Reference Message Network reported on May 27 according to a report on May 26 of RT.com website, European Central Bank President Christine Lagarde said on the 26th that if the Eurozone can reform its financial and security framework, the euro may become a strong alternative to the US dollar.

Previously, Lagarde has asserted that the economic policies of the U.S. government are prompting global investors to reconsider their reliance on the US dollar. The other two reasons for the declining dominance of the US dollar are the growing concerns over the surge in US debt and the US government using the US dollar as a geopolitical weapon to impose sanctions and freeze assets at will.

However, the euro also faces similar problems. Since Western countries imposed sanctions on Russia citing the Ukraine conflict, Russia and its trading partners have increasingly avoided euros and US dollars, opting instead to use their own currencies for trade.

Nevertheless, Lagarde still considers it a "great opportunity" for the euro to expand its influence. She pointed out that the uncertainty of Trump's administration trade policy is the key factor causing investor concerns. Lagarde said: "The constant changes create opportunities for a euro moment globally. However, the euro will not automatically gain influence - the euro must actively seek influence."

Lagarde emphasized that to narrow the gap with the US dollar, European countries will need to improve the single market, enhance legal consistency, and reform domestic financial systems. She also noted that increasing the use of the euro in international trade invoicing, improving cross-border payment mechanisms, and strengthening liquidity support measures led by the European Central Bank would also be helpful.

Lagarde also pointed out that enhancing joint financing, including joint financing in the defense sector, is necessary to consolidate the status of the euro. "If we want to enhance the global status of the euro, we need stronger military capabilities." (Translated by Liu Ziyan)

Original article: https://www.toutiao.com/article/7509125123031450121/

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