European Central Bank President Christine Lagarde searches as she goes to the European Parliament’s Committee on Economic and Monetary Affairs, at the European Parliament, in Brussels, Belgium September 25,2023
Yves Herman|Reuters
European Central Bank President Christine Lagarde on Friday stated Europe is now at a vital point, with deglobalization, demographics and decarbonization looming on the horizon.
“There are increasing signs that the global economy is fragmenting into competing blocs,” she stated at the European Banking Congress, according to a records.
Focusing on Europe, she stated that a constant decrease in the population of working age looks set to begin as early as 2025, along with environment catastrophes that are increasing every year.
Her response to these shocks was that huge financial investment would be required in a brief area of time, needing what she called a “generational effort.”
“As new trade barriers appear, we will need to reassess supply chains and invest in new ones that are safer, more efficient and closer to home,” Lagarde stated in the keynote speech.
“As our societies age, we will need to deploy new technologies so that we can produce greater output with fewer workers. Digitalization will help. And as our climate warms, we will need to advance the green transition without any further delays.”
She stated price quotes reveal the bloc’s prepared green shift will need an extra financial investment of 620 billion euros ($672 billion) every year till completion of the years, with another 125 billion euros each year for a digital shift.
“Governments have the highest debt levels since the Second World War, and European recovery funding will end in 2026. Banks will have a central role to play, but we cannot expect them to take on so much risk on their balance sheets,” Lagarde included, highlighting the proposed capital markets union.
Talks are still continuous over a possible CMU forEurope The goal is to develop a single market for capital, making it closer to what’s offered in the U.S.
The European Union states that the main target is to get “money – investments and savings – flowing across the EU so that it can benefit consumers, investors and companies, regardless of where they are located.”
