In a context of higher financial volatility and geopolitical tension due to the Russian invasion of Ukraine, the euro maintained its place as the second most-used global reserve currency in 2022.

Nonetheless, the currency still suffers from structural deficiencies preventing it from rivalling the US dollar’s hegemony. Although rates are no longer negative, euro-denominated bonds offer lower yields than in the US or UK.

The bloc’s sovereign bond market remains fragmented, with few triple-A