The euro functions as a geoeconomic tool—using financial mechanisms like sanctions to exert power—but its effectiveness is constrained by the EU’s incomplete institutional architecture.
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The Euro: Power without Autonomy?
Sanctions, Dollar Dominance, and Structural Constraints in the Eurozone
Key Insights
- Main question: Why has the euro’s monetary power not translated into full EU strategic autonomy?
- Argument: While the euro functions as a growing geoeconomic tool (sanctions, trade, finance), its impact is constrained by EMU’s incomplete architecture, dollar dominance, and fragmented political and financial integration.
- Conclusion: Without deeper fiscal, financial, and political union, the euro cannot fully rival the dollar or deliver true strategic autonomy.
By Yann Sydow
29 April 2026 · 21:18 CET· Updated 21 June 2026 · 18:01 CETIssue II
Cite this brief
Sydow, Y. (2026). The Euro: Power without Autonomy?. EPIS Insight · International Economic Relations.
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