• BCE.Draghi saved the euro and leaves Lagarde the challenge of avoiding the recession in Europe

The president of the European Central Bank (ECB), Christine Lagarde , has warned that monetary policy will soon be subject to a "strategic review" , although she stressed that she will continue to support the economy and respond to future risks in line with the institution's price stability mandate.

In his first speech within the scope of his responsibilities as central banker of the euro zone, Lagarde has called for a common response to the shared challenges that the Eurozone must face, which should imply "a new mix of European policies", including politics monetary, but also fiscal policy .

"The first is monetary policy, which I start with because it is my area of ​​responsibility and that will undergo a strategic review that will begin in the near future," Lagarde said without going into more detail.

"We will continuously monitor the side effects of our policies," added Lagarde, for whom monetary policy would achieve its objectives more quickly and with less side effects "if other policies were contributing with it to growth."

More investment

The former managing director of the International Monetary Fund (IMF) has pointed out that investment represents a key element in the response to the challenges of the euro zone, underlining the opportunity to "invest in a more productive, more digital and greener common future" .

In this regard, the president of the ECB recalled that public investment in the euro zone remains below pre-crisis levels, with declines in productive investment, while new investment needs arise. "Even when governments need to consolidate their accounts, we have a common interest in maintaining sufficient levels of public investment," he has recommended.

Also, Lagarde has added that a stronger domestic economy also depends on increased business investment, for which it is important to raise productivity, since firms need to rely on future growth if they are going to commit long-term capital.

In this way, the banker has stressed the importance of the euro zone gaining scale by boosting its internal market, for which it has urged to complete the digital single market, the union of the capital market and the single market of the services sector, which It also means culminating the economic and monetary union.

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  • IMF
  • Christine Lagarde

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