BRUSSELS, Dec 5 (Reuters) - The European Commission published on Wednesday non-binding proposals to boost the role of the euro in international payments and as a reserve currency to challenge the dominance of the dollar.
The move follows the United States’ decision to withdraw from the Iran nuclear deal which has forced many European companies to stop trading with Iran to avoid U.S. sanctions.
The EU executive Commission called on companies and states to increase their use of the euro in energy contracts and said it would study possible measures to promote the European currency in financial and commodity markets.
“The decision to use a currency is ultimately made by market participants,” the Commission acknowledged stressing the most effective way to widening the international role of the euro was to overhaul the 19-country currency union and adopt banking and financial reforms which have been blocked for years by conflicting national interests. (Reporting by Francesco Guarascio; editing by Jan Strupczewski)