What did Christine Lagarde say about Europe's growth model?

Christine Lagarde stated that Europe's traditional export-led growth model is under strain and needs to adapt to a changing global environment.

Why has globalisation become a vulnerability for the EU?

Lagarde explained that Europe's openness to globalisation, once a strength, has become a vulnerability due to geopolitical shifts and increased competition.

What reforms did Christine Lagarde propose for the EU?

Lagarde proposed reviving mutual recognition, streamlining decision-making, and creating optional EU-wide legal regimes to foster internal market growth.

Home / Business and Economy / Lagarde: Globalisation Now a Vulnerability for EU

Lagarde: Globalisation Now a Vulnerability for EU

21 Nov

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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.

Lagarde: Globalisation Now a Vulnerability for EU

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.