Christine Lagarde: “Europe Is Facing an Existential Crisis” | In Conversation with Martin Wolf

Video Description

Listen in as Christine Lagarde, President of the European Central Bank, speaks with Martin Wolf, the Financial Times’ Chief Economics Commentator, in this special session from the FT Global Boardroom, taking place 9–11 December 2025. As part of FT Live’s flagship global event, Lagarde discusses the eurozone’s economic resilience, the ECB’s progress on price stability, and why Europe is confronting an “existential crisis” driven by internal market fragmentation. She outlines the urgent need to remove structural barriers across EU member states, strengthen the capital markets union, and support innovation through productive investment. The conversation ranges across some of the most pressing issues facing Europe today — from inflation and fiscal policy to global currency competition, the threat posed by US-dominated stablecoins, and the strategic case for a digital euro. Lagarde also speaks about Europe’s defence financing, investor confidence, and the shifting geopolitical landscape reshaping global capital flows. This interview is part of the FT Global Boardroom, a free digital event hosted by FT Live, bringing together 100+ leading voices from business, finance, government and academia to debate the defining issues shaping the world economy. 👉 Register now for FREE to join the FT Global Boardroom: https://t.co/lP7mCwczOl Topics in this discussion include: - Eurozone inflation, growth outlook and resilience - Structural impediments and internal EU trade barriers - Capital markets union and the future of European investment - Fiscal policy, productive spending and joint EU issuance - The euro in global markets vs. the US dollar - Frozen Russian assets and international law - Risks of US-based stablecoins for European monetary sovereignty - Europe’s path toward a digital euro Chapters: 00:00 – Introduction 00:57 – Martin Wolf reflects on Lagarde’s career 01:23 – State of the Eurozone economy: inflation, resilience & projections 02:41 – Why Europe resisted economic shocks better than expected 03:45 – Productivity challenges and Europe’s growth potential 04:05 – Structural barriers, internal tariffs & EU market fragmentation 05:19 – Europe’s “existential crisis” and the urgent need for reform 06:01 – Are IMF estimates of internal EU trade barriers accurate? 06:36 – Lessons from the Netherlands and reducing self-inflicted obstacles 07:04 – Political resistance and national preferences blocking reform 07:54 – Macron’s proposal to broaden the ECB mandate 09:08 – Lagarde on why lower rates won’t fix structural barriers 09:40 – The ECB mandate: price stability and wider economic factors 10:20 – Political pressure and central banks as scapegoats 11:31 – Excess savings in the eurozone & investment gaps 13:03 – Why Europe needs a stronger capital markets union 14:29 – The challenge of keeping investment inside Europe 15:02 – Productive spending and the role of fiscal policy 16:08 – Should Europe increase joint investment, including in defence? 17:12 – Joint EU issuance & defence financing: Lagarde’s personal view 17:41 – The euro vs. the US dollar: shifting global investor sentiment 19:39 – Using frozen Russian assets to support Ukraine 20:45 – Protecting the rule of law and investor confidence 21:48 – US stablecoins and the threat to European monetary sovereignty 23:55 – The case for a digital euro 24:49 – Timeline: Will the digital euro launch under Lagarde? 25:21 – Digital euro and financial sovereignty examples 25:56 – Regulating euro-based private stablecoins 26:46 – Sovereignty, financial crime and the risks of US stablecoins 27:06 – Closing thoughts and end of interview