Rerun of dollar unilateralism

DONALD Trump's ascent seems likely to unleash on Europe a new and damaging form of dollar unilateralism - a peril the old Continent has periodically suffered since the 1960s, but has lain dormant for much of the past 35 years.

The approaching presidency of a go-for-growth "America-first" businessman unschooled in any kind of diplomacy poses a grave threat to the cohesion of Europe's economic and monetary union. In store is a probable shift in the US and Europe - disruptive rather than coordinated - to a long-championed goal of fiscal loosening and monetary tightening.

Mr Trump's mercantilist-protectionist leanings, espousal of economic populism and promises to shake up ties with America's allies combine all the traditional ingredients for toxicity in transatlantic relations and none of the sources of stability. This could hit European exports to the US, one of the few factors supporting anaemic European growth.