A stronger role for the euro

One of the strengths of the United States is its currency – the dollar. The strength lies in the fact that a number of commodities are priced and traded exclusively in the US dollar. Examples include gold and oil. As a result, when the US takes a stand in its foreign policy and imposes sanctions, companies in other countries that trade in dollars, have to obey those economic sanctions. This is what is currently happening in the case of Iran. Following the imposition of US sanctions against Iran, firms from EU countries withdrew their investments from that country as they were faced with the possibility of punitive secondary sanctions from the US. The EU, unlike the US, wants to maintain the nuclear deal with Iran signed in 2015, but needs to deliver on its side of the bargain by increasing trade with Tehran. These punitive secondary sanctions could also impact banks that process transactions of these firms and even directors. It is therefore in the interest of its member states that the European Commission seeks to reduce the importance of the US dollar in international trade, especially in the area of energy. The European Commission is actually seeking to, sort of,...