ECB Executive Board Member Highlights Risks to Global Economy

European Central Bank (ECB) Executive Board member Piero Cipollone addressed the potential significant effects of the tariffs imposed by the Trump administration on the real economy during a conference titled "Policy challenges in a fragmenting world: Global trade, exchange rates, and capital flow".

Rising Risk of Western Bloc Fragmentation

Cipollone emphasized the "rising risk" of fragmentation within the Western bloc, attributing it to the tariffs that could endanger long-standing international partnerships.

Long-term Consequences for Growth and Stability

The ECB official warned of the potentially profound medium- and long-term impacts on "growth, stability and prosperity" due to increasing fragmentation.