European Central Bank chief calls for Europe’s tech independence amid US tariff threat

Christine Lagarde, President of the European Central Bank, has warned that Europe must wean itself off reliance on American and Chinese technology, calling for a “march towards independence.”

Her comments come just hours before former US President Donald Trump is expected to announce new tariffs on all EU goods entering the United States, Caliber.Az reports per foreign media.

Speaking on The Pat Kenny Show, Lagarde emphasised the need for Europe to enhance its self-sufficiency, particularly in the realm of digital payments. “When you think of it at the moment, a lot of our digital payment—e-commerce or when you use your card or your phone—you always rely on non-European infrastructure,” she said.

She pointed out that major payment systems such as Visa, MasterCard, PayPal, and Alipay are all controlled by American or Chinese companies. “Whether you use a card or a phone, typically it goes through Visa, MasterCard, PayPal, Alipay—where are all those coming from?” she asked. “Either the US or China; the whole infrastructure mechanism that allows for payments, credit and debit, is not a European solution.”

Lagarde made it clear that while these companies comply with EU regulations, Brussels must take steps to ensure a European alternative is available. “Just in case,” she added. “You never know.”

Turning to the looming US tariffs, Lagarde refrained from giving a direct opinion on the EU's response, stating that the matter was “something for the political leaders to decide.” However, she did warn that any tariffs imposed by the US would have a negative impact on the global economy.

“Our job at the Central Bank is to anticipate, to explain to them… what the consequences will be in terms of [the negative] economic impact—because it will be negative anyway the worldover,” she said. “The density and durability of the impact will vary depending on the scope, on the products targeted and how it lasts.”

On the issue of inflation, Lagarde noted that inflation in Ireland is currently at 1.8%, just below the eurozone average of 2.2% and the ECB’s target of 2%. She stated that the bank is “close to target,” and that the disinflationary trend is moving in the right direction. “We have come from very high inflation that was precipitated by a combination of shocks that came from one after the other,” she explained.

“We are now very close to [our] target; so, the disinflationary process is well under way. We are not quite at target yet; there is still a bit of work to do. But we are quite satisfied with the work that we have done.”

By Aghakazim Guliyev