The recent authorization of long-range strikes into Russian territory by the Biden administration, coupled with Trump’s electoral victory, has created unprecedented tension in European capitals. The deployment of 11,000 North Korean troops to Kursk and the EU’s massive €372 billion military fund reallocation mark significant shifts in global power dynamics.
Russia’s economic resilience, despite Western sanctions, has surprised many analysts. The country’s successful pivot to Asian markets, particularly China, along with the development of alternative payment systems, poses a serious challenge to Euro stability. The frozen €300 billion in Russian central bank reserves and banking restrictions have failed to deliver the expected economic collapse.
European unity faces severe tests as nations struggle with energy security, military modernization, and diplomatic realignment. The combination of increased military spending, energy market disruption, and shifting global alliances suggests potential long-term challenges for the Euro’s position as a major reserve currency.
