European Commissioner for Trade and Economic Security Valdis Dombrovskis, in a speech on 1 June 2026 at a DG ECFIN conference on the International Monetary System and the Role of the Euro, argued that the euro is well positioned to fulfil its potential as a truly global currency, citing the currency's fundamental strengths and the changing global landscape. Dombrovskis noted that the US dollar's status as a safe haven was challenged following Washington's tariff announcements in April 2025, when the dollar fell and US Treasury yields rose, an episode he characterised as a "reserve currency shock" that may signal investors are open to seeking alternative safe havens.
Dombrovskis outlined three strategic assets underpinning the euro's potential: resilience at home, global reach, and readiness to meet future challenges. On resilience, he pointed to the EU's economic scale — a Single Market of 450 million consumers and a GDP of €18 trillion — trusted institutions, and a stable macroeconomic environment. He stressed the need to maintain sustainable public finances, boost competitiveness, remove Single Market barriers, create a more unified capital market, and deliver on defence commitments, noting that "a currency cannot sustain global reserve status without the hard power to back it up."
On global reach, Dombrovskis highlighted the EU's openness to trade, citing the conclusion of major trade agreements with Mercosur and India in 2026, the EU's role as the largest provider of Official Development Assistance (42% of global aid in 2022-2023), and the €300 billion Global Gateway investment programme. He argued that these relationships extend Europe's presence and encourage use of the euro in international transactions, while a stronger international role for the euro enhances the EU's economic security and diplomatic leverage.
On readiness for the future, Dombrovskis emphasised the digital euro as "the most significant step forward since the euro was launched," providing a digital monetary anchor and reinforcing strategic autonomy through a sovereign, pan-European payment system. He called for completing the legislative work and accelerating preparatory steps.
Dombrovskis addressed concerns about a stronger euro leading to a stronger exchange rate, arguing that deep financial markets can absorb inflows without a long-term link between reserve currency status and real effective exchange rates, citing the US dollar as an example. He concluded that the euro has "what it takes to go global" and that now is the moment for it to develop a global role reflecting its political, economic and financial weight.
The speech contained concrete proposals including completing the digital euro legislative framework, deepening capital markets, and concluding trade agreements, but remained largely declarative on specific numerical targets or deadlines. The policy orientation is towards increasing the euro's international role to enhance EU strategic autonomy, reduce dependence on the US dollar, and lower borrowing costs for European governments, businesses, and households.
EU businesses and households would benefit from lower borrowing costs and reduced exchange rate volatility, but may face transition costs from adapting to a digital euro and deeper capital markets. EU financial institutions would gain from increased demand for euro-denominated assets but could face competition from a digital euro. EU governments would see reduced borrowing costs but must maintain fiscal discipline to sustain confidence. Non-EU countries holding euro reserves would gain a structural stake in stable relations with the EU, but may face adjustment costs in diversifying away from the dollar.