The European Union is now openly downplaying the US dollar saying that the euro could be the next global currency. The European Central Bank Governor Christine Lagarde argued that the next viable option to the US dollar is the euro. In a speech in Berlin, she stressed that the erratic economic policies of the White House have spooked global investors away from US-based financial assets.

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The exposure to the US dollar is on the decline and the European Union is aiming to seize the opportunity. “The ongoing changes create the opening for a ‘global euro moment’,” said Lagarde. Many have opted for other leading currencies while most of the investments have flown into gold. Even Asian-based financial assets, especially in China have received an influx of funds this year.

European Union Wants the Euro to Replace the US Dollar

America’s global dominance is now being questioned by its closest ally. The European Union has expressed displeasure on Trump’s tariffs and trade wars leading to a rift between the two allies. They have now targeted the US dollar and the European Union is pushing the euro as the next global currency. Lagarde also hit out at the White House for not being inclusive and sidestepping other nations for their benefit.

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“The global economy thrived on a foundation of openness and multilateralism underpinned by US leadership but today it is fracturing,” she said, indicating that the European Union and the euro will soon take the dollar’s place. She also explained that alliances honor only those who provide security and benefits to each other’s economy.

“Geopolitical assurance in another form, they invest in the assets of regions that are reliable security partners and can honor alliances with hard power,” she said. Whether the European Union will make the euro the next alternative option after the US dollar, only time can tell.