Finance
ECB's Lagarde says European economy needs 'deep review' to face new world order
Published by Global Banking and Finance Review
Posted on January 21, 2026
1 min readLast updated: January 21, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on January 21, 2026
1 min readLast updated: January 21, 2026
Christine Lagarde calls for a deep review of the European economy to adapt to a new global order, highlighting the impact of US tariffs and the need to remove EU trade barriers.
PARIS, Jan 21 (Reuters) - The European economy needs a "deep review" to face "the dawn of a new international order", European Central Bank President Christine Lagarde told French radio RTL on Wednesday.
Lagarde said she only expected a slight inflationary effect from U.S. tariffs, with a stronger impact on Germany than on France, but she added European countries would be much stronger if they scrapped non-tariff trade barriers within the bloc.
Trump vowed on Saturday to implement a wave of increasing tariffs from February 1 on EU members Denmark, Sweden, France, Germany, the Netherlands and Finland, along with Britain and Norway, until the U.S. is allowed to buy Greenland, a step major EU states decried as blackmail.
(Reporting by Inti Landauro and Alessandro Parodi, Editing by Dominique Vidalon)
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. Central banks attempt to limit inflation to keep the economy running smoothly.
Monetary policy is the process by which a central bank manages the supply of money, often targeting interest rates to achieve macroeconomic objectives such as controlling inflation and stabilizing currency.
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