TEHRAN, January 17 (MNA) – According to reports, the European Union is pushing ahead with a detailed plan, seeking to shield the bloc from potential currency shocks by lessening the US dollar’s dominance.The EU launched a long-term plan back in 2018 for the wider use of the euro in the global economy to "better protect citizens and companies against external shocks", rendering the international finance and monetary system more resilient, according to Bloomberg.

The strategy, laid out in a draft proposal, hinges on boosting the international role of the euro, while chipping away at reliance on the US dollar.

The move is seen as potentially beneficial for cushioning the impact of a fallout from financial risks, including lessening the European bloc’s vulnerability to US sanctions, Sputnik reported.

“The extra-territorial application of unilateral sanctions by third countries has seriously affected the EU’s and its member states’ ability to advance foreign policy objectives, to honour international agreements and to manage bilateral relations with sanctioned countries,” the document says.

The plan, charged with fostering “openness, strength and resilience,” was earlier reported by the Financial Times, and incorporates measures to allow for the greater scrutiny of foreign takeovers.

“At times, unilateral actions by third countries have compromised legitimate trade and investment of EU businesses with other countries.” The proposals also underscored that plummeting valuations of European stocks heightened the risk of some strategic firms being taken over against the backdrop of a continuing coronavirus pandemic, which has wreaked havoc on global markets and stunted economic growth.

The document, set to be adopted by the European Commission on 19 January ahead of the inauguration of US President-elect Joe Biden, is not final, and likely to be further augmented.

MAH/Sputnik