The most important drawback holding the euro back as a global currency is the scarcity of safe assets: the US supplies about 30% of world GDP in safe assets, while Germany alone is far below that, the core safe euro-zone countries together reach maybe 5% of global GDP, and including France brings it to about 10% — leaving a huge gap.

factualpending

Speaker

Moritz Schularick

Evidence Quote

the lack and scarcity of safe assets... there's a huge gap in terms of the safe asset supply between uh the dollar uh the dollar space and the euro space.

Source

The changing dollar regime: An updatePeterson Institute for International Economics
Created: 6/18/2026, 1:57:48 PM

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