Europe’s economy is geared towards a disappearing world, says ECB’s Lagarde

Alvaro Santos Pereira, a member of the European Central Bank's Governing Council, has warned that a significant correction in financial markets and cryptocurrencies poses a major short-term risk to financial stability. This caution comes amid ongoing volatility in the markets, highlighting concerns over potential impacts on the broader economy.

Madis Muller, a member of the European Central Bank's Governing Council, expressed a relaxed stance regarding inflation in the euro area, suggesting that price pressures are manageable and indicating little desire for further interest rate adjustments. He noted that inflation is expected to remain close to the ECB's target of 2% for the foreseeable future.

The U.S. plan to create joint investment funds involving Russian frozen assets has raised concerns in Brussels, casting doubt on the European Union's financial support for Ukraine. This unexpected move by the Trump administration has blindsided EU officials, who are now reassessing their strategies regarding aid to Ukraine amidst ongoing geopolitical tensions.

European Central Bank President Christine Lagarde stated that Europe needs to shift away from a growth model reliant on exports. This change is essential for fostering sustainable economic growth within the continent.

Christine Lagarde, President of the European Central Bank, has warned that European economic growth is increasingly at risk due to a reliance on an export-dependent model that is becoming obsolete. She criticized policymakers for six years of inaction, emphasizing the urgent need for reforms to adapt to changing global dynamics.

The Liberal Democrats, led by Ed Davey, are pushing for a parliamentary vote to establish a new customs union with the EU. The party argues that this initiative is a more effective way to stimulate economic growth and increase revenue compared to raising taxes. They are urging Labour MPs to support the proposed bill, aiming to shift Labour's stance towards a more pro-EU position.

Frank Elderson, a member of the European Central Bank's Executive Board, is poised to extend his term as vice chair of the institution's supervisory arm, according to sources familiar with the situation.

The EU trade chief is focusing on increasing investment in Australian resources projects. This initiative aims to strengthen economic ties between the European Union and Australia, particularly in the resource sector, which is vital for both regions' economic growth.