EU initiates proposal to dump the dollar and to create a PetroEuro system

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by Kenneth Schortgen, Shotgun Economics:

When the U.S. and President Trump decided to renege on the JCPOA Iran nuclear agreement, it set in motion the will within Europe to reject this action and to seek alternatives to dollar hegemony.  And besides a plan to create their own continental SWIFT alternative, the European Commission on Dec. 3 initiated plans to not only drop the dollar as a trade settlement currency, but also to create their own ‘PetroEuro’ for use in energy deals.

Amid increasing tensions between Trump and various European leaders (cough Macron cough) and the ongoing threats of sanctions and tariffs, the European Commission plans to outline initiatives to develop the international role of the euroaccording to a draft document obtained by Bloomberg.

As Viktoria Dendrinou reports, the plan has three dimensions including the European financial sector, the international financial sector and key strategic sectors such as energy…

Member states should promote wider use of the euro in relations with third countries in field of energy, including in contracts within the framework of bilateral and multilateral international agreements,” intergovernmental agreements with third countries a model clause, developed by the Commission, related to the use of the euro as default currency

“Participants in European energy markets should use more energy-related contracts denominated in euro

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