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Euro’s Safe-Haven Status Grows, But Long-Term Stability Needs Structural Reform: S&P Analyst

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The euro’s growing appeal as a global safe-haven currency signals a promising shift for Europe’s economic role on the world stage. However, according to Sylvain Broyer, Chief EMEA Economist at S&P Global Ratings, the momentum is far from guaranteed without substantial economic reforms and a stronger focus on domestic demand.

In a commentary published exclusively for Euroviews, Broyer emphasized that while recent market behavior reflects increased confidence in the euro during times of financial uncertainty, sustaining that trust requires more than fiscal stimulus packages. “Being viewed as a safe haven is not always a positive—it brings responsibility,” he noted, urging Europe to reconfigure its growth model to become more self-reliant.

Currently, the euro comprises only 20% of global foreign exchange reserves, compared to 58% for the US dollar. Though the euro is strengthening and trading closer to its fair value of around $1.15, Broyer warns that maintaining or improving this position hinges on significant policy shifts, particularly a move toward boosting domestic consumption over export reliance.

Europe’s deep-rooted dependency on global trade, especially with a trade model shaped by decades of adherence to the Washington Consensus, leaves it vulnerable. Should the US further restrict imports, Europe could face intense competition from Chinese products redirected toward European markets. China’s edge in production efficiency, regulatory flexibility, and technological development could pose a serious challenge.

To safeguard against this, Broyer advocates for expanding Europe’s domestic economy while preserving its commitment to free trade. He points to Germany’s stimulus efforts and rising EU-wide defence spending as initial steps in the right direction. Together, these initiatives could lift the eurozone’s GDP by up to half a percentage point annually by 2028—an impactful change for a region where growth typically hovers around 1.2%.

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Still, the economist warns that Europe’s limited fiscal capacity, constrained by budgetary rules and a relatively small EU budget, will require more than short-term spending to achieve long-term resilience. “Reforms must begin with dismantling internal trade barriers,” Broyer said, citing IMF research indicating that aligning Europe’s internal trade efficiency with US interstate levels could boost per capita GDP by 7%.

Further gains could come from fully realizing the EU’s proposed Savings and Investment Union (SIU). OECD data suggests that even modest increases in market capitalisation could raise per capita GDP by 2.5%, improving investment in innovation and reinforcing the continent’s competitive edge.

Ultimately, Broyer concluded, the euro’s emergence as a reliable safe haven depends not only on short-term fiscal tools but also on deep, structural reforms. These would enhance the EU’s ability to withstand global shocks and reduce dependence on the US dollar—offering a path to a more autonomous and robust economic future.

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When Smartphone Use Becomes a Problem: The Rise of Digital Disorders

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Smartphones and social media have become part of everyday life, but experts are increasingly examining what happens when digital habits become difficult to control. Behaviours such as doomscrolling, FOMO, nomophobia and problematic social media use are attracting growing attention as they begin to interfere with sleep, work, education, relationships and physical activity.

Not every person who spends hours online has an addiction. The key issue is whether someone can control their behaviour and whether excessive use causes significant problems in daily life.

Gaming disorder is currently the clearest example of a recognised digital condition. The World Health Organization includes it in the ICD-11 classification. It involves losing control over gaming, giving it greater priority than other activities and continuing to play despite harmful consequences. Symptoms generally need to persist for at least 12 months and cause substantial disruption to personal, social, educational or professional life.

Social media addiction is less clearly defined. It is not currently recognised as a separate ICD-11 diagnosis, but researchers often describe problematic social media use. Warning signs include repeatedly checking platforms, spending longer online than intended, becoming distressed when access is unavailable and neglecting other responsibilities.

A major WHO survey involving almost 280,000 adolescents aged 11, 13 and 15 across 44 countries and regions found that 11% showed signs of problematic social media use, up from 7% in 2018. The figure was 13% among girls and 9% among boys.

FOMO, or the fear of missing out, can also encourage repeated checking of messages, social networks and news. Researchers have linked FOMO with problematic online behaviour and difficulties managing emotions.

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Doomscrolling describes repeatedly consuming negative news about wars, disasters, accidents and other crises. Although people may seek information to feel prepared, constant exposure to distressing material can increase anxiety and create a cycle of worry and further checking.

Nomophobia refers to anxiety associated with being without a mobile phone or losing access to digital connections. It is not an official medical diagnosis, but researchers are studying its relationship with FOMO, social media use and anxiety.

Other technology-related experiences include phantom vibration syndrome, where people believe their phone has vibrated when it has not, and sleep problems caused by late-night screen use.

The physical effects can also matter. Long periods on smartphones may contribute to inactivity, eye strain and neck or muscle discomfort.

Experts say the most important question is not simply how many hours someone spends on a phone. It is whether they can put it down and whether continued use is damaging other parts of their life.

When digital activity begins taking priority over sleep, work, study, relationships or physical activity, it may be time to reconsider how technology is being used.

