The trade and financial policies of US President Donald Trump are supposed to break investors' confidence in the dollar, creating an opportunity for the Euro to challenge its world domination. The Trump administration has created conditions that may raise the European currency to the status of a global reserve currency.
Some figures from the Trump team consider the international dollar force as a burden that inflates its value and harms American manufacturing. However, others, including the secretary of the Treasury Scott Bessent, believe that a strong dollar is what is best for the United States.
The EU does not want the greenback to continue to be the most used currency in stabbed, considering digital assets as another global source of demand for titles of the US Treasury.
Trump's pricing policies erod confidence in the dollar
The dollar attractiveness is undermined by a wave of unconventional and disturbing financial ideas floated by Trump's allies. Bloc countries oblige the conversion of the bonds of the Treasury to impose costs on creditors who pay the US government.
Administration hostility towards business partners made global investors uncertain of the reliability of American financial instruments.
Analysts and economists say that the moment could be a “Hamiltonian” turning point for the euro zone, referring to the unification of state debts by American father Alexander Hamilton under the federal management. Europe issues a permanent and considerable basin of joint debts which could help replace the current patchwork of national bonds with a single asset in liquid euro zone.
One of the measures proposed is to stop repaying the debt issued for the “Next Generation EU” recovery fund of the block, originally planned to shrink by 2058. Instead, those responsible could choose to drive it indefinitely, preserving a permanent permanent asset.
Another option is to consolidate the existing debt supported by the EU in a single emission system to rationalize loans and provide investors with clarity and scale. He could also support proposals such as a joint of 150 billion euros defense Expenditure plan.
The EU could also start borrowing in advance from its next seven -year budget, which should exceed 1 Billion of euros, in order to maintain a large bond market in stable euros.
Expand the secure asset market in the euro zone
Europe could take advantage of Trump's prices and ask the partners to reconsider their dependence on the USD, expanding its commercial footprint worldwide. If trade with the United States becomes more disturbing, the maintenance of its currency becomes less necessary.
However, despite the feasibility of these tools, progress has been blocked by political inertia. Observers argue that what is missing is not a technical capacity, but geopolitical will. European leaders must realize that America is making strategic errors that have made the dollar and increased treasury yields.
Meanwhile, the euro detained More than $ 1.13 last week, inflation data for the euro area surpassed expectations. Annual inflation remained stable at 2.2% in April, slightly above forecasts, while the inflation of services increased to 3.9% and central inflation increased to 2.7%.
President Trump to tax foreign manufacturing films
Elsewhere, President Trump declared a new 100% price on the films made in foreign countries. According to the BBC, Trump said that the films will be used to spread propaganda against America and accused foreign governments of having attracted American studios abroad by tax alternatives and subsidies.
“It is, in addition to everything else, messaging and propaganda!” Trump wrote on Truth Social. “We want films made in America, once again!”
Commerce Secretary Howard Lutnick confirmed The administration would implement the new sample soon. However, it is not clear if the prices would apply to American production companies that run abroad or how they would affect films on streaming platforms such as Netflix.
Several blockbusters, including Deadpool and Wolverine,, WickedAnd Gladiator IIhave all been killed outside the United States.
The Australian Minister of Internal Affairs, Tony Burke, told journalists on Monday that the government “would present himself unequivocally for the rights of the Australian screen industry”.
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