Expanded ties with countries wounded by US tariffs could reinforce the world's world role, says the ECB

Europe must act quickly to reinforce the overall role of the euro, since the window of opportunity to do so can close, and the block must look for greater ties with the nations most affected by US tariffs to help you achieve that, said the head of the French Central Bank.

The erratic economic policy of the United States has shaken the confidence of investors in the dollar this year, but so far Europe has fought to capitalize on the opportunity it presents, promulgating changes too slowly due to indecision, discord and bureaucracy.

When describing a large number of possible courses of action, Francois Villery of Galhau said that time was essential and it was essential that Europe established a term, such as January 1, 2028, to promulgate changes.

“If we do not react quickly, we have a serious risk of the window of opportunity to close,” said Villeroy in a speech in Luxembourg.

The currency could gain greater prominence if the block invoiced more of its foreign trade in euros, and there was an opportunity to do so with nations especially hurt by the commercial policy of the United States.

“We could take advantage of EU negotiations with commercial partners who have been affected by the new protectionist measures of the United States, for example, India, Switzerland, Indonesia,” said Villey.

To support said trade, the ECB could further expand the availability of euro liquidity lines to the central banks of the non -euro zone.

This process could be further reinforced if the ECB could finally issue a digital currency and extended its objective wholesale payment system to accept coins from countries such as India, Switzerland, the United Kingdom, Canada or Brazil, said Villery.

Another critical problem that retains the euro is the relative shortage of a liquid insurance asset. Europe could address that possibly merging the existing supranational debt and transforming the existing sovereign debt into genuine European sovereign debt instruments, suggested.

Other steps to strengthen the euro could include risk capital reinforcement, create a European supervision framework for investment funds and create a new legal and regulatory regime panel that companies can opt, replace cumbersome and fragmented national regimes, he said.