Christine Lagarde has called for a comprehensive reassessment of Europe’s economy, saying the region must adapt to what she described as the emergence of a new global order. Speaking in an interview with French radio RTL on Wednesday, the European Central Bank president stressed that structural changes are needed to ensure long-term economic resilience.
Lagarde noted that potential tariffs imposed by the United States are likely to have only a limited impact on inflation across the euro area. However, she said the effects would not be evenly distributed, with Germany expected to face greater economic pressure than France.
She also highlighted that European nations could substantially improve their economic strength by removing internal non-tariff trade barriers that continue to restrict commerce within the European Union. According to Lagarde, reducing these obstacles would help boost competitiveness and support growth across the bloc.
