ECB President stated that Europe has become more resilient to economic shocks
Kyiv • UNN
ECB President Christine Lagarde stated that Europe has become more resilient to external shocks. She cited examples of the bankruptcy of Silicon Valley Bank and Trump's tariff policy.
European Central Bank President Christine Lagarde said that Europe has become less vulnerable to external economic shocks due to the strengthening of the financial system and progress in the "green" transition. Bloomberg reports, writes UNN.
Details
Speaking at the opening of the ECB's annual conference in Sintra (Portugal), Lagarde noted that improvements in banking and fiscal regulation, as well as investments in low-carbon energy, have already proven their effectiveness.
According to her, it is precisely thanks to these changes that the eurozone was able to weather the bankruptcy of Silicon Valley Bank, the tariff policy of US President Donald Trump, and massive oil supply disruptions without significant consequences.
Although we are more likely to face shocks that push inflation away from the target, the resilience that Europe has built means that their impact on our economy is more restrained
ECB assesses further steps on rates
The ECB President emphasized that the recent decision to raise interest rates was a "decisive decision," and the events of recent weeks have not provided grounds to revise this assessment. At the same time, she noted that the long-term sustainability of the peace agreement in the Middle East is "far from guaranteed," so the regulator will continue to carefully assess the economic situation.
Lagarde also stated that the ECB has significantly improved the analysis of operational economic data and inflation forecasting, and financial markets already understand the regulator's response principles well.
Monetary policy begins to act even before we make a decision. This gives us time to assess how a shock develops before we decide on a specific course of action, which is very valuable in conditions of high uncertainty
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