The instability of US trade policy and Donald Trump’s protectionism in 2025 did not help the euro gain ground against the dollar on the global stage. According to a report from the European Central Bank, by the end of the year, the euro’s share in the international monetary system stood at around 20%, which is only slightly higher than previous levels and 4 percentage points below the historical peak observed in the mid-2000s. In global reserves, the euro’s share dropped to 20.2%. Due to geopolitical tensions, central banks and private investors preferred to buy gold. Given the sharp increase in the price of the precious metal, its share in global reserves for the first time has exceeded that of both the euro and US Treasury bonds.
ECB President Christine Lagarde noted that the changing landscape underscores the importance of enhancing the euro’s international role, but European policymakers need to move from words to action. She called for accelerated progress toward a unified capital market to unlock Europe’s potential. An important step in this direction was an agreement reached in early June 2026 by six of the largest EU economies to establish centralized oversight of the financial market.
At the same time, the euro has improved its performance in the debt market. The total volume of loans and bonds issued in euros reached a historic high of over $1.1 trillion, accounting for approximately 30% of the global total. Corporations have been actively borrowing in euros due to low spreads and an investment boom in the artificial intelligence sector. For instance, Alphabet secured approximately $13 billion in euros through two transactions for the first time. Additionally, the volume of euro-denominated green bonds, aimed at sustainable development, has surpassed dollar figures for the first time.
