Lagarde: growth momentum slowed since 2018 due to global uncertainties and weak trade

2020-02-11T15:17:50.948Z

"The growth momentum of the euro area has slowed since the beginning of 2018, mainly due to global uncertainties and weaker international trade", which has also led to a "weakening of price pressure, and inflation remains far from our goal ": said the President of the European Central Bank Christine Lagarde speaking at the plenary in Strasbourg. Our monetary stimulus supported growth but cannot and should not be the only action on the ground. The longer our measures remain, the greater the risk that the side effects will become more pronounced ": the president of the European Central Bank Christine Lagarde said in her plenary session in Strasbourg. Lagarde therefore mentioned" structural and budgetary policies that can strengthen productivity ", and that in a low-interest environment" can be very effective. "" We are fully aware that the low-interest environment affects savings, asset valuation, risk-taking and the prices of homes. And we are closely monitoring possible negative side effects to ensure that they do not outweigh the positive impact of our measures on credit conditions, job creation and wages, "said Lagarde." The architecture of the euro area is incomplete , and jeopardizes its ability to make full use of the potential for citizens ", therefore it must be completed with" a full Banking Union that includes the common deposit insurance scheme, a true Capital Market Union that conveys investments, and a stabilizing function that defends against shocks, "said Lagarde." A more resilient economic and monetary union would not only help protect our lifestyles from adverse domestic and global developments, but would support EU influence in the world, including making the most attractive euro in the world, "he added.