ECB/Lagarde: Europe Faces Growing Threats to Its Trade

Forex - European Central Bank (ECB) President Christine Lagarde stated that the European Union is facing increasing threats to its trade with other regions of the world and that it needs to respond by deepening capital markets to finance innovation and increase productivity.

U.S. President-elect Donald Trump mentioned, without providing details, that he aims to increase customs duties on imports from a wide range of countries.

Lagarde remarked, “The geopolitical environment has become less conducive alongside rising threats to free trade from every corner of the world. The EU, being the most open among major economies, is more exposed to these trends than others.”

With this source of growth at risk, Lagarde emphasized that Europe must "urgently" act to increase existing financing for innovative new enterprises that could assist in economic expansion.

Lagarde predicts that if they adopt the U.S. approach, 8 trillion euros could become available for “long-term, market-based investments.”