Military power ‘precondition’ for euro’s global rise, Lagarde says
European Central Bank President Christine Lagarde stated that strengthening the euro’s global role will require Europe to bolster not only its trade capabilities but also its military power. Speaking in Berlin, she argued that trade alone is insufficient to elevate a currency’s international standing—geopolitical security and military alliances are also essential, as they build investor confidence and can significantly increase a currency’s share in global reserves. While the EU already excels in trade and is working to enhance euro usage through initiatives like the digital euro and improved payment systems, Lagarde emphasised that Europe must commit to economic openness, legal certainty, and credible security commitments to gain the “exorbitant privilege” currently enjoyed by the U.S. dollar.