The change in the presidency of the United States appears to result in a reduced U.S. role in European security, heightened trade tensions, and setbacks to the climate agenda—calling for stronger ‘strategic autonomy’ for the European Union. In this context, the ACES Theme Group "Contested Economic Challenges" is organizing a short series of seminars to examine the challenges and potential policy responses. Previous speakers have highlighted the importance of strategic autonomy in the domains of technology and defense, while this seminar will focus on Europe’s dependence on the international financial system.

For decades, the United States has enjoyed an unparalleled advantage in global finance, thanks to the dollar’s status as the world’s leading reserve currency. But cracks are beginning to show. China is actively promoting the international use of the renminbi, and both China and the eurozone are increasingly wary of excessive reliance on the U.S. financial system and its associated geopolitical risks. In her talk, Paola Subacchi, international economist and Professor of Political Economy at the University of Bologna, will reflect on the key drivers of this development and its possible geo-economic implications.

About Paola Subacchi

Paola Subacchi is an international economist and Professor of Political Economy at the University of Bologna. She is the Incoming Chair in Sovereign Debt and Finance at Sciences Po, Paris, and a partner at Essential Economics, a London-based economic consultancy advising governments, international organisations, and private companies. She also serves as a non-executive director for public and private companies and sits on the board of the Istituto Affari Internazionali in Rome. A published author, Paola has written books, research-based articles, and opinion-pieces on international economics and finance. She is a regular contributor to Project Syndicate. From 2019 to 2024, she was at Queen Mary University of London, where she helped establish the Queen Mary Global Policy Institute. Previously, she was Director of Economic Research and Senior Fellow at Chatham House (The Royal Institute of International Affairs) in London.