The president of the European Central Bank warned yesterday that the region is increasingly ‘vulnerable’ to shocks and lagging behind in growth-driving areas.
Christine Lagarde told a banking conference that Europe is ‘geared towards a world that is gradually disappearing’.
It comes as Germany and France grapple with crippling economic and political crises. A closely watched purchasing managers’ index yesterday showed growth across the eurozone remained sluggish this month.
‘Europe has become more vulnerable,’ Lagarde said.
Warning: European Central Bank boss Christine Lagarde says region is increasingly ‘vulnerable’
‘Global shocks have intensified, with rising US tariffs, Russia’s invasion of Ukraine and stiffening competition from China.’ She added Europe’s domestic market had ‘stood still’ in areas set to underpin growth such as the digital sector and AI, noting that the model of relying on the export of goods is no longer working.
She warned that more years of ‘lost growth, lost productivity, would not just be disappointing for future generations, it would be irresponsible on our part’.
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