Trump's Re-Election Could Spell Trouble For Europe, Warns ECB President Christine Lagarde

The European Central Bank (ECB) president, Christine Lagarde, has voiced apprehensions about the possible re-election of Donald Trump as US president, terming it a “clear threat” to Europe.

What Happened: While speaking to France 2, Lagarde suggested that the policies implemented by Trump in his first term hint at potential future conflicts with Europe. These areas of potential conflict include trade protectionism, NATO military support, and climate change policies, as reported by the Financial Times on Thursday.

Lagarde, former IMF head and French government minister, dismissed rumors about leaving the ECB to return to politics before her term ends in 2027. She also pointed out the recent surge in inflation, stating that the “worst bit” is over and hinting at a possible interest rate cut by the ECB.

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Addressing the Houthi rebels’ attacks on Red Sea shipping, Lagarde mentioned that the situation “seems under control” and is unlikely to impact prices as the COVID-19 pandemic supply bottlenecks did.

Why It Matters: Following Trump’s announcement to run for president in 2024, many European leaders have expressed their concerns. German Chancellor Olaf Scholz was not impressed with the announcement and BMW Deputy Chairman Stefan Quandt urged Europe not to be naïve about Trump’s potential re-election.

Trump’s relationship with Russia’s President Vladimir Putin has also been a point of contention. Trump praised Putin for supporting his peace plan for Ukraine, despite Anthony Scaramucci, his former White House Communication Director, suggesting that Putin would have also invaded Poland if Trump were still president.

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