Germany must recycle Euro, Why?

Dollar recycling is coming to end now. The global financial system needs yet another currency for this purpose. Yuan is a choice, true. But the better candidate is Euro. Germany must, therefore, get into the act. My rationale is given under:

Although Euro is managed by the European Central Bank (ECB) headquartered in Frankfurt as an apex of national central banks of the Eurozone countries, for all practical purposes it is Germany that makes the decision and others meekly follow. My FASA (facts, analysis, synthesis and strategy advice) follows:

Facts

1. As of mid-2026, Euro currency in circulation totals around 30.5 Billion banknotes valued at approximately €1.6 Trillion, alongside 154 Billion Euro coins worth €35 Billion.

2. Euro area gross debt outstanding is estimated as €13.5 Trillion and International gross debt outstanding is around €17 Trillion. These are mid 2026 figures

3. As regards to Germany, total outstanding government gross debt is about €2.8 Trillion

4. Federal Finance Agency contemplates new issuance €512 Billion in debt securities in the later part of 2026.

Analysis

1. Debt to GDP Ratio of Germany hovers around 64% which is less than half of the US Ratio of 131%

2. In 2025, trade surplus of Germany was estimated as €203 Billion whereas investment outflow is around €269 Billion, evidencing net savings generated within the domestic scene

3. Germany attracts other country savings as well. The net credit held by the German Central bank (Deutsche Bundesbank) stands at approximately €1.08 Trillion.

Synthesis

1. It is evident that Germany is in an unshakable position as the safe haven for other country’s savings and surplus remitted to German financial giants

2. Besides as for trade related surplus there is huge credit card surplus as well providing more liquidity within Germany than for any other country in the Euro zone

3. Geoeconomics power analysis mandates that strong economic foundation is sine-quo-non for projecting both political and military prowess across the globe.

Strategy Advice

1. Firstly, Germany should concentrate upon re-cycling Euro currency of the Euro-zone

2. Secondly, she must go for the jugular vein of American hegemony in replacing US Dollar as the main trading currency in the western hemisphere

3. Sign a Faustian Deal with China so that the latter opts for making Yuan as the global trading and investment currency while recycling Euro is granted to Germany as the birth right.

Navigating strategy amid geoeconomics, compel Germany to begin recycling Euro forthwith!

 

Cheers!

 

Muthu Ashraff

Strategy Adviser

Mobile: + 94 777 265677

E-mail: cosmicgems@gmail.com

Blog:   Strategy Adviser