Lagarde: Recovery in the Economy Will be Missing and Transformational
Christine Lagarde, President of the European Central Bank (ECB), made evaluations about the Eurozone economy. Speaking at the North Star Summit organized by the European Business Leaders Convention, President Lagarde said, “This recovery will be incomplete and perhaps transformational,” he said. Lagarde said that the bottom point was probably crossed in the Eurozone in the economic crisis with the coronavirus (Covid-19) epidemic, and he underlined that he said cautiously because of the possibility of the second wave.
Worse than the 2008-2009 Crisis
Calling for the most vulnerable people to be vulnerable in the economic crisis, Lagarde also pointed out that global trade will decrease significantly. Stating that the coronavirus (Covid-19) epidemic is worse than the 2008-2009 crisis, Christine Lagarde stated that the savings will take a long time to turn into investment and expenditure. Pointing out that the central banks have met and managed the economic crisis in a “tremendous” way, Lagarde stated that they had no hesitation to use all the ECB instruments to solve the crisis.
ECB President Lagarde shared the thoughts of the European Union (EU) leaders on the economic crisis. Lagarde reported that they think leaders cannot reach an agreement on the bailout fund on 17 July.