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Although the U.S. dollar has been battered or
has fallen in value, its role as the world’s reserve
currency—the anchor of global commerce—has never been
challenged. Until now. The story begins after World War II, when
the European nations decided to ensure peace by knitting
themselves together.
In 1957, the European Economic Community was established in a
landmark treaty signed in Rome. Six countries—France, West
Germany, Italy, Belgium, the Netherlands, and Luxembourg—signed
the Treaty of Rome.
It formed the bedrock of the European
Community and was the true beginning of the European Union and
the euro.
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Several other treaties followed, each one
pulling Europe closer together. The Maastricty Treaty, signed in
the Dutch city on February 7, 1992, amended the Treaty of Rome
and established the European Union, led to the creation of the
euro, and established a more cohesive whole that included
initiatives on foreign policy and security. The treaty, which
called for bold steps to a closer union, was by no means a
certain thing. Only 51% of France voted in favor, and Denmark
rejected the first version. Today, however, the euro is
circulating in dozens of countries and is used by hundreds of
millions of people. If the U.S. dollar is ever unseated as the
world’s reserve currency, it will be the euro that does it. |
