Lagarde Advocates for EU Economic Integration

European Central Bank President Christine Lagarde emphasized the urgent need for deeper economic integration and a unified capital markets framework in Europe, citing increasing geopolitical tensions and a growing technology gap with the U.S. as driving factors. She noted that Europe's past inaction has cost valuable time, and the current situation requires immediate action to redirect households' substantial cash reserves into productive investments. Lagarde highlighted that while some progress has been made, national interests often hinder effective proposals, leading to billions being sidelined rather than invested. Additionally, Governing Council member Robert Holzmann stressed the necessity of maintaining a restrictive monetary policy to combat lingering inflation risks amid strong wage gains and geopolitical uncertainties. Lagarde confirmed the ECB's commitment to achieving a 2% inflation target while navigating the complex economic landscape, including managing risks from energy prices and inflation disparities among member nations. The ECB will continue to adapt its policies based on economic data and trends as it seeks to support growth while achieving price stability.