THE European Union (EU) was set to unveil its plan yesterday to strengthen the international role of the euro as it seeks to erode the dominance of the U.S. dollar and to insulate the bloc from financial risks, including U.S. sanctions.

The European Commission blueprint will outline how the region can fortify its economic and financial resilience by bolstering the single currency’s architecture and through growing markets like green finance, according to a draft of the plan seen by reporters.

Calls to boost the bloc’s autonomy have been growing for years and gained steam after the United States imposed sanctions against Iran that would also punish European banks, companies and people who do business with the country. The commission’s plan reflects increasing pressure by member states for the EU to adopt tools that will allow it to pursue its foreign-policy goals with less recourse to an unpredictable U.S. ally.

“The extra-territorial application of unilateral sanctions by third countries has seriously affected the EU’s and its member states’ ability to advance foreign policy objectives, to honor international agreements and to manage bilateral relations with sanctioned countries,” the draft document said.

The initiative to boost the role of the euro was first put on the EU’s agenda by former European Commission President Jean-Claude Juncker, who called for steps to shield the region’s economies and currency from volatility elsewhere in the world. (SD-Agencies)