Korea and Venezuela that have affected companies and payment services across the globe. The U.S. has also pressured EU nations to abandon an alternative payment system meant to shield European trade with Iran from American sanctions.
Comments
Chachacheah 4 year ago
Getting out of US$ will neutralise USA's power to implement illegal unilateral sanctions on other nations at will... Will have to compete & earn its keep like any other nation. US$ will drop to a more realistic value... 🤔👏👏
Oh ya 4 year ago
In short this means the world sees the world reserve currency the USD is headed for the ditch just like all reserve currencies before it. And when it loses that status the people of the US will see unhappiness like they have never seen before. The US Government is doing this to themselves by all the money printing they are doing. So be sure to thank you own government when your dollar is worth 25 cents
