Macron proposes European common bonds: a dual agenda of investing in strategic industries and challenging the dollar's hegemony.

On February 10, 2026, French President Emmanuel Macron gave a joint interview to seven European media outlets, including France's Le Monde, Germany's Süddeutsche Zeitung, and the UK's The Economist, at the Élysée Palace in Paris. He explicitly called on the 27 member states of the European Union to issue a new common debt instrument—Eurobonds—aimed at providing large-scale investment for strategic areas such as green transition, artificial intelligence, and quantum technology. Macron stated plainly that this move is not only about European competitiveness but also an opportunity to challenge the dominance of the US dollar. Two days later, EU leaders will hold an informal summit in Brussels, Belgium, to discuss European competitiveness issues, and Macron's remarks undoubtedly set the core framework for the summit's debate.

Europe's Awakening After the Greenland Crisis: Macron's Strategic Diagnosis

Macron views the recent disputes between Europe and the United States over Greenland as a wake-up call. He warns that Europe should not feel a cowardly sense of relief due to the temporary easing of tensions. Analysts point out that this diplomatic incident is not an isolated event but reflects a deeper pattern, as Macron described: the Trump administration in the United States is adopting an openly anti-European stance, attempting to weaken or even divide the European Union. Macron predicts that in the coming months, when the EU fully implements regulatory rules such as the Digital Services Act targeting large technology platforms, the United States is likely to impose retaliatory tariffs on European exports.

From a strategic perspective, Macron's statement reflects a growing anxiety within European leadership. Eurostat data shows that in 2025, the EU's total R&D investment in key future technologies such as artificial intelligence and quantum computing was approximately 58 billion euros, significantly lower than that of the United States and China. European companies struggle to achieve economies of scale under the dual pressures of foreign competition and internal market fragmentation. In the interview, Macron emphasized that our companies' domestic market should not be 27 different markets, but rather a unified market of 450 million people. The specific pathways he proposed include simplifying and deepening the single market, promoting a capital markets union, integrating Europe's power grid network, and establishing a unified European business code.

Eurobonds: The Conceptual Evolution from a Recovery Tool to a Strategic Weapon

European bonds are not an entirely new concept. In July 2020, to address the economic impact of the COVID-19 pandemic, EU leaders, after arduous negotiations, approved the Next Generation EU recovery fund with a total amount of up to 750 billion euros. Approximately two-thirds of this funding was raised through the issuance of common bonds by the European Commission on behalf of all member states in the capital market. This was seen as a historic breakthrough in the process of EU fiscal integration. What Macron is proposing now is essentially transforming this temporary crisis-response tool into a permanent strategic investment engine.

Macron refers to it as forward-looking European bonds. The core logic lies in leveraging the overall credit rating of the European Union—typically higher than that of individual member states—to raise substantial funds at a lower cost. These funds will be directed into the three strategic areas he has designated: green transition, artificial intelligence, and quantum technology. The deeper reason is that Macron sees a window of opportunity: global markets are growing increasingly concerned about the U.S. dollar and are seeking alternatives. We should offer them European debt. Data from the International Monetary Fund for the fourth quarter of 2025 shows that the dollar's share of global foreign exchange reserves has gradually declined from 73% in 2001 to about 58%. Although it still dominates, the trend toward diversification is indeed present.

However, this concept faces significant political resistance. Frugal countries represented by Germany, the Netherlands, and Austria have consistently opposed any form of debt mutualization, fearing it could weaken fiscal discipline and ultimately force their own taxpayers to foot the bill for other countries' expenditures. The new coalition government led by German Chancellor Friedrich Merz has adopted a cautious stance on this issue. Although Macron attempted to downplay Franco-German differences over projects like the Future Combat Air System in the interview, calling it a good project, the issue of Eurobonds is far more sensitive than defense cooperation.

Challenging the Dollar Hegemony: The Gap Between Geopolitical Ambitions and Financial Realities

Macron directly links European bonds to challenging the hegemony of the U.S. dollar, which is the most geopolitically ambitious part of his proposal. The hegemony of the U.S. dollar is built on several pillars: global commodities (especially oil) being priced and settled in dollars, the dominant role of the dollar in international trade and financial transactions, and the unparalleled depth and liquidity of the U.S. Treasury market. Any challenge will not be accomplished overnight.

In fact, the European Union has already taken action to enhance the international status of the euro. In 2018, the European Commission released a strategic document titled "Towards a Stronger International Role of the Euro." Following the Russia-Ukraine conflict, the EU's financial sanctions against Russia further stimulated discussions on reducing reliance on the US dollar. However, progress has been limited. According to data from the Society for Worldwide Interbank Financial Telecommunication, in 2025, the euro's share in global payments was approximately 22%, while the US dollar accounted for nearly 48%. In the bond market, the outstanding amount of international bonds denominated in euros is about 13 trillion euros, whereas those denominated in US dollars exceed 30 trillion US dollars.

Macron's logic is that large-scale, highly liquid Eurobonds backed by EU credit could form an attractive alternative to dollar-denominated assets, attracting global capital. However, this requires a series of prerequisites: the EU must establish a unified and deep capital market, eliminate barriers between national financial markets; the European Central Bank needs to play a more active role; and it may also be necessary to promote more key European commodities (such as energy) to be priced in euros. Each of these is a formidable political undertaking. A senior researcher at the Bruegel think tank points out that without substantial deepening of political union, a true financial union and monetary autonomy are like castles in the air.

The Game at the Brussels Summit and the Crossroads for Europe's Future.

The informal summit in Brussels on February 12, 2026, will serve as the first litmus test for Macron's initiative. Originally focused on enhancing European competitiveness, the meeting will now inevitably need to address its financing mechanisms and geopolitical implications. Macron aims to bundle a series of issues—including the Greenland crisis, U.S.-Europe trade and technology friction, strategic competition with China, and insufficient internal investment—into a narrative that underscores the urgency of European strategic autonomy.

There are differing voices within the EU regarding this matter. Southern and some Eastern European countries may welcome low-cost financing channels. However, Nordic and some Central European countries are more focused on traditional competitiveness issues such as market reforms and reducing regulatory burdens. European Commission President Ursula von der Leyen needs to find a balance among the various parties. She may promote a compromise solution: exploring the possibility of issuing targeted bonds for specific strategic projects under the existing Next Generation EU framework, rather than immediately launching an unlimited permanent European bond.

This reflects the core contradiction of the European integration process: crisis-driven leaps forward versus the deeply ingrained incrementalism of everyday politics. The COVID-19 pandemic gave birth to historic common debt instruments. Could the Greenland crisis and the return of the Trump administration become the next catalyst? Macron's bet is yes. His entire argument is built on one assumption: Europe is facing a unique window of opportunity, and missing it would be a grave mistake.

Regardless of the outcome of this summit, Macron has brought the core issue to the table: In an era of intensified competition among major powers, fluctuating alliance relationships, and a technological revolution reshaping the economic landscape, will the European Union continue as a loose association of sovereign states, slowly coordinating internal differences, or can it consolidate political will, take substantive steps in fiscal, financial, and strategic terms, and become a true force in the real sense? The proposal for European bonds, while superficially about debt instruments, is in fact another test of this fundamental question. The answer still lies hidden within the glass and steel structures of the European Quarter in Brussels, amid the ongoing game and trade-offs of the 27 national leaders.