The president of the European Central Bank (ECB), Christine Lagarde, considers that given the potential challenges for the EU’s competitiveness in the markets that events such as the possible victory of Donald Trump in the November elections in the United States may pose, “the best “Defense is attack.”
In a colloquium at the World Economic Forum in Davos, the central banker of the euro zone stressed the importance of taking the initiative to have a strong and deep market, “having a true single market.”
“I think that the best defense, if we want to see it that way, is the attack. And to attack correctly it is necessary to be strong at home,” said the Frenchwoman, recalling that, although the EU is a huge economic zone in the world, it is not yet completely a single market.
In this sense, he has urged that “the money saved in Europe, or the money associated with pensions, be really invested in a capital market union that really works efficiently”, in order to raise the investments necessary to the transition towards a greener economy.
On the other hand, Lagarde, who, respecting the rules of the ECB, could not make comments that affect or could reveal anything about the entity’s position with less than a week left for the meeting of the Governing Council, has indicated that the world economy is moving towards the “normalization of non-normality.”
In this sense, he recalled that consumption is gradually beginning to fade as a driving force of growth as the unusually tight labor market offers symptoms of less rigidity and excess global savings, especially in advanced economies, is decreasing, approaching “practically steel”.
“If you combine these two factors, less employment rigidity and less savings, clearly consumption is no longer as powerful a force as it used to be,” he noted.
On the other hand, he highlighted that trade is beginning to normalize after the disturbances of the last two years, while a third normalization throughout the world, not including the euro zone, would be the slowdown in inflation.?
2024-01-19 19:00:06
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