European Central Bank President Christine Lagarde said the euro has the potential to become a viable alternative to the U.S. dollar, benefiting the 20-nation eurozone if financial and security structures are strengthened.
Speaking in TV interview with RTE One, on Tuesday, she noted that “The euro won’t gain global influence automatically; it must earn it.”
Recent U.S. economic volatility has led investors to reduce dollar exposure, often turning to gold due to the lack of alternatives.
However, the euro’s global role has stalled due to incomplete EU financial institutions and limited political will for deeper integration.
Lagarde stressed the need for a larger, more liquid capital market, stronger legal frameworks, and support for open trade backed by security measures.
