Brussels – “Uncertainty is harming Europe’s economy, which is deeply integrated in the global trading system, with 30 million jobs at stake.” Ringing the alarm bells is Christine Lagarde, the president of the European Central Bank, who starts doing the math, limiting herself to the whims of US President Donald Trump, without considering the repercussions of a conflict in the Middle East on a whole new, ever-widening scale, and the ongoing Russian-Ukrainian conflict. She singles out “protectionism, zero-sum thinking, and bilateral power plays” in her considerations on the ECB blog.
To avoid the worst and navigate in safe waters, “Europe must strengthen three foundational pillars: geopolitical credibility, economic resilience, and legal and institutional integrity.” This is Lagarde’s recipe for a future safe from shocks — a renewed call for reform. “Europe must take decisive steps by completing the single market, reducing regulatory burdens, and building a robust capital markets union,” she said. Moreover, strategic industries, such as green technologies and defense, “should be supported through co-ordinated EU-wide policies.”
It does not end there: the to-do list also includes twelve-star institutional reform and overcoming decision-making mechanisms that are no longer functional. “A single veto must no longer be allowed to stand in the way of the collective interests of the other 26 Member States,” Lagarde said, adding that a “more qualified majority voting in critical areas would enable Europe to speak with one voice.” In a nutshell: ‘We must reform Europe’s institutional structure.”
English version by the Translation Service of Withub
