EU pushes for broader global use of euro to challenge dominant dollar
US withdrawal from the Iran nuclear deal spurs European Commission to urge companies and states to increase use of the EU currency in energy contracts
Brussels — The European Commission published on Wednesday nonbinding proposals to boost the role of the euro in international payments and its use as a reserve currency to challenge the dominance of the dollar. The move follows the decision by the US to withdraw from an agreement with Iran on its nuclear programme. That has forced many European companies to stop trading with Iran to avoid US sanctions. The European Commission called on companies and states to increase their use of the euro in energy contracts. It said it would study possible measures to promote the EU currency in financial and commodity markets. “The decision to use a currency is ultimately made by market participants,” the commission acknowledged. The most effective way to widen the euro’s international role was to overhaul the 19-country currency union and adopt financial reforms that have been blocked for years by conflicting national interests. In the 20 years since its adoption, the euro’s international role re...
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