Christine Lagarde warns that the economy of the European Union is vulnerable due to dependence on international trade and stagnation in key areas, proposing reforms for recovery.

The President of the ECB, Christine Lagarde, stated that the economy of the European Union is "designed for a world that is disappearing," highlighting the vulnerability of the bloc due to its dependence on international trade and partners like China and the USA. She emphasized the stagnation of the internal market in essential areas such as digital technology and artificial intelligence, and pointed out that the lack of reforms is pushing the economy onto a weak trajectory. Lagarde mentioned China's influence on the supply of critical raw materials and warned that European savers are investing in American stocks, leaving Europe behind.

To counter these challenges, Lagarde proposed reducing trade barriers between member states and mutual recognition of regulated companies. She also advocated for the introduction of qualified majority voting in tax matters to facilitate VAT harmonization and improve small companies' access to the European single market. Despite the challenges, Lagarde also mentioned Europe's strengths, such as a resilient labor market and growing digital investments.