Europe must end its reliance on American and Chinese technology, Christine Lagarde has warned.
Speaking just hours before Donald Trump announces tariffs on all EU goods imported into the United States, Ms Lagarde said the bloc must become more self-sufficient - something she characterised as a “march towards independence”.
The President of the European Central Bank added that she believes in particular that digital payments should be “under our control”.
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“When you think of it at the moment, a lot of our digital payment - e-commerce or when you use your card or your phone - you always rely on non-European infrastructure,” she told The Pat Kenny Show.
“Whether you use a card or a phone, typically it goes through Visa, MasterCard, PayPal, Alipay - where are all those coming from?
“Either the US or China; the whole infrastructure mechanism that allows for payments, credit and debit, is not a European solution.”
Ms Lagarde continued that while these firms work in compliance with EU regulations, she still believes Brussels should “make sure there is a European offer”.
“Just in case,” she said.
“You never know.”
Christine Lagarde. Picture by: xEibner-Pressefoto/FlorianxWieganx EP_FWDOn the issue of how the European Union should respond to US tariffs, Ms Lagarde refused to be drawn and said the issue was “something for the political leaders to decide”.
However, she did warn that the consequences of the tariffs would be wholly negative for the economy.
“Our job at the Central Bank is to anticipate, to explain to them… what the consequences will be in terms of [the negative] economic impact - because it will be negative anyway the worldover,” she said.
“The density and durability of the impact will vary depending on the scope, on the products targeted and how it lasts.”
The Eurotower of the European Central Bank in Frankfurt. Image: Alamy Stock PhotoInflation in Ireland is currently at 1.8% - slightly below the eurozone average of 2.2% and the ECB’s 2% target.
Ms Lagarde said she believes that overall the bank is “close to target” and that the trend remains positive.
“We have come from very high inflation that was precipitated by a combination of shocks that came from one after the other,” she said.
“We are now very close to [our] target; so, the disinflationary process is well under way.
“We are not quite at target yet; there is still a bit of work to do.
“But we are quite satisfied with the work that we have done.”
Ms Lagarde is visiting Ireland to accept the Sutherland Leadership Award from KPMG.
Main image: Pat Kenny and Christine Largarde. Picture by: Newstalk.
