Economic Outlook Clouded by Uncertainty

European Central Bank (ECB) President Christine Lagarde highlighted on Thursday that the economic outlook is "clouded by exceptional uncertainty," particularly due to the tariffs imposed by the United States. The full impact of these tariffs "remains unclear," adding to the challenges faced by the euro area economy.

Signs of Stabilization in Manufacturing

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 the ongoing tariff disputes could discourage consumer spending and weaken investment.

Urgent Need for Policy Actions

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