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Lagarde Warns Europe Risks Its Future as It Falls Behind on AI

She called for urgent steps to lift obstacles to adoption to avoid deeper dependence on foreign providers.

European Central Bank President Christine Lagarde delivers her keynote speech at Euro Finance Week, a weeklong annual financial conference in Frankfurt, Germany, November 21, 2025. REUTERS/Heiko Becker/File Photo
Europe's fastest supercomputer Jupiterr was launched in Germany in September to help in the AI race
ECB head Christine Lagarde urged Europe to remove obstacles to AI adoption

Overview

  • She urged diversification of critical AI supply chains and a minimum level of chips and data‑centre capacity to prevent single points of failure.
  • She identified fragmented regulation, high energy costs and slow permits as core obstacles to building and operating the compute Europe needs.
  • A Bitkom study cited in coverage put Europe’s data‑centre capacity at 16 GW, compared with 48 GW in the United States and 38 GW in China.
  • The EU last week proposed easing parts of its AI and data‑privacy rulebook, drawing support from business groups and criticism from privacy defenders.
  • UN rights chief Volker Turk warned that generative AI could threaten rights such as privacy, political participation and free expression.