Pierre Gramegna, Managing Director of European Stability Mechanism talks to CNBC's Squawk Box Asia's anchor Martin Soong about EU's fiscal and monetary situation, saying the Euro's attractiveness as a safe haven currency is rising as U.S. dollar weakens.

Brussels

European finances are reported to be stable, with total debt relative to GDP decreasing since the pandemic years and countries complying with new fiscal rules. The European Central Bank has achieved a balance with inflation and interest rates both at 2%, which is seen as a rare and positive situation.

Investor interest in euro-denominated bonds has increased, reflecting greater trust in the euro area, while the role of the US dollar as a safe haven is being questioned. Additionally, discussions about developing a digital euro are ongoing, with strong support from European institutions to meet consumer needs and enhance financial reliability.

Euro gains ground as global safe haven amid dollar decline

how would you rate EU finances right now geography by geography because the broad trend has been and a lot of this has to do with some of it has to do with what's happening in the US and less interest in from the USA in Europe for example a lot of it also has to do with what's happening over in in in Russia there's been a lot of spending going on the fiscal taps are going full bore maybe belatedly but but at least finally how are European finances holding up well I would say that they're holding up well in fact the total debt compared to GDP has gone down since the Kovac years second we have a new stability and growth pact which means that we have a stable framework on which we measure if countries comply with the benchmarks and the good news is they do comply with the benchmarks and it shows that having rules and a framework is an advantage for countries and they they can design a path to comply with the new rules so something that in fact other areas of the world don't have so I think we have a discipline and we we are applying it and honestly I am confident that the new rules will allow for the necessary flexibility without compromising with financial stability so having common rules for Europe on fiscal balance is really an advantage and I think for the time being it is really delivering all right that's on the fiscal side on the monetary side right a lot of folks are thinking the ECB is pretty much done cutting rates do you think they are I mean this is a sensitive question I don't mean to paint you in a corner but navigated as you see fit do you think they are done cutting rates or do you think they need to or should be cutting further I think we've the central bank European Central Bank has found good balance here now inflation is at target 2% and interest rates at are 2% is a kind of magic situation that happens very rarely but more importantly what you can see is that there's been a lot of attention and attraction towards the euro and in the last month the role of the euro the international role of the euro has been much more in the forefront we have also seen on the markets as European stability mechanism we are very active on the markets as we issue bonds that the interest of investors towards euro denominated bond is increasing a lot that there is a lot of trust in the euro area and I think this is good news also that there is a some questioning on the role of the dollar of safe haven so I think this is an opportunity that Europe must sees that we as ESM are advocating that the European Central Bank is advocating and I think there's a lot of interest in that direction yeah and you know what that's one of the reasons why you're on the road and joining us on the phone from Tokyo on a road trip right and you're you're talking to a lot of people about a digital euro a euro backed stablecoins as well how are those conversations going well and this discussion about the digital euro is in you know on our mind in every meeting in the euro group that I attend and we have recognized the urgency for us as Europeans to develop this digital currency because it would help us and to have faster or reliable one less expensive one and it really corresponds to the needs of consumer so this project is going ahead and it has the full support of stability mechanism

World leaders have launched an initiative, “Democracy Now,” on the sidelines of the UNGA to counter far-right extremism and defend multilateralism. As the UN faces skepticism, a new initiative by Brazil, Spain, Chile, Uruguay, and Colombia is gaining support among member states.

New York

Leaders at the U.N. push reforms to counter authoritarian rise

U.S. Secretary of State Marco Rubio met Russian Foreign Minister Sergei Lavrov on the sidelines of the U.N. General Assembly. The meeting came a day after President Trump appeared to soften his language on the Ukraine war, raising questions about U.S. policy direction.

Manhattan

Ukraine Invasion

Rubio meets Russia's Lavrov after Trump shifts tone on Ukraine war

The family of one of the 67 people killed earlier this year when an American Airlines plane and a  U.S. Army helicopter collided over Washington, D.C., filed a lawsuit against the government and the airline.

Washington

Widow of D.C. plane crash victim sues American Airlines, federal gov.

The new Paramount+ documentary "Bodyguard of Lies" highlights the efforts across four presidential administrations to conceal the challenges the U.S. faced during the Afghanistan

New documentary uncovers gov. deception during Afghanistan War

In his address to the U.N. General Assembly, Ukrainian President Volodymyr Zelenskyy warned that Russia wants to expand the war beyond Ukraine.

Putin wants to expand war beyond Ukraine, Zelenskyy warns U.N.

The Trump administration is rehiring hundreds of federal employees who were laid off during cuts made by the Department of Government Efficiency, or DOGE. CBS News' Olivia Rinaldi has more details.

