In Wall Street Journal interview, ECB chief backs smaller country groupings to push capital markets reform and other long-delayed economic changes.
European Central Bank President Christine Lagarde has urged EU governments to rely on “coalitions of the willing” to push through long-stalled economic reforms, arguing the bloc doesn’t need all 27 countries on board to move forward.
In an interview with the Wall Street Journal published Saturday, Lagarde pointed to the 21-country eurozone as proof that deeper integration can work without full unanimity of the EU member states.
“We do not have the 27 around the table, and yet it works,” she said.
Lagarde’s remarks come as EU leaders debate how to complete the bloc’s long-stalled capital markets union. The project, now dubbed the “Savings and Investments Union,” is intended to deepen cross-border financial markets and mobilize private savings.
Frustration over slow progress has led several large EU member states, including France, Germany, Italy and Spain, to back a two-speed approach that would allow smaller groups of countries to integrate more quickly. European Commission President Ursula von der Leyen has said the EU could consider “enhanced cooperation” if unanimity cannot be reached.
Lagarde, whose term as ECB president runs until October 2027 and who has faced speculation about a possible early departure, said Europe should focus on delivering concrete reforms. In a sign of growing impatience, Lagarde earlier this month sent EU leaders a five-point checklist of “urgently needed” measures under the subject line “time for action,” outlining measures on capital markets integration, corporate harmonization and research coordination.
Even partial implementation of those measures would significantly boost Europe’s growth potential, she told the Wall Street Journal.