Taking on the dollar
Supporters claim that mounting competition between Europe, the U.S. and China warrants further issuance of EU joint debt to tackle the dollar’s role as the global reserve currency.
With investors spooked by U.S. president Donald Trump’s erratic decision-making, funds from Asia and the Middle East are increasing their demand for EU bonds, which are currently issued for specific programs including the post-Covid recovery fund and the SAFE loan-for-defense scheme.
In a sign of growing confidence, buyers from the Asia-Pacific region purchased 28 percent of the Commission’s three-year bonds in April — up from 13 percent in the previous auction in March, according to data from the Commission.
“We are in a different mood … in which the European environment is more important than just the national one,” Letta said.
However, in more critical remarks, he compared Europe to a “petrified forest,” in which national stakeholders oppose changes to the status quo.
“Everything is like it was 30 years ago. The banks are the same. The energy providers are the same. Telecom operators are the same as 30 years ago. Because we decided to protect our national champions.”