Challenging times have arrived for Europe. According to its leaders, the continent must reduce its dependence on the United States. Although it is a noble goal, it is difficult to achieve.
Christine Lagarde, President of the European Central Bank (ECB), believes many of the European Union’s current problems appeared because of the US trade policies. However, the crisis may offer Europe a rare opportunity to gain financial independence from its transatlantic ally. Lagarde added that Trump’s current tariff strategy forced the ECB into a constant battle with inflation.
She noted that the central bank is engaged in a daily struggle but remains determined to bring inflation down to its 2% target. However, the road to that goal is anything but straightforward. Some recommend that the ECB gallop toward tighter policy, others advise a more measured trot, and some suggest a wait-and-see approach.
Lagarde also reiterated her criticism of Trump’s economic agenda, accusing him of harming the global economy. At the same time, she acknowledged that the current course of the US policy presents an opportunity for the European Union to gain autonomy in key areas such as defense, energy, and finance.
Back in late March, Lagarde accused Trump of violating historical norms, warning that continued trade wars could draw many countries into conflict and expose them to the damaging consequences of such decisions.
