ECB, Lagarde: ‘EU growth model looks to a world that is disappearing’

Frankfurt (Germany), 21 Nov. (LaPresse) – ‘Europe’s vulnerabilities stem from a growth model geared towards a world that is gradually disappearing.’ This was stated by ECB President Christine Lagarde at the European Banking Congress in Frankfurt. “We have embraced globalisation more than any other advanced economy. In the two decades prior to the pandemic, foreign trade as a percentage of GDP nearly doubled in the EU, while in the United States it remained virtually unchanged. This deep integration has brought significant benefits: the number of jobs supported by EU exports increased by 75%, reaching nearly 40 million, and for many years this was a factor of resilience. But today, that same openness has turned into a vulnerability. Exports have become a much less reliable engine of growth, reflecting the changing global landscape,” Lagarde added.