EU Commission to back plans for more economic, financial autonomy – Bloomberg

The European Commission is set to unveil a blueprint on Tuesday, which will outline how the European Union (EU) can strengthen the internationalization role of the euro and thereby reduce the dollar’s dominance, Bloomberg reports, citing a draft of the plan.

The Commission’s likely move is considered to insulate the bloc from financial risks.

Key points from the draft document

“The extra-territorial application of unilateral sanctions by third countries has seriously affected the EU’s and its member states’ ability to advance foreign policy objectives, to honor international agreements and to manage bilateral relations with sanctioned countries.”

“At times, unilateral actions by third countries have compromised legitimate trade and investment of EU businesses with other countries.”

“The plan also includes measures to help protect against currency shocks, and allow greater scrutiny of foreign takeovers.”

“Promoting sustainable finance is an opportunity to develop EU financial markets into a global ‘green finance’ hub, bolstering the euro as the default currency for the denomination of sustainable financial products.”

Market reaction

EUR/USD keeps its range near 1.2100, up 0.17% on the day, mainly driven by a broadly weaker US dollar amid bigger fiscal stimulus expectations.

• EUR/USD testing 1.2100 amid USD pullback, ahead of ZEW, Yellen