ECB President Christine Lagarde said Euro can only rival the US Dollar’s dominance in global finance if European Union leaders commit to improving productivity and internal efficiency. In an interview with German broadcaster ARD, Lagarde called on EU policymakers to reduce trade barriers within the bloc and simplify regulatory frameworks.

“Political leaders need to engage to make our economy more productive and more efficient,” she said, adding that such steps are essential for Euro to become the world’s leading currency.

Lagarde also reiterated that interest rates in the Eurozone are now “in a good place” following June’s deposit rate cut to 2.00%. She emphasized ECB’s full commitment to its 2% inflation target.