Central Banks

Lagarde Laments EU’s ‘Self-Inflicted’ Political Uncertainty

Christine Lagarde at a rates decision news conference in Frankfurt on Dec. 12. — Christine Lagarde at a rates decision news conference in Frankfurt on Dec. 12.
Photographer: Liesa Johannssen/Bloomberg

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By Craig Stirling, Mark Schroers, and Daniel Hornak

December 12, 2024 at 3:11 PM UTC

Updated on

December 12, 2024 at 3:39 PM UTC

This article is for subscribers only.

Europe’s tumultuous political backdrop loomed over the monetary policy decision taken by officials in Frankfurt on Thursday, according to Christine Lagarde.

While the European Central Bank president didn’t refer directly to the collapse of governments in both France and Germany in recent weeks, she observed that suspense about fiscal plans and electoral results aren’t helping her colleagues as they also wait for Donald Trump to take power in the US.