Trump administration rehires hundreds laid off during DOGE cuts

Former French President Nicolas Sarkozy faces up to 10 years in prison if a Paris court convicts him of secretly using funds from the Libyan government of late dictator Moammar Gadhafi to finance his presidential campaign in 2007.

Paris

Ex-French President Sarkozy awaits verdict in trial

An international aid flotilla trying to deliver aid to Gaza said on Wednesday (September 24) it was attacked overnight by drones in international waters off Greece, prompting Italy to send a navy ship to come to its assistance.

Middle East Conflict

Italy sends navy ship to help Gaza aid flotilla after drone attack

At least three people were shot at a Dallas Immigration and Customs Enforcement facility on Wednesday morning, officials said. One victim was killed, while two others are injured. The shooter died of a self-inflicted gunshot wound.

Dallas

Three people shot at ICE facility in Dallas, officials say

The U.S. has long argued China should give up the developing-country status because it is the world’s second-largest economy.

Beijing

China gives up WTO developing-country status as tariff tensions linger

U.S. President Donald Trump reversed his stance on the Ukraine war after meeting President Volodymyr Zelensky at the UN General Assembly, now expressing confidence that Ukraine can reclaim all its territory.

Trump reverses stance on Ukraine after meeting with Zelenskyy

After a six-day suspension, late-night host Jimmy Kimmel broke down in tears during his return to TV with a monologue focused on the importance of the maintaining the right to free speech while still poking fun at the Trump administration.

Los Angeles

Jimmy Kimmel makes emotional return with monologue about free speech

Typhoon Ragasa, the world's most powerful tropical cyclone this year, struck the southern Chinese city of Yangjiang on Wednesday after lashing Taiwan and Hong Kong with ferocious winds and heavy rains.

Yangjiang

Typhoon Ragasa lashes Hong Kong, Taiwan, southern China

Mainland China is bracing for Super Typhoon Ragasa, after the powerful storm caused widespread destruction across the region. In Taiwan, at least 14 people have died in flooding triggered by the cyclone.

Kowloon

Typhoon Ragasa sweeping towards China, 14 killed in Taiwan

A jury has convicted Ryan Routh of attempting to assassinate U.S. President Donald Trump on his Florida golf course last year. He was found guilty of all five charges, which included attempted assassination of a major presidential candidate and assaulting a federal officer.

West Palm Beach

Ryan Routh found guilty of trying to assassinate Trump

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Trump takes questions during meeting with Zelenskyy

Chipmaker Nvidia said it would invest up to $100 billion in OpenAI, the developer of ChatGPT, as part of a strategic partnership. CBS MoneyWatch correspondent Kelly O'Grady has more details.

Santa Clara

Rise of AI

Nvidia to invest up to $100 billion in OpenAI

For the first time in more than half a century, astronauts will soon be heading back to the moon. CBC's Nicole Mortillaro breaks down the preparations for the mission, Artemis II, which will send astronauts on a historic loop around the moon.

Houston

NASA prepares to send astronauts around the moon

U.S. President Donald Trump addressed the United Nations General Assembly in New York City, where he pushed back on countries that have formally recognized a Palestinian state. Trump also touted U.S. immigration policy.

Trump delivers address at U.N. General Assembly

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Hong Kong Island

Super Typhoon Ragasa targets Southern China, Hong Kong

Russian President Vladimir Putin offered to voluntarily maintain the limits on deployed strategic nuclear weapons set in the 2010 New START accord after it expires in February if the U.S. agreed to do the same.

Moscow

Putin offers Trump one-year extension to nuclear weapons treaty

President Trump announced Monday the FDA believes pregnant women should not take acetaminophen, the active ingredient in Tylenol, claiming there could be a link between the medication and autism, despite objections from medical experts.

Trump, FDA tell pregnant women not to take Tylenol

ABC announced Monday that "Jimmy Kimmel Live!" will return to the air Tuesday night (September 23). The network pulled the show last week following a remark from Kimmel about the death of Charlie Kirk.

Jimmy Kimmel returning to air

As leaders from around the globe come together at the United Nations General Assembly in New York this week, conflicts in Gaza and Ukraine continue to rage.

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Monday marks the second day of strike action after a similar walk-off was called on Sunday by the southern European country's largest trade union, the Italian Confederation of Labour (CGIL).

Rome

Thousands strike across Italy in solidarity with Palestinians in Gaza

The Trump administration is adding $100,000 to the existing fee for H-1B visa applications, taking aim at a program that is used to attract highly skilled workers to the U.S.

Trump administration to add $100,000 fee for H-1B visas

President Donald Trump urged Attorney General Pam Bondi in a social media post to move forward with cases against several people connected to the U.S. government. CBS News justice correspondent Scott MacFarlane has more.

Trump urges Pam Bondi to go after his political foes

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Russia denies violating Estonian airspace

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Glendale

Trump closes out Charlie Kirk memorial

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Breakdown