Sebastian Derungs
Lagarde pointed out Europe's exposure to the strategic use of essential raw materials and technologies. She explained, "Europe's vulnerability comes from the fact that its growth model is built for a world that is slowly fading away."
She added, "Exports have become a much less dependable source of growth, due to changes in the global environment."
Lagarde suggested that instead of depending on weakening external demand, the EU should act swiftly to lower domestic barriers that hinder businesses from providing goods and services to other countries in the region without facing costly regulatory hurdles.
She mentioned, "The ECB's analysis indicates that internal barriers to the movement of goods and services are similar to tariffs of 100% and 65%, respectively."
To act more swiftly, the European Union needs to make more decisions through majority voting among member states, ending the practice of allowing individual countries to block important decisions with veto power, according to the ECB chief.
source: wsj.com
She added, "Exports have become a much less dependable source of growth, due to changes in the global environment."
Lagarde suggested that instead of depending on weakening external demand, the EU should act swiftly to lower domestic barriers that hinder businesses from providing goods and services to other countries in the region without facing costly regulatory hurdles.
She mentioned, "The ECB's analysis indicates that internal barriers to the movement of goods and services are similar to tariffs of 100% and 65%, respectively."
To act more swiftly, the European Union needs to make more decisions through majority voting among member states, ending the practice of allowing individual countries to block important decisions with veto power, according to the ECB chief.
source: wsj.com