Macron Eyes Euro’s Role as Trump Shakes Up the Dollar

Donald Trump has drawn European leaders’ attention to currency markets.

The euro’s role as a reserve currency will strengthen as Trump disrupts the U.S. dollar’s dominance.

Following a surge in the euro against the dollar, French President Emmanuel Macron privately questioned European Central Bank chief Christine Lagarde last week in Brussels about the currency’s outlook, William Horobin and Alberto Nardelli reported for Bloomberg News.

Lagarde has been working to convince European Union leaders that Trump’s return to office presents economic opportunities for the bloc.

Amid financial market turbulence caused by Trump’s dismantling of longstanding U.S. economic policies, some European policymakers see a chance for the euro to solidify its status as a major global currency.

Germany recently abandoned decades of fiscal conservatism to revive its economy and rebuild its military, prompting a broad repricing of European assets.

Now, EU leaders are reconsidering other long-standing financial taboos, James Regan, Naomi Tajitsu, Alice Gledhill, and Alexander Weber also reported for Bloomberg News. Macron, a former investment banker, has seized the moment to promote his vision of Europe as an independent geopolitical force.

The future of the euro is becoming a key part of that strategy.

“We shouldn’t hide from it—the euro has been a great success for 25 years,” Bundesbank President Joachim Nagel said during a visit to Paris earlier this month. “If we position ourselves as more competitive, the euro’s role as a reserve currency will strengthen.”

The door is opening as Trump disrupts the U.S. dollar’s dominance. His aggressive tariffs, confrontations with allies and adversaries, and wavering commitments to NATO have shaken global financial confidence.

Advisors have even floated the idea of a so-called "Mar-a-Lago Accord" that could reshape global monetary dynamics.

Despite these shifts, the dollar remains the world’s dominant currency, comprising nearly 60% of global foreign reserves, while the euro accounts for only 20%. That ratio has remained relatively stable over time.