Overview
- Christine Lagarde used a speech at the Frankfurt European Banking Congress to argue that Europe can counter the growth hit from higher U.S. tariffs through internal reforms.
- She said implementing roughly 25% of identified single-market measures would be enough to fully neutralize the tariffs’ impact on growth.
- Lagarde advocated mutual recognition of EU-wide approvals instead of full regulatory harmonization to speed integration.
- She criticized the European Council’s unanimity requirement as a key obstacle to completing the single market.
- Lagarde emphasized that no new treaties are needed and that political will to use existing tools is the crucial next step.