François Villeroy de Galhau suggested during a conference in the southeastern city of Lyon France Trump’s second term will bring with it “more trade protectionism” and more US budget deficits.
Villeroy, who is also a member of the Board of Governors, added European Central Bank Which determines Monetary policy For the euro zone, which includes 20 countries, these two matters “increase the risks to the global economy and Europe’s need to remobilize.”
Villeroy felt that pledge Trump With a raise Customs duties On imports, “higher inflation means, and most likely, lower growth around the world,” he said, noting that increased uncertainty may also weigh on growth.
Villeroy said that “the US elections should sound the alarm for Europe” after “a long period of inaction.”
But he also warned that “Europe is entering this new context with clear weaknesses,” including “technological decline” and “political divisions.”
