(Finance) – Regarding the threat of tariffs, “Trump is looking at the trade deficit between the United States and Europe, especially on products. But we must look at the goods, the services, the capital account, It can’t all be black and white. There must be negotiations, commercial relationships in a framework that gives trust to partners. We cannot remove rules.” He said this Christine LagardePresident of the European Central Bank (ECB), at the closing event of the World Economic Forum in Davos.
“We must work together – he continued – It is therefore necessary sit at the table and negotiatewhere some will have positions of greater strength, but you cannot go alone, because you have to respect and understand others. I will never tire of underlining the strength of institutions. The institutions have great value and frameworks are here so players know the rules. There is value in having frameworks, because the best can then win, but in a shared set of rules.”
According to Lagarde, “Europe has a huge amount of talent and savings, but we need a big wake-up call to take action. If European leaders collaborate and respond to external threats, there is enormous potential to respond successfully. I am optimistic: we need union, to keep capital in Europe and, possibly, to attract qualified talents from abroad who are perhaps now disappointed.”
“The cost of energy has been a problem, but it is coming down, and now 70% of energy is non-fossil based. However, there is still too much bureaucracy – explained the number one of the ECB – This is a wake up call that we must take seriously to give a concrete response”.
“In the United States there was the IRA (Inflation Reduction Act, ed.) with significant subsidies to attract investments, but now these subsidies have been removed – said Lagarde – This leads to rethinking costs and opportunities. What is happening represents a challenge, but also an opportunity for Europe to rethink itself.Europe can become a major global player thanks to his talent and ambition.”