Europe’s US holdings: Leverage lies in marginal demand
Government
The question of whether Europe’s $12.6 trillion holdings of US assets be used as leverage if relations with Washington sour has become increasingly salient in policy and market discussions. This column argues that Europe’s US debt holdings offer little scope for strategic deployment as they are fragmented across jurisdictions and institutions, and efforts to weaponise them for political purposes would largely backfire. Its position as the largest external holder of US federal debt – with
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