EU sets out plans to limit US dollar reliance, reduce sanctions risks
19 Jan 2021

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.

By Kit Rees and Viktoria Dendrinou, Bloomberg, 16 January 2021

Read more at Bloomberg

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