Core Viewpoint - European Central Bank President Christine Lagarde stated that the euro could become a viable alternative to the US dollar if governments strengthen the financial and security architecture of the G20, which would bring significant benefits to the group [1][2] Group 1: Euro's Potential as an Alternative Currency - Lagarde emphasized that the euro's influence will not be automatic; it must be earned through deeper and more liquid capital markets, a stronger legal foundation, and a commitment to open trade [1] - The dollar's share of international reserves has been declining, currently at 58%, the lowest in decades, while the euro stands at 20% [1] Group 2: Necessary Conditions for Euro's Growth - To enhance the euro's role, Europe must also bolster its military strength to provide geopolitical assurances to investors, particularly official investors [2] - The euro should become the preferred currency for international trade invoicing, achievable through new trade agreements, improved cross-border payments, and liquidity agreements with the European Central Bank [2] - Reforming the domestic economy is urgent, as the eurozone's capital markets remain fragmented and inefficient, lacking truly liquid and widely available safe assets [2]