Influence of the euro

Investment Analysis Clubs Macro Economic Trends and Risks
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…to put their money - or rather, their currency - where their mouths were…Building on proposals last year by her predecessor Mario Draghi for sweeping reforms to Europe’s financial system, Lagarde coined a phrase to define the opportunity: the “global euro moment”…

Four months on - and a year since Draghi’s report - Lagarde’s calls to bolster the foundations of the single currency are being drowned out by national divisions and other priorities…

A sense of policy inertia is the main takeaway…Measures that would have strengthened the euro’s appeal for investors have fallen by the wayside…Proposals to jointly issue debt in euros to fund Europe’s defence encountered resistance from Berlin and Paris. Smaller nations with big financial sectors opposed centralizing supervisory powers in EU bodies. And plans to create a digital version of the euro have yet to take on a clear shape.

I have linked the Draghi report several times. It makes the case that growth and competitiveness are fading in Europe.

For example, he writes “there is no EU company with a market capitalisation over EUR 100 billion that has been set up from scratch in the last fifty years, while all six US companies with a valuation above EUR 1 trillion have been created in this period.”

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EU capitals move to spike Commission’s new corporate, tobacco levies
https://www.euractiv.com/news/for-editing-exclusive-commissions-new-corporate-tobacco-levvies-under-heavy-fire-from-eu-countries/
The Commission’s proposal to fund the next EU budget with corporate and tobacco levies is hanging by a thread, after a Commission presentation triggered pushback from EU countries.

In July, Commission President Ursula von der Leyen touted the “most ambitious ever” EU budget for 2028 to 2034, with €2 trillion to shape the bloc’s competitiveness and defence ambitions without completely neglecting farmers and regions that usually consume two-thirds of EU cash.

But nine EU countries are already running deficits high enough to warrant EU sanctions, and both the sheer size of the budget and any new income sources need unanimous support from the EU-27.

DB2

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