ECB President Highlights Economic Challenges

European Central Bank (ECB) President Christine Lagarde expressed concerns over the economic outlook, describing it as "clouded by exceptional uncertainty". The ambiguity surrounding US-imposed tariffs adds to the challenges, with their full impact still unclear.

Signs of Growth Amidst Uncertainty

Despite these uncertainties, Lagarde noted that the euro area economy likely experienced growth in the first quarter, with the manufacturing sector showing signs of stabilization. However, she cautioned that tariffs could deter consumer spending and weaken investment, posing significant risks to economic recovery.

Call for Urgent Policy Actions

Lagarde emphasized the urgency of implementing fiscal and structural policies to enhance the euro area's competitiveness, productivity, and resilience. Key measures include finalizing the savings and investment union and swiftly establishing the legislative framework for the potential introduction of a digital euro.