The global financial system is experiencing notable changes as the euro positions itself as a serious alternative to the US dollar. With approximately 20% of global reserves, the euro is gaining traction, especially after the ECBâs robust responses during crises, including a significant bond-buying program and the establishment of a historic recovery fund. This shift reflects not only a move towards a multipolar financial world but also adaptation in fiscal policies, displaying Europe's increasing readiness to engage actively in defense and security spending as geopolitical dynamics evolve.
We are witnessing a shift toward a multipolar financial world. The issue is not competition with the dollar, but how the euro is paving its own path forward.
The response to the pandemic fundamentally changed how global markets view European assets.
Brussels is showing readiness to revise EU budget rules to allow member states to increase spending on defense and security.
The creation of an â¬807 billion recovery fund marked a groundbreaking approach compared to prior policies.
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