A report by the Wall Street Journal said the United States and its allies have raised the costs of its debts to the European Union by about $300 billion since the crisis began, adding to the pressure on the European Central Bank to hike interest rates.
The report said the US and its European partners are now “further eroding” the European financial system by raising interest rates and cutting funding for projects that help struggling nations.
The increase in US and EU debt is the latest blow to the EU, which is struggling to maintain its fragile finances.
US President Donald Trump has pushed to overhaul the EU financial system, calling it the “single greatest geopolitical threat to global peace.”
EU leaders are meeting in Brussels on Tuesday to discuss how to handle the crisis, and the EU could soon decide to lift the euro-dollar peg that has kept the value of the euro in lockstep with the US dollar.
The European Commission on Monday said it would be launching a review of the EU-US relationship.
The US is now “feasible” to buy more US bonds from the European Commission, the commission said, citing the rise in debt of the US.
The EU’s foreign exchange market has fallen by more than 80 per cent since March.