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New Flood Warnings Issued in Nepal as Death Toll Reaches 750

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Flood warnings were sent to residents across Nepal on Sunday as rescue teams worked to evacuate people from communities along a major route connecting Kathmandu with some of the areas worst hit by devastating floods earlier in the week.

Authorities urged people in affected districts to remain alert after the water level of the Bhotekoshi River increased, raising fears of further flooding. The latest warnings followed information from Chinese authorities about increased water flow upstream.

The combined death toll in Nepal and Tibet reached 750 on Sunday, while more than 3,000 people were still reported missing.

Nepal’s disaster agency said 734 people had died and 2,498 remained missing. Chinese authorities reported 16 deaths and 546 missing people in Tibet, including more than 100 Nepalis and citizens of more than a dozen other countries.

The latest alerts have added to the anxiety of residents who have already been forced to flee their homes several times since Wednesday’s floods.

“Sometimes they say a flood is coming, then we have to run again to higher ground, even at night,” local resident Govind Shreshta said. He described the situation as exhausting, particularly because he has elderly parents who need assistance moving to safety.

The destruction across the region remains severe. Thick grey-brown mud covers entire communities along the river, with damaged homes, vehicles and agricultural machinery partly buried beneath the debris. Landslides have also destroyed sections of rice terraces and pushed large amounts of earth into the river.

Several concrete and suspension bridges were swept away, leaving communities on opposite sides of the river increasingly isolated.

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“Those that are there are now stuck there. Those who are here are stuck here. It’s going to be very difficult,” said Sattan Singh Tamang, who was working near a bridge when the floods struck.

Electricity supplies remained disrupted in many areas on Sunday. Twisted poles and cables could be seen lying across the mud, while homes and businesses that survived the flooding struggled to resume normal activities.

The Prithivi Highway, a vital route carrying food, fuel and other supplies into Kathmandu, remained largely operational, although sections still required repairs.

Rescue teams continued working despite the risk of additional flooding. Authorities have urged residents to follow emergency warnings and move to higher ground when instructed.

The disaster has caused widespread damage to infrastructure and communities, while rescue workers continue searching for missing people and delivering essential supplies to those cut off by destroyed roads and bridges.

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Nepal Flood Death Toll Reaches 633 as Nearly 3,000 Remain Missing

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Rescuers in Nepal and China’s Tibet region are searching through mud and debris as the number of people missing after a devastating glacial flood approached 3,000, while authorities warned of further flooding in areas where emergency teams are working.

Emergency crews have recovered 633 bodies so far, with some victims reportedly carried downstream as far as India. The disaster is the deadliest to hit Nepal since the 2015 earthquake, according to the US Geological Survey, which said a glacial collapse triggered the enormous flow of ice, water, mud and debris.

Nepal’s disaster authority has added 933 hydropower workers to its missing persons list, alongside trekkers and pilgrims travelling toward Tibet’s sacred Mount Kailash.

The scale of the disaster has left families searching desperately for relatives. Hospitals in Kathmandu have been crowded with people looking for missing loved ones, while photographs and names have been displayed on posters around the facilities.

The search has also been complicated by the risk of additional flooding. Huge lakes formed after debris blocked waterways, and one such body of water became a direct threat to rescuers.

Nepali police warned emergency workers to move immediately to safer locations after receiving reports that another water barrier had burst on the Tibetan side.

China temporarily halted rescue operations in the worst-hit Gyirong area on Friday because of renewed flooding concerns. Chinese state broadcaster CCTV later reported that the threat had eased after the water level of a debris-formed lake fell, allowing rescue operations to resume.

Chinese President Xi Jinping chaired a meeting on the disaster and offered China’s assistance to Nepal’s emergency response.

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In Nepal, military teams have been working to rescue people trapped inside the Trishuli 3A hydropower project. Army spokesman Raja Ram Basnet said helicopters had been sent to the area, but locating the tunnel entrances was difficult because of extensive destruction.

Around 350 workers and residents had been brought to safety from the site, while efforts continued to reach more than 100 people still trapped.

Survivors described the flood as striking with extraordinary speed. Buddha Tamang, a worker at one of the dams along the Trishuli valley, said he survived because he was inside a tunnel when the water arrived. He said senior workers on the other side of the facility were swept away.

Aid has begun reaching some survivors, with makeshift army relief centres providing shelter and assistance. Children separated from their families are also being housed while authorities work to reunite them with relatives.

UNICEF said at least 17,000 children urgently need humanitarian assistance. Eighteen schools have been destroyed and another 20 damaged.

The International Red Cross estimates that at least 93,000 people have been affected and require significant assistance.

The European Union has pledged €2 million in emergency aid for Nepal. European Commission President Ursula von der Leyen said the funding would help provide life-saving assistance to families and communities most severely affected.

With thousands still missing and unstable water bodies threatening rescue areas, authorities face a race against time to find survivors while preventing further loss of life.

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