Economic Outlook Clouded by Uncertainty

European Central Bank (ECB) President Christine Lagarde highlighted the "exceptional uncertainty" shadowing the economic outlook, particularly due to unclear U.S. tariffs, during her address on Thursday.

Signs of Stabilization in Euro Area

Lagarde noted potential growth in the euro area's first-quarter economy, with manufacturing sectors showing signs of stabilization. However, she cautioned that tariffs might deter consumer spending and weaken investment.

Call for Urgent Policy Actions

Emphasizing the need for swift action, Lagarde advocated for fiscal and structural policies to enhance the euro area's competitiveness, productivity, and resilience. This includes advancing the savings and investment union and expediting the legislative groundwork for a digital euro.