Nov 23, 2025
3 min read
The President of the ECB warns that the euro area is on the verge of moderate growth. It brings together the governments and the EU and the EU ...
A sharp warning Christine Lagarde chose a message in Vienna to send a message that shows directly to the heart of Europe York. The President of the European bank warned that the threat to the EU does not come from compensation but from a deeper risk: clinging to a low balance that weakens the government. It makes debt management difficult and reduces the power of the ECB to maintain price stability.In his speech at the Tripartite Commission, Lagarde made a strong connection between monetary policy and monetary policy in recent years. Defend the freedom of the Frankfurt Center. It is the most adequate study of government spending in the production sector. And he invites the countries of the Eurozone to use the tools provided by the new laws.of the European budget cycle.
Lagarde begins by rejecting the calculation based on governments putting pressure on the ECB during the dengue period.Remember that in this section "Money and financial resources work together", with the purchase of savings and the increase of credit to support entrepreneurs and businesses.A strategy allowed the euro's wealth to return to pre-Convid levels "in seven rooms", compared to the twenty-nine needed after the global financial crisis.The increase in credit, which rose by fifteen loans compared to the period before the start, did not affect the ECB's forecast.If this is the most extreme way of this generation, the institute has done without moves."We have increased rates at the fastest rate, the largest rate in our history," Lagarde said, acknowledging that inflation had fallen "close to our target of 2%."
The holding of the balance sheet continues in the equation, with a large amount of money to reduce the port of 1 1100 billion euros.During this period, the European government improved the first balance by four points over 2020 and 2024, with consumers but generally consistent in its return from the end of its rescue from the end of its seizure.Speed.For Lagarden, all this shows that the "independence of the ECB does not require", supported by a regulatory framework that remains one of the strongest in the world.
The president then points to the real problem: that governments tend to sacrifice investments and reforms to support short-term social pressure.The drift you define as "fiscal stagnation", in which fiscal consolidation destroys the ability to create growth, starts a cycle of continuous adjustments and reduces the scope for countercyclical policies.This scenario, he warns, affects not only the pace of the economy, but also the efficiency of the central bank It also has an effect on its operation.Year allows a return in exchange for growth-oriented investments and reforms.It is too little to affect the general trajectory of the blockade.
Because of the political importance of the story, Lagardee has three practical lessons.The first concerns the allocation of government funds.According to the President, directing 1% of GDP to research and development and another 1% to education, will increase the length of 6%.A result that reduces debt not by higher taxes or cuts in production costs, but by strengthening the economy.
The second pillar is the use of common resources. Lagarde cited the historic example of CERN, which was born in the 1950s with the joint contribution of European countries and became an incubator for decisive innovations such as the creation of the World Wide Web and advanced technologies in the field of diagnostics and autonomous driving. This precedent is one that the president must guide Europe in a new strategic area. This is the case with the "Readiness 2030" initiative, which coordinates purchases in the defense sector and mobilizes 150 billion euros for anti-drone systems, air defense and artillery. "We know whatmaybe when Europe decides to act together," Lagarde said, underlining the need to overcome the fragmentation of national intervention.
The third issue is about mobilization of private capital.Lagarde reminds that Europe, with a common need of 1,200 billion euros per year until 2031, must support the green transition, the digital transformation and the strengthening of defenses.Therefore, the President emphasizes that well-designed programs can generate multiplier effects: the European Structural Funds have attracted "1.10 euros of private investment" for every euro, and the companies involved have permanently increased their capital and productivity.A public-private combination, if strengthened, could become a lever for regaining ground vis-à-vis the great global economies and support the European social model for decades to come.
In conclusion, Lagarde recalled a sentence that occurred to Johan ASTRAX II: "If only there was more time; you said that the idea is faster than I can write a text that exceeds the need."Speed up.
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