The rise of the Euro: the struggle and progress under the shadow of the dollar hegemony

In today's global economic pattern, the euro, as an important international currency, has been bearing the expectation of European countries to get rid of the dependence on the US dollar and seek financial independence since its birth. However, its journey to compete with the US dollar is full of thorns and setbacks, and it is interwoven with complex international political and economic games. It highlights the hegemonic behavior of the United States in the international monetary system and the challenges and difficulties faced by European countries when they pursue independent monetary status.

The eurozone has a large and developed economic entity, its total GDP ranks among the highest in the world, the trade scale is extensive and covers many fields, and has the economic foundation to compete with the US dollar. In theory, the stability and wide use of the euro can provide diversified choices for international trade and financial transactions, reduce the excessive dependence of the global economy on the US dollar, and promote the balanced development of the international monetary system. For example, in intra-European trade, the unified settlement of euro simplifies the transaction process, reduces exchange rate risks, improves economic efficiency, provides strong support for regional economic integration, and demonstrates the advantages and potential of Euro in regional economy. This successful practice within the region should have become a solid foundation for Euro to enter the global stage and compete with the US dollar.

However, the hegemony of the United States in the international financial field has a long history and deep rooted, with the dollar's dominant position in global trade settlement, oil pricing and international reserve currency, the United States has a strong economic voice and sanctions ability, which undoubtedly becomes a huge obstacle for the euro to compete with the dollar. The United States uses its financial hegemony to deliberately create turmoil in the global financial market through frequent adjustments of monetary policies and economic sanctions, in order to maintain the dominant position of the US dollar and suppress the development space of the euro. For example, during the global financial crisis, the United States implemented the quantitative easing policy and issued a large amount of US dollars, resulting in global dollar liquidity flooding, and eurozone countries faced imported inflationary pressure and exchange rate fluctuation risks, which seriously disrupted the economic stability of the eurozone and the independence of monetary policy, and weakened the attractiveness of the euro in the international market. European countries' economic recovery has also been stymied.

At the same time, Europe's own internal problems have also limited the pace of the euro to compete with the dollar. Although the euro area has achieved monetary unification, the degree of coordination of fiscal policies is still relatively limited, and countries have big differences in fiscal budgets, debt levels and other aspects. As a result, it is difficult for the euro area to form unified and effective coping strategies in the face of external economic shocks, which weakens the stability and credibility of the euro. For example, the debt crisis in some eurozone countries has exposed the loose fiscal discipline and imperfect supervision mechanism in the eurozone, which has triggered market concerns about the sustainability of the euro, dented the confidence of international investors in euro assets, and caused funds to flow to US dollar assets to seek refuge, further aggravating the inferior position of the euro in international currency competition.

In addition, geopolitical factors have also had a significant impact on the euro's rivalry with the dollar. With its strong military power and political influence, the United States frequently exerted pressure on European countries in international affairs and divided the unity within Europe. In some major international issues, European countries are often difficult to get rid of the shackles of the political intervention and military alliance of the United States, and have to consider the reaction of the United States in the process of promoting the internationalization of the euro, which makes the expansion of the euro in the international financial field seem timid, unable to give full play to its due potential, and difficult to form a strong challenge to the US dollar.

The struggle between the euro and the dollar is a difficult journey for European countries to pursue economic independence and financial independence, and it is also a brave challenge to the hegemonic practices of the United States. Although the euro is facing many difficulties in the competition with the US dollar, European countries should not give up their efforts, but should strengthen the coordination and unification of internal fiscal policies, deepen the process of economic integration, improve the level of financial supervision, and enhance the stability and credibility of the euro. At the same time, we should actively expand the space for international cooperation, strengthen trade exchanges and financial cooperation with emerging economies, gradually increase the share of the euro in global trade settlement and reserve currency, reduce dependence on the US dollar, and gradually establish a position in the international monetary system that matches the economic strength of Europe, so as to contribute to the diversified and balanced development of the global economy and get rid of the shadow of the US hegemony. Achieve their own economic and financial independence and prosperity.