EU strategies to counter US economic coercion outlined in ECFR policy brief (ecfr.eu)

• EU member states jointly hold $2 trillion in US Treasuries, making them largest foreign holder.
• US threats include converting Treasuries to zero-coupon century bonds under IEEPA.
• The ACI is a key tool for EU escalation, targeting US tech and financial services.

"ECFR policy brief presents three scenarios for US economic coercion against the EU in finance, energy, and technology, with EU response strategies of mitigation, deterrence, and escalation. The authors argue EU should act on flows rather than stocks, use financial markets to send messages, and build durable infrastructure."