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This belief was expressed in Davos by European Central Bank President Christine Lagarde during a panel discussion on the prospects for the global economy, an Ukrinform correspondent reports.
“I would like to tell you what Europe is doing well. It has a strong GDP, a total Eurozone deficit of around 3%, the latest inflation figures are 2,4% and will be coming down. An interest rate of 3%, a huge amount of talent, a huge amount of savings. And a big wake-up call that really calls Europeans to action. If European leaders can put all this together, respond to this wake-up call and to the existential threat, Europe has a huge potential to achieve its goal,” said the President of the European Central Bank.
She noted that the EU needs to further develop the capital market and create the right conditions to keep European talent in Europe and use the accumulated resources also at home, and not in third countries. According to her, it is time to "import" to Europe at least some of the talent that for one reason or another ended up on the other side of the ocean.
"The existential threat comes from the fact that investors are not very willing to come to Europe. Among the unfavorable factors is the high price of energy. But now its prices are falling, not least due to the reduction of energy from fossil fuels. The level of use of renewable sources is increasing - in the Eurozone, up to 70% of energy comes from here. Another (negative) factor is the large number of "red lines" and excessive bureaucracy," Lagarde noted.
According to her, these circumstances are the "wake-up call" that Europeans and policymakers should really take to heart and find a quick response.
"There are great incentives to invest in the United States because there is the Inflation Reduction Act and substantial subsidies for those who invest in the United States. But I am sure that people need to rethink this. What is happening in Europe is a challenge, but also a source of great opportunities. Whether Europe will be a key player or not depends on our response. But, as I said, it has great talents, means and ambitions for this," the head of the European Central Bank emphasized.
She was unable to give a clear answer to the moderator's question about whether President Trump was right when he said that Europe's attitude towards the United States was "unfair."
"I can't say 'yes' or 'no'. We have to look at the size of the trade deficit in the current account, at exchanges and at capital expenditure - all this cannot be black and white. What is true is that there must be negotiations, there must be trade relations that are organized in such legal conditions that give confidence to partners. This cannot be about abolishing all the rules and ignoring all the institutions," Lagarde noted.
She reminded that in the world 90+ countries are members of the IMF and the World Bank, about 190 are members of the WTO. All these countries act together. Some of them do have stronger positions than others, but they all need each other to interact and move forward.
"There is one thing that Europeans have learned since the end of World War II - you cannot move alone. You have to work together, respect each other, understand each other... The best may win, but within the established rules. This is how the world works," the central bank president emphasized.
"Europe is not a myth. Europe is a fantastic example of transformation," she added.
Photo: World Economic Forum
