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European Council president Antonio Cost and US president Donald Trump. Europe's financial system is so deeply intertwined with the dollar system that any shock would be transmitted back to Europe (Photo: EU Council)

Analysis

Debt: Europe’s biggest financial advantage over US is also its weakness

Dollar markets had their worst day in months on Tuesday (20 January) as president Donald Trump threatened tariffs on several European countries and doubled down on his demand to “take over” Greenland, ahead of a series of top-level meetings in Davos this week.

The EU has said it is ready to retaliate with tariffs on €93bn of US goods, but commission president ...

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European Council president Antonio Cost and US president Donald Trump. Europe's financial system is so deeply intertwined with the dollar system that any shock would be transmitted back to Europe (Photo: EU Council)

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Author Bio

Wester is a journalist from the Netherlands with a focus on the green economy. He joined EUobserver in September 2021. Previously he was editor-in-chief of Vice, Motherboard, a science-based website, and climate economy journalist for The Correspondent.

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