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Lagarde: Globalisation Now a Vulnerability for EU
21 Nov
Summary
- Europe's export-led growth model is under strain, says ECB President.
- Globalisation, once a strength, is now a vulnerability for the EU.
- Lagarde urges focus on domestic economy and internal market reforms.
European Central Bank President Christine Lagarde has signaled a significant shift in Europe's economic strategy, stating that the continent's long-standing export-led growth model is becoming unsustainable.
Lagarde highlighted that Europe's deep integration into globalisation, once a cornerstone of its resilience, has now transformed into a vulnerability. This change is driven by a fracturing global order, geopolitical tensions, and intense competition, rendering exports a less reliable engine for growth.
To counter these challenges, Lagarde called for a renewed focus on bolstering the domestic economy and implementing crucial internal market reforms. These include reviving mutual recognition, streamlining decision-making processes, and creating optional EU-wide legal frameworks to foster innovation and competitiveness in areas like digital technology and artificial intelligence.
