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ECB’s Lagarde says European economy needs ‘deep review’ to face new world order
Published by Global Banking and Finance Review
Posted on January 21, 2026
1 min read
Last updated: January 21, 2026
Economic Review in the Context of Global Changes
PARIS, Jan 21 (Reuters) – The European economy needs a “deep review” to face “the dawn of a new international order”, European Central Bank President Christine Lagarde told French radio RTL on Wednesday.
Impact of U.S. Tariffs on Europe
Lagarde said she only expected a slight inflationary effect from U.S. tariffs, with a stronger impact on Germany than on France, but she added European countries would be much stronger if they scrapped non-tariff trade barriers within the bloc.
Lagarde’s Insights on Inflation
Trump vowed on Saturday to implement a wave of increasing tariffs from February 1 on EU members Denmark, Sweden, France, Germany, the Netherlands and Finland, along with Britain and Norway, until the U.S. is allowed to buy Greenland, a step major EU states decried as blackmail.
(Reporting by Inti Landauro and Alessandro Parodi, Editing by Dominique Vidalon)