The Euro’s Global Moment: Europe Seizes Opportunity Amid Shifting Economic Order

As the global economic landscape evolves, European leaders are pushing for the euro to play a more influential role internationally. With the US dollar’s dominance under pressure, the European Central Bank (ECB) sees a rare chance to reposition the euro as a leading global currency.

Euro’s moment to rise: Europe eyes global currency leadership shift

A Shifting Global Order

ECB President Christine Lagarde recently highlighted how the US-led system that supported global trade and finance is now “fracturing.” Rising protectionism and declining multilateralism are reshaping global dynamics — and challenging the long-standing dominance of the US dollar.

An Opening for the Euro

Lagarde argues this disruption could benefit the eurozone. A stronger international role for the euro would lower borrowing costs, shield the EU from currency shocks, and give the bloc greater economic independence. But she stressed that this status must be earned through economic strength, openness, and commitment to the rule of law.

Growing Investor Interest

ECB Executive Board member Isabel Schnabel echoed this optimism, noting increased investor interest in Europe. She pointed to rising public spending and Germany’s shift away from austerity as positive signals. According to Schnabel, these trends present a “window of opportunity” to build a more resilient and attractive European financial market.

Laying the Groundwork

To realize this potential, Europe must deepen its capital markets, support joint investment initiatives, and maintain macroeconomic stability. As Spanish central bank chief Jose Luis Escriva noted, the dollar’s dominance may be peaking — and the euro is well-positioned to step up, if Europe is ready to lead.