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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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Two Dead, Nearly 200 Injured as PSG Title Celebrations Turn Violent Across France

What began as jubilant celebrations of Paris Saint-Germain’s historic UEFA Champions League victory ended in violence and tragedy in parts of France, with two people killed and nearly 200 injured during street festivities that spiraled out of control.
Authorities confirmed on Sunday that a 17-year-old boy was fatally stabbed in the southwestern town of Dax during a PSG street gathering, while in Paris, a man died after his scooter was struck by a car amid the crowded celebrations. Both incidents are currently under investigation.
The unrest followed PSG’s dramatic win in Munich, where the club secured its first-ever Champions League title, marking a milestone in French football history. While fans across the country took to the streets to celebrate, several areas descended into violence.
According to the French Interior Ministry, a total of 294 people were arrested nationwide as of 2 a.m. Sunday. Of the nearly 200 injured, 21 were police officers—18 of them in Paris alone. One officer remains in a medically induced coma after being struck in the face by a firework.
Interior Minister Bruno Retailleau condemned the violence in a statement on social media. “True PSG fans are celebrating a magnificent achievement. Meanwhile, barbarians have taken to the streets to commit crimes and provoke law enforcement,” he said. “It is unacceptable that people cannot celebrate without being endangered by a violent minority.”
Despite the unrest, the majority of gatherings were peaceful, authorities noted, with large crowds celebrating the historic win in cities including Marseille, Lyon, and Lille.
The PSG squad returned to Paris from Munich on Sunday afternoon aboard a Qatar Airways charter flight, arriving at 4 p.m. The team is expected to continue celebrations in the capital with tens of thousands of fans, under heightened security measures.
The violent turn of events has reignited debate in France over crowd control during major sporting celebrations, and how best to ensure public safety without dampening national enthusiasm.
PSG’s Champions League triumph marks a defining moment for the club, which has long pursued European glory. As the team prepares for a hero’s welcome, officials are urging fans to celebrate responsibly and respect public safety.
News
Ukraine Launches Major Drone Assault on Russian Airfields, Hits Over 40 Strategic Bombers

Ukraine’s Security Service (SBU) has claimed responsibility for a large-scale drone strike on four Russian air bases over the weekend, targeting dozens of strategic bombers across vast swaths of Russian territory — from Siberia to the Arctic.
According to Ukrainian officials, the operation, codenamed “Spiderweb” (Pavutyna), was launched on June 1 and struck 41 long-range bombers stationed at airfields in Russia’s Ryazan, Ivanovo, Irkutsk, and Murmansk regions. The attack is being hailed by Kyiv as one of its most ambitious and far-reaching strikes since the beginning of Russia’s full-scale invasion.
“Enemy strategic bombers are burning en masse in Russia,” a senior SBU official said, noting that the operation was specifically designed to cripple Moscow’s airstrike capabilities. “This is a large-scale special operation aimed at destroying enemy bomber aircraft.”
The four airfields targeted were Dyagilevo in the Ryazan region, Ivanovo in central Russia, Belaya air base in Irkutsk — over 4,000 kilometers from the front lines — and Olenya air base on the Kola Peninsula near the Arctic, roughly 2,000 kilometers from Ukraine’s border.
Ukrainian officials described the complex logistics of the operation, which involved covertly transporting drones deep into Russian territory, hiding them until the time of launch, and remotely executing the strikes. While specific details remain classified, Ukraine previously revealed it had developed drones with a flight range of up to 3,000 kilometers, enabling long-range operations like this.
Satellite imagery analyzed after the attack shows the presence of several high-value Russian aircraft types at the affected bases, including the Tu-95, Tu-22M3, Tu-160, and A-50 radar planes. These aircraft have been central to Russia’s long-range missile campaign against Ukraine.
The Tu-22M3, for example, is capable of carrying Kh-22 and Kh-32 cruise missiles at speeds exceeding Mach 4. The Tu-95, a Cold War-era bomber once designed to carry nuclear weapons, has been retrofitted to launch conventional cruise missiles. The A-50 aircraft provides airborne radar surveillance and target coordination for Russian forces.
The scale of the strike underscores Ukraine’s growing long-range capabilities and signals a shift in Kyiv’s strategy to disrupt Russian air operations at their source. President Volodymyr Zelenskyy said he had held meetings with the Ministries of Defense and Foreign Affairs, along with the General Staff and SBU, to coordinate further defense and counter-offensive planning.
There has been no immediate official response from Moscow regarding the extent of damage caused.
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