Lagarde: The European economy needs a fundamental overhaul

European Central Bank President Christine Lagarde warns that the European economy needs a fundamental overhaul to respond to the new international order. In an interview with RTL, she emphasized the need for greater unity and the removal of internal trade barriers within the EU.

Regarding the planned US tariffs announced by US President Donald Trump in February, she said that their impact on inflation would be moderate, especially for Germany.

However, she believes that the uncertainty caused by such sudden moves is a bigger problem.

She criticized Trump's transactional approach and unrealistic demands, especially in connection with his condition to cancel tariffs in exchange for the purchase of Greenland. According to Lagarde, Europe should respond collectively and decisively.

(reuters, pir)