Christine Lagarde, president of the European Central Bank, criticized Europe’s outdated economic model, emphasizing the need for policymakers to act after years of inaction. Speaking at the European Banking Congress, she noted that reliance on exports has become a vulnerability, with manufacturing, particularly in Germany, facing significant downturns. Lagarde urged a focus on strengthening the domestic economy to combat global challenges, highlighting the importance of removing internal trade barriers. She warned that continued stagnation could lead to a slow decline in growth and productivity.
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