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Euro’s Safe-Haven Status Grows, But Long-Term Stability Needs Structural Reform: S&P Analyst
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%.
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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Biden Blasts Trump Over Social Security Cuts in First Major Post-Presidency Speech
In his first major public address since leaving office, former U.S. President Joe Biden launched a scathing critique of his successor, accusing President Donald Trump of dismantling the nation’s welfare system and putting millions of Americans at risk.
Speaking at a disability rights event in Chicago on Tuesday, Biden, 82, took aim at recent developments within the Social Security Administration (SSA), which provides vital benefits to over 70 million Americans. He warned that job cuts and funding reductions under Trump’s leadership could severely disrupt the delivery of services to some of the country’s most vulnerable citizens.
“In fewer than 100 days, this new administration has done so much damage and so much destruction. It’s kind of breathtaking,” Biden told the audience. “Social Security deserves to be protected for the good of the nation as a whole.”
Biden accused Trump of taking “a hatchet” to the country’s welfare safety net in a bid to slash federal spending. Though Trump has repeatedly vowed not to cut Social Security benefits, the Department of Government Efficiency (DOGE), an unofficial agency aligned with the administration, plans to eliminate 7,000 jobs from the SSA.
The plan is being overseen by DOGE head and Trump ally Elon Musk, who has controversially called Social Security “the biggest Ponzi scheme of all time.” The proposed staffing cuts have sparked widespread concern that benefit payments may be delayed or disrupted due to reduced agency capacity.
Already, thousands of SSA employees have departed the agency, leading to reports of website crashes and unresponsive customer service lines. Biden said such dysfunction could lead to “a calamity for millions of families” who rely on timely benefits.
Criticizing the speed and aggression of Trump’s budget cuts, Biden remarked that the administration is “shooting first and aiming later.” He emphasized the long-standing bipartisan consensus that Social Security should remain untouched, calling its preservation a moral obligation.
In response to Biden’s remarks, the Trump administration accused the former president of spreading misinformation. “He’s lying to Americans,” a White House spokesperson said.
Jason Turkish, a prominent disability lawyer based in Michigan who represents 32,000 clients, echoed Biden’s concerns. “There’s always been a belief that Social Security is just something we do not touch,” he said. “But now, people are genuinely worried.”
Since leaving office earlier this year, Biden has largely remained out of the political spotlight, aside from occasional public appearances. He was recently seen attending the opening night of Othello on Broadway and frequently commutes between his Delaware home and his Washington, D.C., office.
Tuesday’s address marks a return to the national stage for Biden and signals his growing concern over the direction of domestic policy under the Trump administration.
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Ukrainians in Occupied Territories Resist Despite Repression and Risk
As Russia continues to occupy nearly one-fifth of Ukraine’s territory, millions of Ukrainians remain trapped behind enemy lines, enduring repression, intimidation, and daily fear—but many refuse to leave, clinging to hope that liberation will come.
Among them is a woman from southeastern Ukraine, a member of Zla Mavka, an all-female non-violent resistance group. Speaking to CNN under strict anonymity due to the danger, she described life under occupation as “exhausting and incredibly scary.”
“You can be arrested for anything,” she said. “You can’t speak freely, trust anyone, or even keep certain items in your home. Every day is a risk.”
Zla Mavka, named after a mystical forest spirit in Ukrainian folklore, focuses on preserving Ukrainian identity by secretly distributing literature, celebrating national holidays, and fostering cultural pride. “We want to remind everyone—this is not Russia and never was,” she said.
The risks are severe. Ukrainian citizens in occupied regions are being pressured to take Russian passports, with refusal often leading to arrest, torture, or deportation. Human rights groups have denounced these tactics as violations of international law. Without Russian documentation, residents cannot work, access medical care, or call emergency services. “You can’t even call an ambulance,” the resistance member said.
Stepan, a 22-year-old Ukrainian who recently escaped to government-controlled Kherson, shared a harrowing account of his detention by Russian troops. He and his family were imprisoned without charges—he was tortured with electric shocks, and his parents were held for months. “I was afraid to leave the house,” he said.
Russian President Vladimir Putin recently signed a decree requiring Ukrainians in occupied territories to adopt Russian citizenship by September or face expulsion. Ukrainian officials have urged residents to prioritize safety, even if that means accepting documents under duress.
While some residents support the occupation, both Stepan and the resistance member believe these individuals are a small minority—often those who benefit materially from aligning with the Russian regime. “They didn’t have much before. Now, shouting ‘I love Russia’ gets them a job and money,” the woman said.
Leaving the occupied zones is no easy task. Escape routes pass through Russian-controlled filtration points, where people are screened and interrogated. Many have been detained and sent to distant Russian facilities. Others must navigate a circuitous and expensive route through Russia and Europe to reach safety in Ukraine.
“It’s not just about territories,” the woman emphasized. “It’s about people. We are still here. We are waiting. And even if negotiations give our cities to Russia, resistance won’t stop.”
As international debates over peace negotiations and potential territorial concessions continue, those living under occupation remain defiant, unwilling to abandon their homes and their national identity—even in the face of overwhelming adversity.
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NATO Chief Warns of Russia’s Potential Nuclear Threat to Satellites
NATO Secretary General Mark Rutte has issued a stark warning about Russia’s possible intentions to deploy nuclear weapons in space, a move that would violate international space law and pose a serious threat to global security infrastructure.
Speaking to the German newspaper Welt am Sonntag, Rutte expressed concern that Moscow may be considering the deployment of nuclear weapons in orbit with the aim of targeting satellites, rather than Earth-based assets. Such an act would breach the 1967 Outer Space Treaty, which prohibits the stationing of weapons of mass destruction in space.
“This is very worrying,” Rutte said, emphasizing that Russia’s space capabilities have fallen behind those of the West. “Therefore, the development of nuclear weapons in space is a way for Russia to improve its capabilities.”
While the alleged weapons would not be directed at terrestrial targets, the impact of disabling satellites could be catastrophic. Many of the modern world’s essential systems — including navigation, telecommunications, and environmental monitoring — depend heavily on satellite technology. A single attack could disrupt daily life, military operations, and international communications.
Rutte stressed that NATO is taking the threat seriously, highlighting that member states are already enhancing their resilience against potential space-based threats. “NATO allies are exchanging intelligence and working together to develop better-protected satellites,” he said.
Space, once viewed as a frontier of peaceful exploration and innovation, has become increasingly contested in recent years. Rutte described the current space environment as “crowded, dangerous, and unpredictable,” and warned that competition is intensifying beyond commercial ventures into strategic and military domains.
The 1967 Outer Space Treaty, signed by the United States, the former Soviet Union, and dozens of other countries, remains a foundational agreement in international space law. It explicitly forbids placing weapons of mass destruction in orbit or on celestial bodies. Any move by Russia to deploy such weapons would be a direct violation of this treaty, potentially escalating tensions between global powers and triggering a new phase of the arms race in space.
NATO’s concerns reflect growing anxiety among Western defense and intelligence communities about the militarization of space. The alliance is increasingly viewing space as a domain of warfare, similar to land, sea, air, and cyberspace. In recent years, NATO has recognized space as an operational domain, and efforts are underway to bolster its strategic posture in orbit.
As geopolitical tensions deepen and technological competition intensifies, Rutte’s warning serves as a reminder that space is no longer immune to conflict — and that safeguarding it is becoming an urgent priority for global security.
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