European Central Bank (ECB) president Christine Lagarde has urged the European Union to diversify its trade partnerships beyond the United States in order to safeguard growth and resilience.
Speaking at the World Economic Forum’s International Business Council in Geneva, Lagarde acknowledged that the US would remain a vital trading partner for the EU. However, she stressed that the bloc’s export-oriented economy must deepen ties with other regions to reduce vulnerabilities and ensure sustainable growth.
Lagarde also cautioned that euro area economic growth is likely to slow in the third quarter of 2025, as the temporary boost from frontloading activities fades.
While recent trade agreements have helped to ease pressures, she noted that global uncertainty persists, driven largely by unpredictable policy environments worldwide.
“Trade diversification is not about replacing existing partners,” Lagarde said, “but about building additional bridges that can support Europe’s competitiveness in a more uncertain world.”
Her remarks come as the EU faces rising geopolitical tensions, sluggish global demand, and structural challenges at home. Economists note that expanding trade with Asia, Africa, and Latin America could provide new opportunities for European exporters, while also supporting broader global economic stability.
Lagarde’s comments underscore the ECB’s view that resilient growth will depend not only on monetary policy but also on stronger, more diverse global trade connections in the years ahead.
European Central Bank (ECB) president Christine Lagarde has urged the European Union to diversify its trade partnerships beyond the United States in order to safeguard growth and resilience.
Speaking at the World Economic Forum’s International Business Council in Geneva, Lagarde acknowledged that the US would remain a vital trading partner for the EU. However, she stressed that the bloc’s export-oriented economy must deepen ties with other regions to reduce vulnerabilities and ensure sustainable growth.
Lagarde also cautioned that euro area economic growth is likely to slow in the third quarter of 2025, as the temporary boost from frontloading activities fades. While recent trade agreements have helped to ease pressures, she noted that global uncertainty persists, driven largely by unpredictable policy environments worldwide.
“Trade diversification is not about replacing existing partners,” Lagarde said, “but about building additional bridges that can support Europe’s competitiveness in a more uncertain world.”
Her remarks come as the EU faces rising geopolitical tensions, sluggish global demand, and structural challenges at home. Economists note that expanding trade with Asia, Africa, and Latin America could provide new opportunities for European exporters, while also supporting broader global economic stability.
Lagarde’s comments underscore the ECB’s view that resilient growth will depend not only on monetary policy but also on stronger, more diverse global trade connections in the years ahead.
