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For the euro there is no shortcut to becoming a dominant currency
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For the euro there is no shortcut to becoming a dominant currency

Guntram B. Wolff and Grégory Claeys
Bruegel, 2020
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Editorial Rating

7

Qualities

  • Analytical
  • Overview
  • For Experts

Recommendation

On its launch in 1999, the euro vaulted swiftly to its position as the world’s second leading currency, and flawed policies, the euro crisis and institutional miscues have kept it there ever since. The European Union is now mulling a more commanding global role for its currency, but as this scholarly report from experts Grégory Claeys and Guntram B. Wolff reveals, large-scale institutional reform is essential for the euro to compete with the US dollar for monetary preeminence and safe haven status.

Take-Aways

  • Many advantages accrue to the United States because of the US dollar’s reserve currency status.
  • The euro meets only some conditions to qualify as a leading currency.
  • To promote the euro, EU leaders must restructure the monetary union’s institutions.

About the Authors

Grégory Claeys is a research fellow at Bruegel, where Guntram B. Wolff serves as the director.

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