The head of the European Central Bank, Christine Lagarde, stated directly: the euro can become a real alternative to the dollar — but only on the condition of a radical strengthening of the financial architecture and defense capabilities of the EU.
What's at stake?
The dollar is falling — its share in reserves has decreased to the lowest level in decades (~58%), while the euro remains at ~20%.
A wave of instability in the US is causing investors to reduce their exposure to dollars. But they are currently investing in gold, not in euros — a chance for Europe!
What Europe must do 💪:
1. Reform the financial market — create a deep, unified, and liquid capital market.
2. Strengthen the legal framework and deepen trade ties — new agreements, digital euro payments, swap lines.
3. Invest in defense — strong security = attractive for official investors.
4. Move to common borrowing — issue euro bonds to create ‘safe’ assets that everyone will value.
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🔥 Why this is an explosive idea:
The EU can reduce dependence on the dollar, protect itself from sanctions, refinance advantageously, and strengthen economic and political autonomy.
Lagarde called the current situation a ‘global euro moment’ — a chance to earn it, not by default 🏆.
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But there are risks ⚠️:
The ‘German fear’ of common debt has repeatedly stomped down, refusing to take on ‘the sins of others’.
As long as capital remains fragmented, resources are not united — this is a ‘failure in systemic capacity’.
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The final mix:
The euro truly has every chance of becoming the second global asset, but strong reforms are needed — markets, laws, defense, and unified finances. Without this — at most, a gold reserve, without a real breakthrough.
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😈🔔 Europe has set the bar for global currency evolution. But are EU leaders ready to go beyond words? 🔔😈