Tensions with US fuels push to empower euro as allies reject 'Trump-shaped world order'
Tuesday, February 17, 2026
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The 2026 World Economic Forum and Munich Security Conference saw European leaders, including German Chancellor Friedrich Merz, express concerns over a "divide" between Europe and the US, prompting a push to promote the euro as a global currency, according to Axios reporters Courtenay Brown and Neil Irwin.
The European Central Bank, led by President Christine Lagarde, is launching a facility to allow global central banks to borrow euros, aiming to "reinforce the role of the euro" and potentially chip away at the US dollar's dominance, with the euro reaching its highest level against the dollar in about three years.
The move is driven by concerns over US trade policies, including tariffs imposed by President Trump, and worries about the erosion of US Federal Reserve independence, which have spooked global investors and led to a 9 percent decline in the dollar over the past year, as reported by Brown and Irwin.
