Global | The future of money at stake

Summary

Europe is seeking to strengthen the international role of the euro in the face of the U.S. dollar’s dominance in order to achieve greater geopolitical autonomy. The success of this challenge requires economic weight, institutional strength, and technological and financial innovation.

Key points

• Key points:
• The U.S. dollar dominates the financial system, accounting for nearly 90% of global foreign exchange transactions and close to 60% of world trade.
• The U.S. economy represents 15% of global real GDP, a figure similar to that of the European Union and one that is gradually being surpassed by China.
• U.S. fiscal deterioration is evident, with public debt hovering around 120% of GDP, increasing inflation risks and eroding credibility.
• On the technological front, while the United States is leaning toward private creation of dollars, the European Central Bank is moving forward with the issuance of a digital euro.

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