Balanced News: ECB’s Lagarde: Increasing signs that the global economy is fragmenting into competing blocs

European Central Bank President Christine Lagarde has warned that the global economy is fragmenting into competing blocs, with Europe facing deglobalization, demographics, and decarbonization. Lagarde emphasized the need for massive investment in a short period of time to address these challenges, including reassessing supply chains, investing in new technologies, and advancing the green transition. She estimated that the bloc’s green transition would require an additional investment of €620 billion per year until the end of the decade and €125 billion per year for a digital transition. Lagarde also highlighted the proposed capital markets union as a means to address the high debt levels and support recovery funding.