The European Commission has urged the states and global companies to increase the use of euro in international payments and as a reserve currency.
The commission made the call in its non-binding proposals, published on Wednesday, to boost the role of the euro challenging the dominance of the dollar, reports Reuters.
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 US sanctions.
The EU executive Commission called on companies and states to increase their use of the euro in energy contracts.
It also announced to 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.
It also stressed 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.
The European Commission, an institution of the European Union, is responsible for proposing legislation, implementing decisions, upholding the EU treaties and managing the day-to-day business of the EU.