Lagarda in Davos: Europe needs to develop the capital market to keep their resources

This belief in Davos during the panel discussion on the prospects of the global economy was expressed by the President of the European Central Bank Christine Lagarde, Ukrinform correspondent reports.

“I would like to tell you what Europe is successful. It has strong GDP, total Eurozone deficiency – about 3%, the latest inflation rates – 2.4% and will be reduced. The interest rate is 3%, a huge number of talents, a huge number of savings. And a great signal to awakening that really calls Europeans to action. If European leaders can bring it all together, respond to this signal to awakening and existential threat, Europe has great potential to achieve its goal, ”the European Central Bank president said.

She noted that the EU needs further development of the capital market and should create the right conditions to keep European talents in Europe and use the accumulated resources at home and not in third countries. According to her, it is time to “import” into Europe at least some of the talents who, for one reason or another, find themselves on the other side of the ocean.

“The existential threat proceeds from the fact that investors are not very set to come to Europe. Among the adverse factors is the high price of energy. But now the prices for it are reduced and not least by reducing energy from fossil fuel. The level of use of renewable sources is increasing – up to 70% of energy comes from here. Another (negative) factor is a large number of “red lines” and excessive bureaucracy “, – said Lagarde.

Read also: European Central Bank for the first time since 2019 has reduced the key interest rate According to her, these circumstances are the “signal to awakening” that Europeans and those who form policy should really take to the heart and find a quick response.

“There are great incentives to invest in the United States because there is an act of inflation and significant subsidies for those who invest in the US. But I am sure that people have to rethink this. What is happening in Europe is a challenge, but also a source of great opportunities. Our answer depends whether Europe will be a key player. But, as I said, it has big talents, means and ambitions, ”the European Central Bank’s head emphasized.

She was unable to give a clear answer to the moderator’s question whether President Trump was right when he said that Europe’s attitude to 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 balance sheet, exchanges and capital expenditures-all this cannot be black and white. What is true – there must be negotiations, there must be trade relations that are organized in such legal conditions that give partners confidence. This may not be about the abolition of all the rules and ignoring all institutions, ”Lagarde said.

She reminded that in the world of 90+ countries are members of the IMF and the World Bank, about 190 are part of the WTO. All these countries work together. Some of them really have positions stronger than others, but they all need each other to interact and move forward.

Read also: DavosThe forum ended with the adoption of more than 50 arrangements – organizers “There is one thing that Europeans have studied during the end of World War II – you cannot move alone. You have to work together, respect each other, understand each other … The best can win, but within the established rules. This is how it works in the world, ”the President of the Central Bank emphasized.

“Europe is not a myth. Europe is a fantastic example of transformation, ”she added.

As it was reported, the World Economic Forum with the participation of leading world politicians and representatives of the business community was held in the Swiss Davos during the week. The participants of the event were looking for ways to address the most urgent issues of world development, economic stability and security.

Photo: World Economic Forum