ECB President Lagarde addresses changing global economic environment

Christine Lagarde, the President of the European Central Bank, delivered her first speech in this role, emphasizing the need for Europe to redefine its ambitions and position in the evolving global economic landscape. Lagarde highlighted the significant shifts in the global trade environment, including ongoing trade tensions and geopolitical uncertainties that have led to a slowdown in growth. She pointed out that global trade growth has more than halved since last year, contributing to the lowest global growth levels since the financial crisis. Lagarde also discussed structural changes in trade patterns, such as a shift from external to domestic demand and from manufacturing to services. Additionally, she emphasized the importance of addressing new risks like climate change in the context of trade. Lagarde underscored the crucial role of Europe in navigating these challenges, urging policymakers to consider how the region can best position itself in the global economy. She touched on the need for policy responses to address the current economic conditions and outlined the key benefits of embracing a new economic ambition. Lagarde's speech reflects a call to action for Europe to rethink its approach and enhance its competitiveness in the face of a rapidly changing economic landscape.