The Buck Stops Here: Europe Seeks Alternative to U.S.-Dominated Financial System
Germany and France complain that the U.S. is abusing sanctions power to bully even its allies.
The dollar’s dominant role in the global financial system, and thus U.S. sanctions power, is driving the search for alternatives. (Matt Cardy/Getty Images)
German Foreign Minister Heiko Maas late last month called for Europe to achieve financial independence from Washington as a prelude to restoring its freedom of maneuver in foreign policy, and other German officials are reportedly mulling ways to minimize U.S. dominance of the global financial system, which enables it to impose sanctions on banks and individuals almost anywhere in the world
French Finance Minister Bruno Le Maire echoed those sentiments in a speech of his own last month, calling for the creation of “totally independent financing instruments” outside U.S. control. “I want Europe to be a sovereign continent, not a vassal,” he said.
France and Germany have proposed ideas including a greater role for the euro, an alternative global bank-payment system outside the reach of U.S. influence, or some sort of European fund that could allow continued trade with sanctioned countries regardless of opposition from Washington.
In recent years, countries such as Russia, Venezuela, and China have all bucked at U.S. financial dominance and the sanctions power that goes with it. Russia has toyed with cryptocurrencies and its own payments system; China is taking some steps to reinvigorate the use of the renminbi as an international currency. Venezuela wants to create an oil-backed pseudo-cryptocurrency outside Washington’s reach to escape the long arm of sanctions. North Korea has also sought to use cryptocurrency to sidestep debilitating U.S. sanctions.
https://foreignpolicy.com/2018/09/05...nce-sanctions/
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