The head of the European Central Bank (ECB), Christine Lagarde, told French journalists that the election victory of Donald Trump, the Republican candidate for president of the United States, would represent a clear threat to Europe. Lagarde separately mentioned the possibility of introducing protective tariffs, the US commitment to NATO and the fight against climate change.
The comments made by the head of the ECB during the broadcast of the French television channel France 2 are surprisingly sharp, because central bank officials have generally refrained from commenting on political events. However, this is an example of European politicians’ concern regarding Trump’s possible election victory.
“If we take a lesson from history, looking at how she governed her first four years, she is clearly a risk,” Lagarde told the Financial Times.
The head of the Central Bank identified three areas where fears are greatest in Europe.
“Just think about the protective habits, [USA] commitment to NATO, fight against climate change. In these three areas alone, US interests have not been aligned with European interests in the past,” she said.
However, when reporters asked Lagarde whether the Trump presidency might leave Europe alone in supporting Ukraine against a full-scale Russian invasion, the central bank chief was more optimistic.
“[See on vähetõenäoline]because there are many elected representatives in the United States Congress who are deeply opposed to Russia’s war of aggression against Ukraine and who continue to finance and support Ukraine,” he said.
The threat is also mitigated by the fact that late last year the US Congress passed an amendment to the law prohibiting the president from leaving NATO without congressional approval.
At the same time, Trump has already promised to impose high protective tariffs of 10% on other countries, including allied countries, so economic cooperation between the United States and the European Union could come under pressure, writes Bloomberg.
Lagarde, who held a ministerial post in the French government until 2011, denied rumors that she intended to return to French politics before the end of her eight-year term at the helm of the ECB in 2027.
According to the head of the central bank, the worst inflation is already behind us and, if current trends continue, the ECB’s next decision will be to lower interest rates. However, he did not specify when that decision will be reached.
According to Lagarde, the ECB is winning the fight against inflation and supply chain disruptions caused by attacks by Houthi rebels are under control. However, the interview was recorded before it was revealed that the US, UK and several other Western countries had retaliated against Houthi structures overnight on Friday.
2024-01-12 15:48:00
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